Autodesk, Inc.

Thank you for standing by, and welcome to Autodesk's third quarter fiscal year 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. To remove yourself from the queue, you may press star 1-1 again. I would now like to hand the call over to VP of Investor Relations, Simon Mays-Smith. Please go ahead.

Thanks, Operator, and good afternoon. Thank you for joining our conference call to discuss the third quarter results of Autodesk Fiscal 24. On the line with me are Andrew Anagnost, our CEO, and Debbie Clifford, our CFO. Today's conference call is being broadcast live via webcast. In addition, a replay of the call will be available at autodesk.com forward slash investor. Following this call, you can find the earnings press release, slide presentation, and transcript of today's opening commentary on our investor relations website. During this call, we may make forward-looking statements about our outlook, future results and related assumptions, products and product capabilities, business models and strategies. These statements reflect our best judgment based on currently known factors. actual events or results could differ materially. Please refer to our SEC filings, including our most recent Form 10Q and the Form 8K filed with today's press release for important risks 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 numeric or growth changes during this call 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 or Excel financials and other supplemental materials available on our investor relations website. And now I will turn the call over to Andrew.

Thank you, Simon, and welcome everyone to the call. Resilience, discipline and opportunity again underpinned out of the strong financial and competitive performance despite continued macroeconomic policy and geopolitical headwinds. Renewal rates have remained strong and new business trends have been largely consistent for many quarters. Our subscription business model and our product and customer diversification enable that. It means that accelerating growth in Canada has balanced decelerating growth in the United Kingdom, that growing momentum in construction has balanced deteriorating momentum in media and entertainment, and that strength from our enterprise and smaller customers has balanced softness from medium-sized customers. Our leading indicators remain consistent with last quarter, with growing usage, record bid activity on Building Connected, and cautious optimism from channel partners. Disciplined and focused execution and strategic deployment of capital through the economic cycle enables Autodesk to realize the significant benefits of its strategy while mitigating the risk of having to make expensive catch-up investments later. As Steve said at Investor Day, we introduced a new transaction model for Flex, which gives Autodesk a more direct relationship with its customers and more closely integrates with its channel partners. We began testing the new transaction model across our product suite in Australia a couple of weeks ago. Assuming the launch proceeds as expected, in fiscal 25 and 26, we intend to transition our indirect business to the new transaction model in all our major markets globally. In the new transaction model, partners provide a quote to customers, but the actual transaction happens directly between Autodesk and the customers. The new transaction model is an important step on our path to integrate more closely with our customers' workflows, enabled by, among other things, Autodesk platform services and our industry clouds, Fusion, Forma, and Flow. Autodesk, its customers, and partners will be able to build more valuable, data-driven, and connected products and services in our industry clouds and on our platform. The new transaction model is consequential. many of you will have seen other companies adopting agency models and will already understand the math. In the near term, the new transaction model results in a shift from contra revenue to operating costs that provide a tailwind to revenue growth, while being broadly neutral to operating profit and free cash flow dollars, and mechanically results in percent operating margins taking a step or two backwards. Over the long term, Optimization enabled by this transition will provide a tailwind to revenue, operating income, and free cash flow dollars, even after the cost of setting up our building platform. And finally, there is opportunity from developing next generation technologies and services that deliver end-to-end digital transformation of our design and make customers, and enable a better world designed and made for all. I was at Artis University last week, alongside more than 10,000 attendees, where we announced Autodesk AI, technology we've been working on and investing in for years. We showed how our design and make platform will automate non-creative work, help customers analyze their data and surface insights, and augment their work to make them more agile and creative. But there is no AI without actionable data. And that's why we're also investing in Autodesk platform services, which are accessible, extensible, open via our APIs. Autodesk platform services offer several critical capabilities, but data services are the most impactful. These provide the tools that make data actionable. And at the core of our data services is the Autodesk data model. Think of the Autodesk data model as the knowledge graph that gives customers access to the design, make, and project data in granular, bite-sized chunks. The data chunks are the building blocks of new automation, analysis, and augmentation that will enable our customers and partners to build more valuable, data-driven, and connected products and services. Autodesk remains relentlessly curious with propensity and desire to evolve and innovate. Time and again, well-executed transformation from desktop to cloud, from perpetual license and maintenance to subscription, has added new growth factors, built a more diverse and resilient business, forged broader, trusted, and more durable partnerships with more customers, and given Autodesk a longer runway of growth and free cash flow generation. With our transformation from file to data and outcome, from upfront to annual billing, and from indirect to direct go-to-mark motions, we are building an even brighter future with focus, purpose, and optimism. Our customers are also committed to transformation. And Autodesk is deploying automation to increase their success in an environment with ongoing headwinds from material scarcity, labor shortages, and supply chain disruption. That commitment was reflected in Autodesk's largest ever EBA signed during the quarter and record contributions from our construction and water verticals to our overall EBA performance. I will now turn the call over to Debbie to take you through our quarterly financial performance and guidance for the year. I'll then come back to update you on our strategic growth initiative.