Autodesk, Inc.

Thank you for standing by and welcome to Autodesk fourth quarter and full year fiscal 2025 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 Simon May Smith, Vice President, Investor Relations. Please go ahead.

Thanks, Operator, and good afternoon. Thank you for joining our conference call to discuss Autodesk's fiscal 25 fourth quarter and full year results. Andrew Anagnost, our CEO, and Janash Mojani, our CFO, are on the line with me. During this call, we will make forward-looking statements, including outlook and related assumptions, and on products, go-to-market, and strategies. Actual events or results could differ materially. Please refer to our SEC findings, including our most recent Form 10-Q and the Form 8-K 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. Autodesk delivered strong fourth quarter and full year results. Billings and revenues topped the higher end of our expected range, despite new foreign exchange headwinds, while margins and free cash flow exceeded our expectations. You will all have seen our restructuring announcement this afternoon, which has two parts. First, we have initiated the optimization phase of our sales and marketing plan. And second, we are reallocating internal resources to accelerate our strategic priorities and strengthen our resilience. Let me talk about them in turn. Our go-to-market GTM model has evolved significantly and purposely from the transition to subscription and multi-year contracts billed annually to self-service enablement, the adoption of direct billing, and more. We are now beginning the optimization phase, which positions Autodesk to better meet the evolving needs of its customers and channel partners. This comes from faster and less complex processes and more digital self-service and automation that enable tighter channel partnerships and less duplication of effort. Autodesk will continue to evolve its GTM to increase customer satisfaction and Autodesk productivity. Our current focus is on marketing, customer success, and operations, with an emphasis on consolidating teams into centers of excellence and investing in systems and processes that increase sales and marketing efficiency at scale. Our future focus will be on tighter channel partner integration, which will drive sales productivity and a greater emphasis on value creation for customers, and a broad deployment of self-service capabilities to further increase sales and marketing efficiency. Due to this ongoing optimization, we expect operating profit dollars and pre-new transaction model non-gap margin improvement in both fiscal 25 and fiscal 27. And once the optimization phase is complete, we expect to deliver gap margins among the best in the industry. Turning to where we are, reallocating internal resources to focus on the long term. Autodesk is focused on the convergence of design and make in the cloud, enabled by platform, industry clouds, and AI. Our investments in cloud, platform, and AI are ahead of our peers and will drive growth by providing our customers with increasingly valuable and connected solutions and supporting a much broader customer and developer ecosystem. To maintain and extend this leadership, we're shifting resources across the company to accelerate investments in these high potential strategic priorities. We are also building the capabilities we will need to enable future optimization and ensuring that we distribute critical expertise globally to remain competitive, resilient, and flexible. As I said last quarter, we are generating strong and sustained momentum in absolute terms and relative to peers. There are three main reasons, attractive long-term secular growth markets, a focused strategy delivering ever more valuable and connected solutions to our customers, and a resilient business. Disciplined execution is driving greater operational velocity and efficiency. We are deploying capital to grow the business, further reduce our share count, and enhance value creation over time. We believe these factors will deliver sustainable shareholder value over many years. Janesh is with me here at our annual sales conference today. We're excited to have him at Autodesk, and he's already making an impact. I'd like to welcome him and turn the call over to him so he can take you through our results and guidance for the year ahead. I'll then come back to provide an update on our strategic growth initiatives.