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DATE

May 28, 2026

CALL PARTICIPANTS

• President and Chief Executive Officer — Andrew Anagnost
• Chief Financial Officer and Executive Vice President — Janesh Moorjani
• Vice President, Investor Relations — Simon Mays-Smith

TAKEAWAYS

• Total revenue -- $1.98 billion, representing 18% growth as reported and 16% in constant currency.
• Billings -- $2.13 billion, rising by 18% as reported and 15% in constant currency.
• GAAP operating margin -- 28%, up approximately 14% due to the absence of onetime charges and margin improvements.
• Non-GAAP operating margin -- 39%, increasing by approximately 2%, reflecting operating leverage and sales optimization benefits.
• Free cash flow -- $876 million, benefiting from typical seasonal strength, partly offset by restructuring costs.
• Share repurchases -- 1.9 million shares repurchased for $448 million during the quarter.
• Acquisition announcement -- Definitive agreement signed to acquire MaintenX, a maintenance and asset operations software provider, to be funded with cash and debt.
• MaintenX performance -- Expected to surpass $135 million in annualized recurring revenue in calendar 2026, growing at over 50%.
• Updated guidance -- Raised full-year total billings outlook to $8.505 billion–$8.58 billion and revenue outlook to $8.155 billion–$8.215 billion.
• Operating margin guidance -- GAAP margin guided to a 20%–28% range; non-GAAP margin raised to approximately 39% for the year.
• Free cash flow guidance -- Raised lower bound to a range of $2.725 billion–$2.8 billion.
• Transaction model impact -- New transaction model gave a 3.5% revenue growth tailwind and 1.5% billings growth tailwind this quarter, with diminishing effects projected over the year.
• Sales reorganization -- Channel and sales structure changes were in line with expectations, with renewals remaining strong, and new subscription growth as anticipated.
• Geographic growth -- Americas, EMEA, and APAC each reported 17% year-over-year growth, with EMEA performance affected by timing and sales transition dynamics.
• Stock-based compensation -- Expected to fall below 10% of revenue during fiscal 2027.

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RISKS

• Janesh Moorjani said, "While MaintenX itself does not have the margin profile that Autodesk does, we are going to absorb that business into and stay true to our margin goals," indicating a near-term margin dilution from the acquisition.
• Guidance includes "prudent to reflect temporary risk to billings and revenue as we operationalize our sales optimization plan."
• Ongoing reduction in multiyear contract discounting will continue to weigh on unbilled deferred revenue growth, as explicitly stated by Moorjani.

SUMMARY

Autodesk (ADSK 4.62%) delivered revenue that surpassed the upper end of its guidance. Management raised full-year outlooks for revenue, billings, non-GAAP operating margin, and free cash flow. The company announced a definitive agreement to acquire MaintenX, a provider of asset maintenance and operations software, which is expected to accelerate Autodesk's expansion into operations workflows and extend its AI and digital twins capabilities. Management emphasized that the MaintenX acquisition will significantly broaden the addressable market without disrupting Autodesk's long-term operating margin framework, though near-term dilution is acknowledged. The sales reorganization and transaction model changes progressed as projected, with customer renewal strength and stable performance across all geographies.

• Andrew Anagnost described MaintenX as a key step in Autodesk's goal "to converge the entire built world life cycle," and identified a resulting $40 billion total addressable market expansion.
• Moorjani confirmed that integration of MaintenX will be "within our fiscal 2027 and fiscal 2029 margin goals," reinforcing the absorption of margin impact into established targets. The fiscal year ends Jan. 31, 2027.
• Contract duration mix and curated discount reductions were cited as drivers behind lower RPO growth, with management framing this as a positive long-term trade-off for price realization.
• Anagnost asserted, "MaintenX is a complete heterogeneous solution. Every asset that the customer has to manage can be managed within an environment like MaintenX," highlighting the acquisition's technical differentiation versus competitors in fragmented maintenance software landscapes.
• Management cited accelerating product revenue contributions, specifically in Forma for Construction and Fusion, as evidence of growing customer adoption of Autodesk's unified platform strategy.

INDUSTRY GLOSSARY

• AECO: Acronym for Architecture, Engineering, Construction, and Operations, denoting the industry's full project lifecycle from design through operations.
• AOS: Autodesk Operation Solutions, a division focused on operational and asset management software workflows.
• RPO: Remaining Performance Obligations, representing contracted future revenue not yet recognized.
• GAAP/Non-GAAP operating margin: Measures of operating profitability reported under Generally Accepted Accounting Principles versus those adjusted for certain items; critical for understanding margin trends and guidance.
• Digital twin: A virtual representation of physical assets, systems, or processes, used for monitoring, simulation, and optimization across their lifecycle.

Full Conference Call Transcript

Simon Mays-Smith: Thanks, operator, and good afternoon. Thank you for joining our conference call to discuss Autodesk's fiscal 27 first quarter results. Andrew Anagnost, our CEO and Janesh Moorjani, our CFO, are on the line with me. During this call, we will make forward looking statements, including outlook and related assumptions on products, artificial intelligence, sales and marketing optimization, go to market strategies, trends, and pending transactions. Actual events or results could differ materially. Please refer to our SEC filings, including our most recent Form 10 k and the Form 8-K, filed with today's press release. For important risk and other factors that may cause our actual results to differ from those in our forward looking statements.

Forward looking statements made during the call are being made as of today, If this call is replayed or reviewed after today, the information presented during the call may not contain current or accurate information. Autodesk disclaims any obligation to update or revise any forward looking statements. We will quote several numerical growth changes during this call, and as we discuss our financial performance. Unless otherwise noted, each such reference represents a year on year comparison. All non GAAP numbers referenced in today's call are reconciled in our press release and supplemental materials available on our Investor Relations website you will also find a presentation deck on the acquisition announced today.

And now I will turn the call over to Andrew.

Andrew Anagnost: Thank you, Simon, and welcome everyone to the call. We delivered strong Q1 fiscal 2027 results today with revenue and earnings per share above the high end of guidance ranges, and this outperformance flows through to our full year guidance. Today, we shared in a separate announcement that we have entered into a definitive agreement to acquire MaintenX, a leading modern maintenance and asset operation solution used by organizations to manage and optimize day-to-day operations. The acquisition reflects Autodesk's commitment to becoming a long term leader in operations and builds upon Autodesk operation solutions AOS, capabilities in digital twins and factor design.

I am going to devote my opening remarks to operations, and we will return to our other strategic initiatives after Janesh's discussion of our financial performance and guidance. Autodesk's strategy is to converge design, make and operate data and context continuously through the full life cycle. This benefits owners, designers, builders, manufacturers and operators through increased efficiency and resilience and reduced risk and downtime. Operations is highly complementary to the design and make category, reflecting growing customer demand and more continuous data driven workflows from concept through to operation and optimization.

With this expansion in operations, we plan to unlock higher value system level AI extend our duration with assets and systems from years to decades, and meaningfully expand our addressable market. MaintenX helps organizations manage maintenance, assets, and frontline operations with a modern mobile first platform with prebuilt integrations that serve as both a system of record and action for day-to-day operational workflows. it is led by world class engineering and AI talent and delivers a scalable go to market growth motion for operations and strong expansion potential across customer segments, geographies, and adjacent use cases.

Its position as a key component of maintenance and operational activity gives Autodesk access to rich data on asset condition and history, inspections, maintenance patterns, and real world performance. Bringing MaintenX into Autodesk begins to build the data and context loop that enables a new generation of more integrated, data driven, and AI powered capabilities connecting digital design and make with real world performance to deliver predictive maintenance, intelligent automation, and real time decision support. In short, we are excited to welcome the MaintenX team to Autodesk and this acquisition will position us to help our customers increase efficiency and resilience and reduce risk and downtime through convergence. Janesh, over to you to discuss our quarterly financial performance and guidance.

Janesh Moorjani: Thanks, Andrew. Q1 was another strong quarter. Overall, the underlying momentum of the business was consistent with prior quarters, and a bit better than the assumptions we built into our guidance range, with strength coming from similar industry segments in AECO particularly in construction and emerging markets. Our sales reorganization is proceeding as planned. The overall impact to new subscription growth was within the range of our expectations, while upfront revenue was less impacted than we expected. Renewal rates remain strong. Total revenue in the first quarter grew 18% as reported and 16% in constant currency. As expected, the new transaction model provided a tailwind of 3.5% to revenue growth in the first quarter.

Please see the tables in our press release, earnings deck, and Excel financials for details by product and region. Billings increased 18% as reported and 15% in constant currency. The new transaction model provided a tailwind of roughly 1.5% to billings growth in the first quarter. We completed the transition to annual billings for most multiyear contracts during the quarter, so there will no longer be noise in billings from that transition, But with the ongoing reduction in the level of multiyear discounting, we expect the shift from multiyear to annual contracts will continue to benefit price realization, while also weighing on unbilled deferred revenue growth. Turning to margins.

First quarter GAAP and non GAAP operating margins were 28%, 39%, respectively. GAAP operating margin increased approximately 14%, primarily due to the absence of onetime charges and underlying margin improvements. Non GAAP operating margin was up approximately 2%. This primarily reflected operating leverage and the benefits from our sales optimization. First quarter free cash flow of $876 million benefited from typical seasonal strength. Partly offset by cash restructuring costs. Moving on to capital allocation. We repurchased approximately 1.9 million shares during the quarter for $448 million We continue to expect our share buyback in fiscal 2027 to be similar to fiscal 2026 in total dollars.

We expect to MaintenX, a healthy buyback program that continues to apply approximately 50% flow to further reduce share count over time. Our capital allocation framework is unchanged. In addition to share repurchases, we still plan to deploy cash to the highest return opportunities prioritizing organic investment in R&D, including cloud platform and AI, and accelerating the realization of our strategy with targeted and tuck in acquisitions. MaintenX is a good example of this and will be the cornerstone in scope and scale of our acquisition investment in operations. Building on our successful expansion in construction, we are applying the same playbook to expand in operations. The foundation is the same.

A cornerstone acquisition of an established and disruptive market leader with a strong go to market notion. We expect to fund the acquisition of Maintenex through a combination of cash on hand and debt financing. Maintenex expects to achieve in excess of $135 million annualized recurring revenue this calendar year with growth in excess of 50%. We expect the transaction to close later this fiscal year subject to regulatory approvals. We will include the impact of the acquisition in our guidance after the transaction closes. We intend to absorb the dilution from MaintenX within our fiscal 27 and fiscal 29 margin goals. After close, MaintenX will be integrated into Autodesk operation solutions or AOS under Steven Hooper SVP of AOS.

As many of you who have met him over the years know, Steven brings the product vision, go to market expertise, and decades of operational experience at scale to turn AOS into our next major growth engine. Let me finish with guidance. Our guidance philosophy is unchanged. Our guidance continues to be based on the range of possible outcomes in our bottom up sales forecast, which is grounded in the momentum of business and embeds prudent to reflect temporary risk to billings and revenue as we operationalize our sales optimization plan. Full year guidance assumptions that we described last quarter remain largely unchanged. We assume the macroeconomic environment will remain broadly stable through the year.

Billings and revenue guidance continue to reflect potential from our sales restructuring, consistent with the plan we laid out in February and what we saw in the first quarter. We continue to expect billings to be slightly more weighted to the second half, in part reflecting that disruption and in part due to the weighting of our largest EBA cohort in the fourth quarter. Noise from the new transaction model was significantly diminished during the year, from an approximately 3.5 percentage point tailwind to revenue growth in Q1 to approximately 2% in Q2 and averaging out at approximately 1.5% for the full year. We will talk about it less as that noise states.

Non GAAP margins will continue to reflect ongoing operating leverage, savings from restructuring and sustained investments in our long term strategic priorities. Free cash flow in fiscal 2027 will continue to reflect discrete restructuring outflows and tax benefits. The net effect of these discrete cash movements is immaterial to free cash flow in fiscal 27. Our US federal cash tax payments will begin to normalize in fiscal 28. We continue to manage our stock based compensation with discipline. We expect SBC to fall below 10% in fiscal 27 continuing the trend of the last few years.

Reflecting all this for fiscal 27, we have raised the bottom end of our prior billings guidance to a range of $8.505 billion to $8.580 billion reflecting the sustained momentum of the business. We have raised our revenue guidance to a range of $8.155 billion to $8.215 billion reflecting our strong results in the first quarter. Our GAAP operating margin guidance range is 20% to 28%. We have raised our non GAAP operating margin guidance to approximately 39% reflecting our increased revenue guidance.

We have also raised the bottom end of our free cash flow guidance to a range of $2.725 billion to $2.8 billion In summary, we remain disciplined and focused on the controllable factors that drive our revenue, operating margin, earnings per share, and capital allocation which are the key building blocks of free cash flow per share. Slide deck on our website has modeling assumptions for the second quarter and full fiscal year 2027. Andrew, back to you.

Andrew Anagnost: Thank you, Janesh. Autodesk is focused on convergence powered by our platform, industry clouds, AI. Let me give you some examples of our progress in the quarter that demonstrate how this differentiated strategy works. For our customers in architecture, engineering, construction, manufacturing and operations, Convergence increases efficiency and resilience and reduces risk and downtime. All of this is in service of deploying fewer resources to every project so they can bid on and win more projects with the resources they have. As you can see in the performance of Mike, Forma for Construction's revenue growth accelerated again and has strong momentum with owners, designers, GCs, and subcontractors seeking to converge design and construction workflows.

Once again, customers are choosing to consolidate fragmented legacy systems onto Autodesk platform. For example, dome construction, an ENR Top 400 general contractor, selected Forma for Construction to replace disconnect legacy point solutions and standardize workflows across preconstruction, VDC, project execution, cost management, and turnover. In Europe, Essex Services Group, a leading UK building services contractor, signed a multiyear enterprise agreement for Forma Build to consolidate fragmented systems across complex data center and commercial projects. And Germany's largest municipal water utility, Berlin Water, expanded its use of auto solutions, including Forma Design Collaboration to modernize collaboration across water infrastructure planning and delivery. These stories have a common theme.

Converging people, processes, and data across the project life cycle to increase efficiency and resilience, decrease risk, and prepare for an agentic AI world. Our comprehensive end to end industry clouds and platform drive convergence and extend our footprint further into the larger growth segment. In manufacturing, customers are demanding convergence as they invest in their digital transformation to leverage granular and unified data and embrace AI driven automation capable of industry transformation. By consolidating on our platform, customers have the flexibility and connectivity across workflows to increase agility, innovation, and resilience.

For example, Loh Services, the shared services of the Friedhelm Loh Group a German industrial technology conglomerate, renewed and expanded enterprise agreement with Autodesk to better connect CAD, product data management, and enterprise systems, reducing fragmentation and accelerating time to market. The US, a leading automotive manufacturer renewed its enterprise agreement with Autodesk to advance its factory of the future strategy, standardizing on Autodesk solutions across digital factory and AECO workflows, to reduce vehicle lead times and scale factory design simulation across 14 factories for more proactive, data driven production planning. In addition, a visual display and fabrication company replaced a legacy design solution with Fusion after a multi month evaluation.

Connecting design and manufacturing in the cloud to reduce handoffs and move projects through development faster. And in Europe, Schiedel, a leading manufacturer of chimney systems, implemented an integrated inventor, and Fusion workflow to automate product configuration, generating thousands of modular component variants automatically to fast track assembly and drawing creation. All of this was reflected in Fusion's accelerating growth. Let me finish by talking about AI. As I said last quarter, building agentic AI requires data, context, and expertise. What differentiates Autodesk is that we have all 3 at scale. And each 1 is scarce.

We have scarce geometric rich data from real design and make workflows that lets us build frontier 3D foundation models grounded in how the built world is designed and made. We have real world workflow context. Including design intent, constraints, constructability, coordination, and trade offs, that enable industry specific MCP and agentic based workflows that work reliably across the life cycle. We have deep domain and technical expertise that translates data and context into trusted products defensible IP, and knowledge graphs built for professional grade outcomes. That foundation matters because our customers do not just need AI that can generate They need AI that produces outputs that are correct in the real world. That is a hard problem.

And we are using a hybrid approach to solve it. We are combining probabilistic AI generation with deterministic engineering validation using parametric and physics based engines designed to reason about the physical world in 3D, so AI generated outcomes can be validated against real world constraints. Simply put, AI can generate our engines can validate. Let me unpack that a bit. Frontier models are incredibly capable, but they are still fundamentally vision and language systems. Simply generating drawings is very different from understanding how something performs, behaves, or can actually be manufactured and constructed. For our customers, that accuracy matters.

Through assistance and MCP infrastructure, Autodesk provides the harness layer that makes frontier models more controllable, context aware, and useful across the life cycle. Autodesk Assistant is a good example already in market and there are even more powerful tools on the way. But we are going much further than MCP and agent based workflows. Autodesk 3D foundation models use decades of engineering intelligence combined with trusted product engines to directly reason about geometry and physical relationships. Enabling workflows like similarity search, drawing dimensions, constraints, building plans, and geometry aware automation. Auto constraint infusion and more expansive features like our soon to be launched building layout explorer Informa are good examples of our progress here.

When Autodesk AI generates a design revision, manufacturing toolpath, routing layout, or simulation setup, That output is validated to the same core parametric models from Autodesk that are customers have trusted for decades. These systems perform deterministic checks geometric integrity, manufacturability, constructability, standards compliance, and performance. Every validation loop also improves the platform itself. Continuously strengthening our AI models, validation systems, and quality thresholds over time. With MaintenX, we intend to extend those capabilities to develop digital twins that move beyond descriptive and informative models to high value predictive and autonomous workflows and systems.

This combination of probabilistic AI generation and deterministic engineering validation is why we said last quarter that 3D Identik AI requires high fidelity, geometry rich data deep industry context embedded in real world design and make processes, and specialized 3D AI expertise. Few companies have all these. Autodesk does. it is why we believe Autodesk will define the next generation of industrial AI. Operator, we would now like to open the call up for questions.

Operator: Thank you. And wait for your name to be announced. Withdraw your question, please press *11 again. 1 moment, please. And our first question comes from the line of Saket Kalia with Barclays.

Analyst (Saket Kalia): Okay, great. Hey, guys. Thanks for taking my questions here, and congrats on MaintenX.

Andrew Anagnost: Thanks, Saket.

Janesh Moorjani: You too, Saket.

Analyst (Saket Kalia): Sure thing. Andrew, maybe that is a good place to start with you. Broadly speaking, could you just give us a bit more color on MaintenX as a company? And how it may be helps further Autodesk sort of strategic goals long term?

Andrew Anagnost: Yeah. I think that is an excellent place to start, Saket. So let's start with the broader strategic context. You know, in Autodesk, our goal is to converge the entire built world life cycle. From design, make, all the way through operate and close that loop. You have already seen us make a lot of great progress in the design and make side of this. You have seen what done in manufacturing construction. Now we are moving more aggressively into operations And this is going to unlock a deeper and broader data and context layer that makes our capabilities more powerful in the agentic world. it is going to unlock a $40 billion TAM for us.

And it is also going to advance our digital twins strategy from static to dynamic and ultimately to predictive. And let me tell you a little bit about the scope of our ambition and then how MaintenX plays into it. Our scope spans all the way from product manufacturing through to critical infrastructure like water and data centers through transportation, which is like airports into commercial buildings. And if you just look narrowly at the product manufacturing piece, today, we can build static twins with tandem dynamic twin capabilities that help define how a factory works with FlexSim and ultimately look at the operations with fusion operations.

But what MaintenX brings us is the field execution and data piece, the actual asset data piece. They are the fastest growing company in the space. They are rapidly consolidating a lot of the space onto their platform, and there is a reason for that. And what they are bringing to us is not only that expertise at the point of work where the assets are functioning, They are bringing to us a rich set of data about asset performance in the real world. This data is going to help us move along that spectrum from static to dynamic to predictive.

And mid sized and small manufacturers are going to be a big place where we are going to be testing this out. So it is an exciting growth opportunity, and it has a lot of potential for Autodesk and it kind of completes that whole vision of design, make, operate, and closing that loop in that data and context layer. That makes a ton of sense.

Analyst (Saket Kalia): Maybe for my follow-up, you know, Janesh, I think you compared Autodesk's entrance into operations to your entrance into construction, which a lot of us on the call remember years ago. Maybe the question is, how has that experience, in construction maybe informed this expansion into operations?

Janesh Moorjani: Does that make sense? Yeah. It does. And maybe I will ask Andrew to comment a little bit on the learnings from the construction experiences. A lot of that happened even before I arrived, and then I can talk a little bit about how we translated that over to me next.

Andrew Anagnost: Yeah. Alright. Thank you, Janesh. it is-- it is another good question, Saket. Let me let me kinda start with this. When we started construction, we took a set of assets that we had in preconstruction planning and in collaboration with 3D models in the cloud and some early assets we had around punch list and field assets. And then we brought in an experienced leader at Autodesk who knew how to scale a new business. Jim Lynch, in particular, he scaled the Revit business inside of Autodesk and was a critical part of that growth. We brought in people like Paul Blandini that were also part of that.

And then what we did is we engaged in a series of acquisitions that expanded us in the places where we did not have coverage. Field execution was a key area in that space. Look at what we are doing with MaintenX. Field execution, field data, where things are happening on the site. This enabled us to do a lot of automations and capabilities around request for information flows and all the things associated with construction. We then went on to expand that and consolidate it into a group. We ran it independently inside the company. Look at the results. Alright? 5 years ago, we spent about $1.8 billion on acquisitions.

Today, you look at this business today, going back 12 months, it is worth $600 million in revenue, and it is growing north of 20%. So pretty impressive results. So how does this translate into what we are doing with operations? I think we can actually do a lot more in operations. Today, we are putting an experienced leader that scaled fusion in its early days. that is that is Steven Hooper. We are bringing back Paul Bhanini into the into the operations team. He has a lot of the chops from that.

We are bringing in a best in class field execution on-site maintenance and asset aware solution into our portfolio, MaintenX, a great team that knows how to build this kind of technology, a great team that is already built AI driven workflows based on some of that data. And then we are going to work to incrementally bring in some smaller acquisitions over time that round out the solution. So follow the same playbook, integrate the things that we need to integrate quickly, hold back in the things that drive the health of business, run the same playbook, and I think we are going to have even more impressive results than what you have seen with construction. Great to hear.

Thank you.

Operator: Thank you. Your next question comes from the line of Jay Vleeschhouwer with Griffin Securities.

Analyst (Jay Vleeschhouwer): Thank you. Good evening. Andrew, among the critical technical ingredients of your growth strategy are, of course, platform services plus the AEC data model and the manufacturing data model The question is, could you talk about production deployments of any or all of those among your customers in AUC and manufacturing?

Andrew Anagnost: And apropos of today's news, how do you see the MaintenX acquisition fitting technically into those architectural initiatives around data models Then I will ask my follow-up. Yeah. So as you know, the usage of our APIs and the data model and the manufacturing data model by our customers continues to go up. Month after month after month. They are using it to provide real solutions. We are actually monetizing some of API usage today.

We continue to create granular solutions for our data and granular capabilities, All of these are tools that our customers will be able to plug into, but that we also plug into to create some of the agentic workflows that we are doing for our customers. So it is really important to look at the progress we are doing there. When you look at MaintenX, it brings another piece of granular data. Asset performance data into the cycle. This is actually gonna be valuable for some of our customers to actually build new businesses on from our stack.

So our goal is our customers should be doing more projects, bidding on more projects, winning more projects, and getting a larger slice of the life cycle of the built world. This is another way we enable this. Our customers are gonna be able to expand their offerings to their customers through some of the new types of granular data we will be able to offer through the asset the asset layer as well. So it is another way of rounding things out, not only for our customers, but for us as well. So it is going to be pretty exciting.

Analyst (Jay Vleeschhouwer): Okay. Another technology question. As you are aware, there was a very interesting AEC industry conference 2 weeks ago in London which had many themes relevant to the company. 1 of which I thought was quite interesting was the theme among many customers that presented of developing their own tools to either supplement commercially available tools, potentially even just use their own tools for their design and engineering Could you talk about that potential phenomenon of customers developing at least in AEC, some of their own homegrown tools?

Andrew Anagnost: We absolutely want them to do this, Jay. You know, we have a long history of enabling our customers to expand our offerings to build tools that tips fit for their solutions. Now when you look at the agentic world, remember though that there is this important critical mass around data and context that extends beyond any single customer. No single customer is gonna have enough data to fully understand the scope and impact of a project nor will they have the entire context of the project. Remember, context for a project flows across companies and across silos within a particular project. It is an ecosystem problem.

And we are well positioned to orchestrate the ecosystem at the data and context layer. We are gonna add a lot of model capability that is really above and beyond what any of our customers can build on their own. But we encourage them and we want to enable them to build vertical capabilities on top of this that make their environment and their practices even more rich and more powerful. But they are gonna need a strong platform to do that, and that strong platform is going to be built on the data, context, and expertise that we bring to play. Okay. You, Andrew.

Operator: Thank you. Our next question comes from the line of Adam Borg with Stifel.

Analyst (Adam Borg): Awesome. And thanks so much for taking the questions. Maybe, Andrew, for you, in our channel check conversations, we did not hear about partners talking about a degree of disruption from the go to market changes you guys made.

Andrew Anagnost: I know you talked about changes really being in line with expectations. So I was hoping maybe you could go a step deeper about, you know, how those changes have played out and any future risk of further disruptions and how that is and maybe for Janesh to remind us how that is contemplated in the guide. Yeah. So remember, let's talk about the goals of these changes. Right? The goal is to focus the entire ecosystem on new business capturing and growing new businesses. So we shifted away from renewals as a big part of the partner business to new businesses as an emerging bigger part of partners business.

And we also move to automating some of the processes around renewal so that we could get better renewal performance and more focused on the new business. Actually, we saw that in the quarter. We saw strong renewal performance, and we saw exactly the kind of weak new performance we expected as people shift over to this. We expect this to all work its way out over time. And the channel partners get their hands around how their teams are reconfigured to build out new business. And we are looking to see we are looking forward to seeing the results. Janesh, do you wanna comment on anything?

Janesh Moorjani: Yes. I will just add that Q1 played out in line with the assumptions that we had baked into the guidance for the new subscription We saw strength everywhere else that contributed to the strong output outperformance that we had here in the quarter. And then looking ahead, we have assumed just a gradual normalization, not a step-function improvement looking out to Q2 to Q4. Ultimately, the objective is to emerge with an organization that is much more effective at driving new business growth over the long term, and that sets us up nicely for the future.

Analyst (Adam Borg): that is great. And maybe just as my quick follow-up, you know, it is really nice to see the consistent year on year growth by geography, Americas, EMEA and APAC, all to 17%. Maybe just drilling deeper into EMEA, just given a lot of noise in that in that market more broadly, to call out there in terms of headwinds and opportunities? Thanks so much.

Janesh Moorjani: Yeah. I think the biggest drivers for EMEA were really some of the timing and comparison dynamics that you see. EMEA had strong upfront revenue last quarter, and last quarter was also the peak of the new transaction model tailwind in EMEA. And, if you recall, EMEA lagged The Americas by 1 quarter. So that is what you are really seeing play here in the numbers for Q1. The other thing I would just touch on also is that we knew going into the year that sales reorganization would just take longer to operationalize in certain parts of EMEA.

Given local labor laws and consultation requirements that timing was contemplated in the guidance, but we also see that reflected in the EMEA performance overall. But broadly, EMEA is a very important region for us, and we continue to see great long term opportunity both across both mature and emerging markets there. Really helpful. Thanks again. Yep. Thank you.

Operator: And our next question comes from the line of Brent Thill with Jefferies. Thank you. Just on the acquisition, I if you kind of roll forward the 50% growth, you are paying, you know, 18x next year's revenue.

Analyst: And I think many are asking, you know, a world where software multiples have collapsed pretty significantly, You are you are paying a pretty big premium, and I am assuming there is a reason for that premium. So maybe if you could share your thoughts on how you got to the number.

Janesh Moorjani: Yeah. I am happy to start, and maybe Andrew can add as well. But when we looked at maintenance, Brent, for us, we looked at it as a high growth market leading platform. it is really defining the next generation of operation software. it is a large strategic adjacency for us, so it expands our TAM. But importantly, beyond the stand alone strength of the business, it also gives us very rich operational data and workflow context that really allows us to close the entire loop across design make and operate, and it is strengthens our overall AI foundation as a combined company. So it really enables higher value workflows over time.

We talked a little bit earlier about the construction playbook that we used, and Andrew mentioned these numbers. But in construction, we deployed about $1.8 billion of capital through acquisitions, and we built a business that is close to $600 million of revenue, LTM, and that is growing more than 20% in Q1. So if you sort of, you know, think of that in a similar analogy, we expect operations to become an even bigger business than construction over time. Just given the TAM. Given the growth rate of the business, the revenue multiple will compress pretty quickly on a forward basis as the business scales.

Andrew Anagnost: Yeah. I think Janesh said it pretty well. I will just add on and double down on this notion of the fact that the data that we are getting about asset performance and asset life cycles is incredibly valuable to us. It allows us to move up the spectrum from the operational and the and the static and dynamic twins into the predictive world. that is going to provide a lot of value to the mid market customers we serve. it is gonna provide high value AI driven solutions that do things that most small and midsize players are not able to do without some of these tools.

So look for us to really dig deeply into that layer of this asset because it is a very important component of it for our context and data strategy. And just a quick clarification, is this the largest deal you have ever done? Is the largest deal we have ever done. Okay. Thank you so much. Thanks, Brent.

Operator: Thank you. Our next question comes from the line of Jason Celino with KeyBanc Capital Markets.

Analyst (Jason Celino): Greg. Thank you. I am just trying to understand the main MaintenX, you know, business a little bit better. And, who would be the core user? Would it be internal operations maintenance?

Andrew Anagnost: Yeah, people? And then I, you know, went on the website, and it looks like some reference customers or some consumer companies, some janitorial service companies. So do you have any overlapping customers today? Yeah. We absolutely have overlapping customers in the manufacturing sectors and machine operating sectors that do overlap with us. The core user is the person actually owning the asset who has a high concern about uptime and managing and maintaining that uptime. It allows them to get the maintenance people out into the facility, track what needs to be fixed, track how it needs to be fixed.

And the value we are going to bring moving forward is we are going to be able to turn that into a predictive cycle and a closed loop into being able to allow them to optimize facilities. I think the greatest example you can use here is what in a small and midsized factory where they are trying to highly automate their processes and try to create a digital twin of the operational capabilities of their factory and reconfigure that factory on a regular basis and keeping it running as much as they can, that is going to be a big opportunity for us with regards to the predictive twin capability.

Analyst (Jason Celino): Okay. And then maybe just a clarification for Janesh. I think in the prepared remarks or the PowerPoint, you mentioned that you were maintaining the fiscal 29 operating margin framework. Did that original framework contemplate a strategic acquisition like this? And I guess, how would you look to absorb and maintain the margin framework, you know, with this asset and potential future tuck ins? Thanks.

Janesh Moorjani: Yeah. Jason, it is a great question. When we laid out that framework, we had assumed that we could achieve that objective under a range of different kinds of scenarios, which included potential acquisitions as well. Ultimately, the business is generating a healthy amount of operating leverage and we use that operating leverage to both achieve margin goals as well as reinvest back in the business to drive sustainable and durable growth for the future. Some of that can be organic. Some of that can be inorganic, and that is what you have seen us do over here today. While MaintenX itself does not have the margin profile that Autodesk does.

We are going to absorb that business into and stay true to our margin goals. While continuing to balance investments that we need to make in the business as well. Perfect. Thank you.

Operator: Thank you. Thank you. And our next question comes from the line of Taylor McGinnis with UBS.

Analyst (Taylor McGinnis): Yes. Hi. Thanks so much for taking my questions. Janesh, if I ran my math right, it looks like the guide for adjusted constant currency billings implies around high single digits growth for the remainder of the year. And I think revenue growth is closer to 10% or so. So could you just unpack the delta there? Was there any pull forward of deals into 1Q? Or is that just a reflection of the impact from some of the sales changes? And then secondly, not to throw too many questions at you, but I believe you made a comment about a benefit from price realization to billings, but that also weighing on unbilled deferred revenue growth.

So I am wondering if you could just pack that unpack that a little bit more specifically with RPO growth of 9%.

Janesh Moorjani: Yeah. I am happy to touch on both of those, Taylor. So in terms of the overall growth profile for both billings and revenue, keep in mind, it is really the effect of the sales reorg that we had where you see the effect show up in billings first, and then you see the effect show up in revenue over time. So that is 1 piece that you need to just keep in mind, and our guidance largely reflects that in terms of the pace of normalization of new business productivity coming back into the, into the sales as we go sales team as we go through the reorganization and complete the operate.

Of that. that is probably the biggest piece to think about with respect to the to the guidance. And then in terms of the RPO and the price realization, RPO can move around in any period. It is a affected by a number of things, including contract duration, timing, currency, And in our case, as you know, it is also affected by the impact of the new transaction model, which is now starting to wear off. And so in Q1, what we saw was RPO growth was a bit slower, in part reflecting slightly shorter contract durations. That follows the change that we had been making to reduce discounting on multiyear contracts.

So when you do that, that represents a really good economic trade off for us because the price realization is longer term over multiyears when we go out and secure the renewals in the future. Those will be at the undiscounted levels or the lower discounted levels compared what we had in the past. So that is a longer term play. But it does impact the RPO and the particularly the unbilled deferred RPO in the in the near term. But it is a good economic trade off for us and 1 that we consciously made. So, customer relationships are healthy, and we have a strong foundation of renewal rates.

So we feel pretty good about the underlying momentum of the business. Perfect. Thanks so much.

Operator: Thank you. Our next question comes from the line of Alexei Gogolev with JPMorgan.

Analyst (Alexei Gogolev): Hello, everyone. Janesh, could I build on the previous question, please? So when customers consider their contracts, what drives the decision between multiyear and annual contracts?

Janesh Moorjani: Is it there any element of budget uncertainty or some perceived switching flexibility or maybe cloud and AI road maps And does it differ by AECO, IECO or manufacturing or maybe by enterprises versus SMB? Yeah. it is a great question, Alexei. it is it is less about budgets or anything of that sort. You know, for us, I think it is really just a couple of issues. 1 that I just touched on, which is that we reduce some of the discounting on multiyear contracts.

Because we have such a strong foundation on strong renewal rates, and we felt confident that it was the right thing to do for the business long term, And the second thing that I will call out is that there can be sort of timing issues and cohort mix issues as well EBAs tend to be 3 year contracts. A lot of our product subscriptions tend to be 1 year contracts. And so just depending on some of the mix of what is up for renewal and what is not up for renewal, you can see some level of fluctuation there too. that is all just, you know, normal and part of the, the ongoing business.

So there was nothing unique or specific that I would call out Other than those factors here in Q1. Okay.

Analyst (Alexei Gogolev): Thank you. And Andrew, you referenced the assistance and MCP infrastructure and the harness layer for frontier models, what is the near term product roadmap? Where it shows up first and what customers can do that they could not do before?

Andrew Anagnost: Yeah. So there is-- there is numerous things that we built into the layer that customers are gonna be able to do that they have not done before. Coming out very shortly is what is called the building layout explorer. it is going to be built into the form of building design suite. It allows people to explore the layout of a building within the framework of the envelope for the building that they are proposing and that they are exploring. These are the kind of capabilities that are built off of models that we have created ourselves.

That allow customers to do things that they would not be able to do dynamically with some of the other kind of horizontal large language model tools. We are also gonna be building in additional capabilities that bring in some of our vertical tools into the assisted work so that they can actually dynamically create some user interfaces to solve particular problems for them. Again, gonna be unique to the assistant.

I do not wanna say too much because we are gonna have a lot of announcements at AU that kind of tell people where we are going, but you are gonna see us add a lot more to the layer between the frontier models and what the assistant does and some of the capabilities that Autodesk builds on top. Thank you, Andrew.

Operator: Thank you. And our next question comes from the line of Joe Brunk with Baird.

Analyst (Joseph Vruwink): Hi. Great. Thanks for taking my questions. Does something like Claude for creative work and Autodesk involvement become a channel for new customer, new user acquisitions, to the point where you would actually see new subscriber and seat growth accelerate. Or maybe if it is not clogged for creative work but more holistically about what you are doing with MCP servers, Does this become a format where the usability around your models make the applications more applicable? to people that would not naturally be key users of Autodesk?

Andrew Anagnost: Whenever you meet the customers where you are at, you bring new customers into the ecosystem. Right? And part of part of what we are doing is to meet the customers where they are at, We pull them into the ecosystem, and then they are able to explore the capabilities that we are able to help them finish above and beyond what they do in some of these other layers. So this is absolutely a channel for us. But it is also meeting the customers where they are at today.

Analyst (Joseph Vruwink): Okay. And then on MaintenX so, so, you know, moving downstream, to the operations and connecting the asset life cycle, there is other vendors that have also put these pieces together. I think there is maybe been a range of success and maybe the pieces end up functioning separately. But there is just not good cross pollination and kind of upstream design ends up working, but it does not connect downstream. How does Autodesk maybe think about tackling this proposition differently than it is been tackled before?

Andrew Anagnost: Certainly, we are aware of all those other explorations in this space. You know, 1 of the things I wanna make sure that you understand here is it is not just about the maintenance piece and the and what we are acquiring today. it is about the whole experience around how a digital twin actually operates for our customers in their real world settings. So we are actually building out capabilities that circles the whole bunch of the problem. And I gave some of those examples in the factory space. But also when you look at some of these other solutions and why MaintenX has managed to grow so fast, a lot of these older solutions required custom solutions.

They were dependent on other platforms like Salesforce, for instance. And they were narrowly focused on an ecosystem of vendors that were supported by the particular players. MaintenX is a complete heterogeneous solution. Every asset that the customer has to manage can be managed within an environment like MaintenX, which I think is a very important differentiator as we move here. But you combine that also with what we are trying to do with the end to end where you are defining the twin. You are you are running things in the twin, you are moving into optimizing and workflows. it is something that other vendors have not have not done and have not been able to do successfully.

And again, the reason MaintenX has been successful as it is in consolidating the space is because they cracked the code. On how to drive some of these solutions in and out of scale. Just add there is, you know, you can see the evidence of these differentiators at Andrew talked about in the growth profile of Maintenex compared to the growth profiles of some of those other companies. Thank you.

Operator: Thank you. Your next question comes from the line of Ken Wong with Oppenheimer.

Analyst (Ken Wong): Fantastic. Thanks for taking my question. First 1 for you, Janesh, I just wanted to kind of clarify the billings guide Constant currency billings growth was raised a bit at the low end, but the constant currency adjusted for transaction model was unchanged.

Janesh Moorjani: Is that just rounding error and the underlying confidence of billings is higher, or are you trying to say it is it is neutral? Yeah. I think that is just largely rounding. You know, we because we guide in whole percentages, we focused on the total dollars of billings. We did not see any big shift in terms of the impact of the new transaction model. I think that is just largely rounding right there.

Analyst (Ken Wong): Got it. And then Andrew, just on the go to market changes, it sounds like kind of within the range of outcomes. Would you say it is just kind of typical learning curve stuff?

Andrew Anagnost: Or I remember last year, there was maybe some invoicing and billing dynamics that you guys had to iron out those kinks. Like, are there any notable items that you guys feel you need to course correct? No. Nothing we did not plan for in the cycle. When you move sales incentives around and move sales roles around, you are obviously gonna go through a cycle of absorbing those changes and absorbing those things into your pipeline. You are gonna go through some pipeline disruption and all the things associated with that. These are things we factored in.

So we are not seeing anything we did not expect like, we did not discuss during the new transaction model change. it is all things we baked into the cycle and into the change management. Okay. Perfect. Thanks, guys.

Operator: Thank you. Our next question comes from the line of Michael Turrin with Wells Fargo.

Analyst (Michael Turrin): Hey, great. Thanks. Good afternoon. I appreciate you taking the question. As you are obviously well aware, the company's work through a fairly notable and impressive transformation over the past few years. Maybe just a 2 part question for me. You could just provide us with kind of a grounding update on where the company stands in terms of technology replatforming and evolution of the pricing model and how that positions the company competitively from your perspective? And then as a follow on, just maybe also speak to confidence in layering MaintenX into that, just confidence in the foundation you have set as this being the right point to kinda bring something new into the fold there. Thanks very much.

Andrew Anagnost: Yeah. Michael, that is that is a really relevant question. So as you know, we have made a lot of investments in kind of changing the company and preparing it for the future at various levels. 1 of the things we have also done very early on is we prepared for a mixed blended world of subscription and consumption. it is 1 of the things I think we are well ahead of a lot of other companies in the application space.

So we already have offerings that allow us to provide subscriptions for people that are heavy users, blended consumption models like flex for people that are occasional users, and we also have ways and means by which to blend these things together. We have capacity models, project based pricing models. So we have a lot of various models that allow us to meet the customer at the project level. And also meet them at the usage of AI in ways that maybe other players in space do not, which I think is really important. We have also built the systems and processes that allow us that.

've also built the systems and processes that allow us to bring in acquisitions and integrate them into our processes more effectively. Now MaintenX is a is a subscription model. And they are moving into the consumption space moving forward. So they are a natural fit for some of the capabilities that we already have. So we feel pretty very confident about how we can integrate them and move them into our processes. But we have come quite a ways up in the curve, and we feel pretty good about where we are with regards to being ready for the new world in terms of some of the pricing models and the packaging models that are associated with that.

Thanks very much.

Operator: Thank you. And our next question comes from the line of Joshua Tilton with Wolfe Research.

Analyst (Joshua Tilton): Hey, guys. Thanks for sneaking me in. Can you hear me?

Janesh Moorjani: Yeah. We can, Joshua. Go ahead.

Analyst (Joshua Tilton): Joshua? Hey, guys. Can you hear me? We can now. Go ahead, please. Ah, perfect. Amazing. Bit of an awkward pause there for a second. Maybe just 2 quick ones for me. First 1 is just something we noticed is, you know, there was a rebranding or repackaging of Autodesk Build on the eStore to Forma Build. And along with that, it feels like the pricing of that of that offering is I do not know if significantly is the right word, but mid teens cheaper than it was previously.

Is there any change in the strategy that you guys are seeing in construction around how you are using price as a lever to entice customers, especially since the offering itself is pretty good? And then I have a follow-up for that.

Andrew Anagnost: Yeah. So you are actually conflating 2 things there, Joshua. So let me help you with that a little bit. Sorry. Let me let me help you with that a little bit. So the rebranding of everything under Forma is to acknowledge that we have an end to end solution that is entirely cloud native from design, preconstruction planning, all the way into construction. So everything is branded under the formal layer. So formal for construction is now connected to directly through data management to site design and Forma Building Design. The offering you are talking about is form of Build Essentials. Build Essentials is a version of Build designed to reach the small and mid sized general contractors.

So it is an effort to expand our footprint down market at a price point and a capability point that works. So it is essentially a smaller version of our Build. It fits for the people who are participating in the in the in the in the project more broadly. that is what that price point is. it is basically going to expand our footprint and our reach into the entire ecosystem. And it is designed to actually accelerate some of our expansion into other parts of the construction process.

Analyst (Joshua Tilton): That makes a lot of sense. Maybe just 1 more and I am going to preface this with we have a ton of prints tonight. I have been on a number of calls. So if it is been addressed already, I apologize. But if I step back you know, you guys just put out a really solid quarter. I do not think I have gotten anybody really picking at the results themselves. But then we also have this deal that you are announcing coming into the fold, and it is pretty sizable.

I think if there is 1 piece of feedback that I have been getting since results dropped, it is just, you know, elsewhere in our coverage or in our software space where companies have tried to layer in some pretty sizable M&A recently, You know, it is been for it has not exactly gone well. Is there anything that you can maybe, you know, give us or communicate to us that can increase the confidence that now is the right time to make this acquisition, that the core business is still healthy and nothing has changed there, and that, you know, this is the right time to be making a deal of this size, if that makes sense.

Andrew Anagnost: Yeah. So we are a very disciplined company when it comes to acquisitions. And I wanna I wanna go back to what we did with construction because, again, we are running a very similar playbook that we do with construction. And, frankly, over a 5 year period, a lot of the pricing dynamics and all the operating dynamics are actually very similar when you adjust for the 5 year difference in timeframe. So we are super disciplined about these things. We do work like this when we know we can absorb it, and we know we can execute on it.

The timing is right, because this is the time when you want to expand the breadth and depth of your data and context layer across the entire life cycles. The broader and deeper your context and data layer, the more competitive you are in the future agentic world because the more workflows you can automate, the more value you can bring to customers. So the timing is right for us. Super disciplined about processes like this, and we have we have been waiting to do this and planning to do this for quite some time. Janesh, want to add anything to add?

Janesh Moorjani: The only thing I would add in terms of thinking about this versus the broader Autodesk business is keep in mind that at the time of close, maintenance will still be a very small percentage of Autodesk overall. So it is not gonna be enough to influence the overall core business growth rates in a meaningful way in the initial stages. And then just to help you understand how the MaintenX business is performing, we will give you appropriate information to understand that. So in the early days, we will give you good information on that so you can understand how it is contributing to Autodesk.

But just given how small it is as a percentage overall, I would not assume a permanently standalone quarterly reporting framework on it. But we will certainly be transparent in the early quarters as we bring it into the company. Thanks. Thank you.

Operator: And our next question comes from the line of Tyler Radke with Citi.

Analyst (Tyler Radke): Yeah. Thank you for taking the question. Can you hear me okay? Yes. We can. Okay. Great. Andrew, I am I am curious if you talk with your big EBA customers, what is sort of their appetite to allow, Autodesk to use their data in terms of AI and how have those conversations evolved particularly considering the, you know, exciting road map and all the innovation you are doing?

Andrew Anagnost: Yeah. You know, our relationship with our customers is 1 of transparency and choice. We are very transparent about what we are doing with their data and how we are using it and where we are using it and where we are gonna give them choice for opting out of how we use their data. That relationship has been highly effective. it is resulted in robust conversations with a with a lot of customers, and I think it is resulted in good outcomes for them and for us. Everybody wants the automations we are able to deliver.

A lot of customers realize that they cannot deliver some of the things that they really need at the scale that they are at. As long as we continue to lean into transparency, be very straightforward with our customers and direct about what we are doing and what we are not doing and offering some level of choice, we have been having a very productive relationship with all of these customers and really good discussions.

Operator: Thank you. Thank you. And our next question comes from the line of Clark Jeffries with Piper Sandler.

Analyst: Hello. Thank you for taking the question. I wanted to follow-up on the discussion about MaintenX kind of graduating from subscription to subscription plus consumption. Maybe you could preview for us what that might look like for that business model. How far along are they? Is it meaningfully contributing to the growth rate, And then a follow-up, just a lot of Autodesk's focus has been on the AEC segment and the manufacturing segment. I think there is really an opportunity with MaintenX to expand to a lot more owner operator presence And so after spanning from manufacturing to a lot of those other industries that you mentioned in terms of critical infrastructure or commercial real estate?

Do you see a investment in go to market that will happen to make this asset extend into some of those other verticals, beef up the Salesforce to kind of grow the owner-operator presence? Thank you.

Andrew Anagnost: Yeah. First off, you know, it is it is far too early to look at MaintenX through the lens of consumption and things associated with consumption. They are very early in that journey, They have got a bunch of AI driven capabilities that will evolve over time.

Now with regards to the to the larger question about branching out into those other segments, again, following very much what we did in construction, we built an entire go to market machinery around construction that allowed us to reach various players within the construction ecosystem. that is why we pull it out separately, and that is why we engage the way we do to make these businesses successful is that we want to make sure we are building the ecosystem, not just the product ecosystem, but the go to market ecosystem that allows us to reach the various customers. You heard us kinda talk pretty vocally about the first pillar being probably in the product manufacturing space.

But remember, we already have a footprint in water operations, and we already have a footprint in building operations as well. Our desire is absolutely to get deeper into the owner operator workflow because we feel that converging them and bringing them in closer to the entire process is gonna be valuable to us. Valuable to them, and valuable to the rest of our customers in our ecosystem. Thank you very much.

Operator: Thank you. That is all the time we have for Q&A today. I would like to hand the call back over to Vice President, Investor Relations, Simon Mays-Smith, for any closing remarks.

Simon Mays-Smith: Thank you, Andrew, and good to speak to everyone. We will look forward to chatting to many of you on the road over the coming weeks. If you have follow-up questions, please ping me or my team, and we will look forward to chatting on our next quarter's earnings. Thanks very much. Goodbye.

Operator: Ladies and gentlemen, thank you for participating. This does conclude today's program, and you may now disconnect.