Financial Data and Key Metrics Changes - Total revenue in Q3 grew 18% as reported and in constant currency, with a contribution from the new transaction model of approximately $124 million [8][9] - Billings increased 21% as reported and 20% in constant currency, with a contribution from the new transaction model of approximately $135 million [9][10] - Third quarter GAAP and non-GAAP operating margins were 25% and 38% respectively, reflecting year-over-year increases of approximately 330 basis points and 120 basis points [10][14] - Free cash flow for Q3 was $430 million, benefiting from earlier timing of billings and lower cash tax payments [10][14] Business Line Data and Key Metrics Changes - Strength was observed in AECO (architecture, engineering, construction, and operations), driven by sustained investment in data centers, infrastructure, and industrial buildings [8][9] - The Autodesk Store and billing linearity during the quarter were stronger than expected, contributing to overall revenue growth [8][9] Market Data and Key Metrics Changes - RPO (Remaining Performance Obligations) of $7.4 billion and current RPO of $4.8 billion both grew 20%, benefiting from the new transaction model [9][10] - The macroeconomic environment appears broadly stable, but uncertainty remains elevated [12][14] Company Strategy and Development Direction - The company is focused on enhancing products with cloud-based platforms and capabilities, redefining its business model and go-to-market strategies [5][6] - Autodesk aims to capture shared value through subscription, consumption, and outcome-based business models that blend human and machine capabilities [6][22] - The strategy includes building a vibrant third-party ecosystem to enhance solution value and efficiency [6][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value being created for customers and shareholders, despite geopolitical and macroeconomic uncertainties [5][6] - The company raised its full-year guidance for billings and revenue, reflecting current business momentum [13][14] - Management acknowledged potential disruptions in the sales and marketing optimization plan but remains focused on controllable factors driving revenue and margins [12][14] Other Important Information - The company plans to buy back approximately $1.3 billion of stock, a 50% increase compared to fiscal 2025 [14] - The transition to annual billing for most multi-year contracts is expected to significantly diminish tailwinds next year [10][12] Q&A Session Summary Question: Discussion on seats versus consumption AI monetization - Management highlighted the capacity challenge in industries served and the balance between human engagement and machine execution in future projects [26][28] Question: Insights on fiscal 2027 outlook - Management indicated that while the business is performing well, there are risks of disruption and macroeconomic uncertainty that will be considered in future guidance [30][31] Question: Autodesk Construction Cloud penetration - Management noted that there is still room for increased penetration within existing accounts and emphasized the unique value proposition of the Autodesk Construction Cloud [35][37] Question: PLM market opportunities - Management stated that many mid-market customers lack strong data management solutions and that Autodesk aims to provide them with modern, SaaS-based platforms [39][40] Question: Customer migration and packaging strategies - Management discussed efforts to ensure customers are not left behind during transitions and the importance of seamless integration between existing and new products [44][46] Question: Trends in usage telemetry - Management confirmed that momentum in Q3 was consistent with previous quarters, with no new emerging trends to highlight [48] Question: Billings growth mechanics - Management clarified that there was no unusual M&A activity affecting growth rates and attributed outperformance to strong execution and favorable macro conditions [51][62] Question: Customer spending plans for 2026 - Management reported that customers are maintaining their spending patterns and investing in digital infrastructure [58][59] Question: Fiscal 2027 growth expectations - Management emphasized the importance of considering macro risks and the performance of the underlying business when guiding for fiscal 2027 [84]

Financial Data and Key Metrics Changes - Total revenue in Q3 grew 18% as reported and in constant currency, with a contribution from the new transaction model of approximately $124 million [9][10] - Billings increased 21% as reported and 20% in constant currency, with a contribution from the new transaction model of approximately $135 million [10] - Third quarter GAAP and non-GAAP operating margins were 25% and 38% respectively, reflecting year-over-year increases of approximately 330 and 120 basis points [11][12] - Free cash flow for Q3 was $430 million, benefiting from earlier timing of billings and lower cash tax payments [11] Business Line Data and Key Metrics Changes - Strength was observed in AECO (architecture, engineering, construction, and operations), driven by sustained investment in data centers, infrastructure, and industrial buildings [9] - The Autodesk Store and billing linearity during the quarter were stronger than expected, contributing to overall revenue growth [9] Market Data and Key Metrics Changes - RPO (Remaining Performance Obligations) of $7.4 billion and current RPO of $4.8 billion both grew 20%, benefiting from the new transaction model [10] - The macroeconomic environment appears broadly stable, but uncertainty remains elevated [13] Company Strategy and Development Direction - The company is focused on the convergence of design and make in the cloud, leveraging AI and platform capabilities to enhance customer value [17][18] - Autodesk is building a vibrant third-party ecosystem to enhance its solutions and create new monetization opportunities [7][19] - The strategy includes redefining business models and go-to-market approaches to capture shared value through subscription and consumption-based models [7][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value being created for customers and shareholders, despite geopolitical and macroeconomic uncertainties [5][6] - The company raised its full-year guidance for billings and revenue, reflecting strong underlying business momentum [14][15] Other Important Information - The company plans to buy back approximately $1.3 billion of stock, a 50% increase compared to fiscal 2025 [15] - The transition to annual billing for most multi-year contracts is expected to significantly diminish tailwinds next year [11][14] Q&A Session Summary Question: Insights on seats versus consumption AI monetization - Management highlighted a capacity challenge in industries served and the balance between human engagement and machine execution in future projects [28][30] Question: Fiscal 2027 outlook - Management indicated that while the business is performing well, there are risks of disruption and macroeconomic uncertainty that will be considered in future guidance [32] Question: Autodesk Construction Cloud penetration - Management noted that there is still room for increased penetration within existing accounts and emphasized the unique value proposition of the Autodesk Construction Cloud [36][39] Question: PLM market opportunities - Management stated that many mid-market customers lack strong data management solutions and Autodesk aims to provide them with modern, cloud-based platforms [41][42] Question: Customer migration and packaging - Management discussed efforts to ensure customers are not left behind during transitions and emphasized the importance of seamless integration between existing and new products [47][48] Question: AI capabilities and retention - Management confirmed that AI-driven capabilities like auto-constraints are enhancing customer retention and creating opportunities for incremental monetization [68][70] Question: Margin expansion drivers - Management identified go-to-market optimization and operating leverage as key levers for achieving margin targets [72][73]

Financial Data and Key Metrics Changes - Total revenue in Q3 grew 18% as reported and in constant currency, with a contribution from the new transaction model of approximately $124 million [8] - Billings increased 21% as reported and 20% in constant currency, with a contribution from the new transaction model of approximately $135 million [9] - Third quarter GAAP and non-GAAP operating margins were 25% and 38% respectively, reflecting year-over-year increases of approximately 330 and 120 basis points [10] - Third quarter free cash flow was $430 million, benefiting from earlier timing of billings and lower cash tax payments [10] Business Line Data and Key Metrics Changes - Strength was observed in AECO (architecture, engineering, construction, and operations), driven by sustained investment in data centers and infrastructure, offsetting softness in commercial [7] - The Autodesk Construction Cloud is gaining momentum, with significant migrations from competitors, indicating strong demand for integrated solutions [17][18] Market Data and Key Metrics Changes - The macroeconomic environment appears broadly stable, but uncertainty remains elevated, impacting guidance for fiscal 2027 [12] - The company is seeing strong engagement from customers, particularly in the AECO sector, with continued investment in digital infrastructure [59] Company Strategy and Development Direction - Autodesk is focused on the convergence of design and make in the cloud, leveraging AI and industry clouds to enhance product offerings and customer value [15][16] - The company aims to redefine its business model and go-to-market strategies, positioning itself for long-term growth and margin expansion [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate geopolitical and macroeconomic uncertainties while executing on strategic initiatives [4] - The company has raised its full-year guidance for billings and revenue, reflecting strong underlying business momentum [12][13] Other Important Information - The company plans to buy back approximately $1.3 billion of stock, a 50% increase compared to fiscal 2025 [13] - Autodesk is integrating AI capabilities deeply into its products, enhancing customer workflows and driving productivity [16][20] Q&A Session Summary Question: Insights on seats versus consumption AI monetization - Management highlighted a capacity challenge in industries served and the balance between human engagement and machine execution in future projects [26][27] Question: Fiscal 2027 outlook - Management indicated that while the business is performing well, there are risks of disruption and macroeconomic uncertainty that will be considered in future guidance [31] Question: Autodesk Construction Cloud penetration - Management noted that there is still room for increased penetration within existing accounts and emphasized the unique value proposition of their platform [35][37] Question: AI capabilities and their impact on retention and pricing power - Management confirmed that AI-driven capabilities are enhancing customer satisfaction and retention, with potential for incremental monetization opportunities [67][69] Question: Channel productivity and operational elements - Management stated that operational friction from the new transaction model is being addressed, and partners are beginning to see improved productivity [89][90]