This presentation contains forward-looking statements that involve risks and uncertainties, including quotations from management, statements in the paragraphs under "Business Outlook" above, statements regarding reallocating internal resources, our new transaction model and sales and marketing optimization, statements about our short-term and long-term goals, statements regarding our strategies, market and product positions, performance and results, statements regarding our share repurchase programs, and al ...

Design software maker Autodesk said Thursday that it will lay off 1,350 employees, which works out to 9% of its workforce.The job cuts follow a series of large headcount reductions across the tech industry. In January, Meta said it would let go of 5% of its workers, and earlier this month Workday, which sells human resources and finance software, announced an 8.5% decrease. In November, chipmaker AMD said it would let go of 4% of its staff members. Google this week also announced cuts to its human relations ...

Financial Performance - Total revenue for Q4 FY25 increased 12% to $1.64 billion, with recurring revenue representing 97% of total revenue[4] - Total net revenue for the three months ended January 31, 2025, was $1,639 million, a 11.6% increase from $1,469 million in the same period of 2024[44] - Subscription revenue reached $1,522 million for the three months ended January 31, 2025, up 13.6% from $1,339 million in the prior year[44] - Net income for the fiscal year ended January 31, 2025, was $1,112 million, representing a 22.7% increase compared to $906 million in 2024[44] - Autodesk's net income for the fiscal year ended January 31, 2025, was $1,112 million, an increase of 23% compared to $906 million in 2024[46] - The company reported net cash provided by operating activities of $1,607 million for the fiscal year 2025, up from $1,313 million in 2024, representing a 22% increase[46] - Free cash flow for the fiscal year 2025 was $1,567 million, compared to $1,282 million in 2024, marking a 22% increase[50] Revenue Growth - Total billings rose 23% to $2.11 billion, indicating strong demand for Autodesk's offerings[6] - Design revenue reached $1.36 billion, a 12% increase, while Make revenue grew 28% to $176 million[6] - Total subscriptions increased by approximately 516,000 to 7.79 million, reflecting robust customer acquisition[10] - Remaining performance obligations (RPO) indicate a strong future revenue stream, with the current amount expected to be recognized in the next twelve months[33] Operating Margins - GAAP operating margin improved to 22%, up from 21% in the previous year, while non-GAAP operating margin increased to 37% from 36%[4] - Non-GAAP operating margin for the fiscal year 2025 was 36%, compared to 36% in 2024, indicating stable operational efficiency[49] - The company anticipates a GAAP operating margin of 21% to 22% for FY26, with a non-GAAP operating margin forecasted at 36% to 37%[52] Cash Flow and Assets - Cash flow from operating activities for Q4 FY25 was $692 million, an increase of $255 million compared to the previous year[6] - The company’s cash and cash equivalents decreased to $1,599 million as of January 31, 2025, down from $1,892 million a year earlier[45] - Total assets increased to $10,833 million as of January 31, 2025, compared to $9,912 million in the previous year, indicating growth in the company's financial position[45] Workforce and Restructuring - The company announced a restructuring plan resulting in a 9% workforce reduction, affecting approximately 1,350 employees, with anticipated pre-tax charges of $135 million to $150 million[4] - The company incurred $683 million in stock-based compensation expense for the fiscal year 2025, slightly down from $703 million in 2024[46] Future Projections - For FY26, Autodesk projects total billings between $7,060 million and $7,210 million, and revenue between $6,895 million and $6,965 million[17] - The first quarter FY26 revenue guidance is set between $1,600 million and $1,610 million, with GAAP EPS expected to be between $0.76 and $0.90[16] - For Q1 FY26, Autodesk expects GAAP EPS to be in the range of $0.76 to $0.90, with non-GAAP EPS projected between $2.14 and $2.17[52]

Core Points - Autodesk, Inc. announced that Mary T. McDowell will not seek re-election at the 2025 Annual Meeting of Stockholders, having served on the Board since March 2010 [1] - The Board Chair, Stacy Smith, expressed gratitude for McDowell's contributions, highlighting her leadership in driving significant growth, profitability, and shareholder value over the past 15 years [2] - Autodesk is undergoing changes in its Board composition, with Lorrie Norrington also not standing for re-election, while John Cahill and Ram Krishnan are joining the Board, enhancing its expertise [2][3] - The company is committed to maintaining a strong Board with independent and engaged directors, ensuring effective oversight of its strategic execution [3] Company Overview - Autodesk provides technology solutions for designers, engineers, builders, and creators, enabling them to design and make a wide range of products and structures [4] - The company's Design and Make Platform leverages data to enhance insights and automate processes, empowering customers to achieve better outcomes for their businesses and the environment [4]

Financial Results - Autodesk is set to release its fourth-quarter financial results on February 27, 2025, with expected earnings of $2.14 per share, an increase from $2.09 per share in the same period last year [1] - The company projects quarterly revenue of $1.63 billion, up from $1.47 billion a year earlier [1] Full-Year Projections - For the full year, Autodesk anticipates revenue between $6.12 billion and $6.13 billion, with earnings expected to be between $8.29 and $8.35 per share [2] Stock Performance and Analyst Ratings - Autodesk shares closed at $285.67, reflecting a gain of 0.7% [2] - Analysts have varying ratings for Autodesk, with Rosenblatt maintaining a Buy rating and a price target of $325 [3] - Baird raised its price target from $330 to $345 while maintaining an Outperform rating [3] - Stifel increased its price target from $340 to $360, also maintaining a Buy rating [3] - Citigroup raised its price target from $358 to $361 while keeping a Buy rating [3] - HSBC downgraded the stock from Buy to Hold with a price target of $290 [3]

Core Viewpoint - Autodesk is set to report its fourth-quarter fiscal 2025 results on February 27, with expectations of revenue growth and potential margin pressures due to a new transaction model [1][6]. Revenue Expectations - Autodesk anticipates revenues between $1.62 billion and $1.64 billion for the fiscal fourth quarter, with the Zacks Consensus Estimate at $1.63 billion, indicating an 11.01% growth year-over-year [2]. - The company projects non-GAAP earnings in the range of $2.10 to $2.16 per share, with the Zacks Consensus Estimate at $2.13 per share, reflecting a 1.91% year-over-year increase [3]. Recent Performance - In the last reported quarter, Autodesk achieved an earnings surprise of 2.84%, consistently beating the Zacks Consensus Estimate over the past four quarters, with an average surprise of 5.65% [3]. Strategic Changes - Autodesk has shifted from a reseller-based sales model to a direct customer billing system in Western Europe and Japan, aiming to enhance customer relationships and create a predictable financial model [5]. - The new transaction model may lead to higher operating expenses and lower operating margins in the fourth quarter, potentially impacting profitability [6]. Subscription Revenue Growth - The company reported strong year-over-year growth in subscription revenues in the third quarter, with a net revenue retention rate between 100-110%, indicating robust customer renewals [7]. - This momentum is expected to continue into the fourth quarter, positively affecting revenue [7]. Market Challenges - Despite anticipated revenue growth, macroeconomic, policy, and geopolitical challenges may slow customer acquisition, although strong renewal rates are expected to mitigate this impact [8]. Segment Performance - Autodesk is experiencing favorable momentum in its AutoCAD, AEC, and Manufacturing segments, driven by customers consolidating solutions to optimize workflows via the cloud [9]. - The manufacturing sector shows strong demand for Autodesk Fusion, contributing to higher attach rates and average sales prices, which is likely to benefit the top line in the fourth quarter [9]. Earnings Outlook - According to the Zacks model, Autodesk currently has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell), indicating lower odds of an earnings beat [10].

Core Viewpoint - Wall Street analysts anticipate Autodesk (ADSK) to report quarterly earnings of $2.13 per share, reflecting a year-over-year increase of 1.9%, with revenues expected to reach $1.63 billion, up 11% from the previous year [1] Group 1: Earnings and Revenue Estimates - Analysts expect 'Net Revenue- Maintenance' to be $11.26 million, indicating a decline of 19.6% from the prior-year quarter [4] - 'Net Revenue- Other' is projected to reach $121.05 million, suggesting a year-over-year increase of 4.4% [4] - 'Net Revenue- Subscription' is forecasted at $1.50 billion, reflecting a year-over-year growth of 12% [4] - The consensus for 'Net Revenue- Total subscription and maintenance revenue' is $1.51 billion, indicating an 11.7% increase from the year-ago quarter [5] Group 2: Product Family Revenue Estimates - 'Net revenue by product family- M&E (Media and Entertainment)' is estimated at $87.70 million, showing a year-over-year increase of 13.9% [5] - 'Net revenue by product family- Other' is expected to reach $29.04 million, indicating a 7.5% increase from the prior-year quarter [6] - 'Net revenue by product family- AEC (Architecture, Engineering and Construction)' is projected at $795.40 million, reflecting a year-over-year growth of 14.3% [6] - 'Net revenue by product family- MFG (Manufacturing)' is likely to be $317.61 million, indicating an 8.8% increase from the previous year [7] - 'Net revenue by product family- AutoCAD and AutoCAD LT' is expected to reach $400.40 million, suggesting a 6.2% year-over-year change [7] Group 3: Billings and Market Performance - Analysts predict 'Billings' to be $2.06 billion, compared to $1.71 billion reported in the same quarter last year [8] - Autodesk shares have shown a return of -5.3% over the past month, contrasting with the Zacks S&P 500 composite's -0.5% change [8] - Autodesk holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near future [8]

Group 1: Company Performance - Autodesk's stock closed at $304.99, reflecting a +1.28% change from the previous trading day's closing, outperforming the S&P 500 which gained 0.67% [1] - Over the past month, Autodesk shares have increased by 5.68%, while the Computer and Technology sector has decreased by 0.79% [1] Group 2: Upcoming Earnings - Autodesk is expected to release its earnings report on February 27, 2025, with a predicted EPS of $2.13, indicating a 1.91% growth compared to the same quarter last year [2] - The consensus estimate for quarterly revenue is $1.63 billion, which represents an 11.01% increase from the year-ago period [2] Group 3: Analyst Estimates and Rankings - Changes in analyst estimates for Autodesk are important as they reflect the evolving business trends, with positive changes indicating a favorable outlook on the company's health and profitability [3] - Autodesk currently holds a Zacks Rank of 4 (Sell), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [5] Group 4: Valuation Metrics - Autodesk's Forward P/E ratio is 32.6, which is higher than the industry's Forward P/E of 30.31, indicating a premium valuation [6] - The PEG ratio for Autodesk is 2.21, which is in line with the average PEG ratio of 2.21 for the Computer - Software industry [6] Group 5: Industry Context - The Computer - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 143, placing it in the bottom 44% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Autodesk Inc (NASDAQ:ADSK) has seen a positive shift in stock performance following an upgrade from Mizuho, with a new price target set at $400, indicating confidence in the company's new transaction model and signs of macroeconomic recovery [1]. Group 1: Stock Performance - Autodesk's stock is currently up 3.7% at $310 after the upgrade, with a year-over-year increase of 20.2% [1][2]. - The stock has been steadily climbing since bouncing off the $280 level earlier this month, which had previously acted as a resistance point in March [2]. Group 2: Options Market Sentiment - The options market has shown a more bearish sentiment recently, with a 10-day put/call volume ratio of 3.38, ranking higher than 94% of readings from the past year [3]. - Following the bullish note from Mizuho, there has been a significant increase in call volume, with six times the typical volume observed [4]. - The February 320 call and September 370 call are the most popular options, with new positions being opened for the latter [4].

Core Insights - Autodesk has appointed Giant Spoon as its first-ever creative agency of record, marking a significant evolution in its brand strategy [1][2] - The partnership aims to enhance Autodesk's brand presence and storytelling, particularly in the context of its recent achievements, including its role in the LA28 Olympic and Paralympic Games [1][4] Company Overview - Autodesk is recognized as a leading technology company in the Design and Make industries, providing tools that empower designers, engineers, and creators [7][8] - The company aims to help users design and create a better world through its innovative platform [8] Industry Context - The Design and Make industry currently employs approximately 300 million people and is projected to reach a market value of $3 trillion by 2027 [5] - Autodesk's collaboration with Giant Spoon is intended to highlight the stories of designers and makers who utilize Autodesk's technology to impact various sectors, including entertainment, engineering, and construction [5][4] Agency Role - Giant Spoon will support Autodesk in developing major brand campaigns and creative assets, focusing on strategy, optimization, and media measurement [3] - The agency's approach is to create bold and unexpected brand appearances that challenge conventions within the Design and Make category [3][4] Strategic Goals - Autodesk's partnership with Giant Spoon is aimed at building stronger relationships with customers and enhancing service efficiency [4] - The collaboration is seen as a new chapter for Autodesk, focusing on expanding its brand narrative and increasing its visibility in the market [4]