Autodesk (ADSK) investor relations material

Strategic vision and business transformation

• Completed a multi-year transformation to a cloud-enabled, AI-native platform, shifting from product-only to platform and capabilities, and moving to direct customer relationships for better data and engagement.

• Transitioned from perpetual licenses to subscription, consumption, and outcome-based models, enabling predictable revenue, stronger customer relationships, and new monetization opportunities including API and AI features.

• Industry clouds (Forma, Fusion, Flow) now serve as the foundation for end-to-end, AI-powered workflows across design, make, and operate, breaking down silos and enabling new business models.

• Expansion into operations and the creation of a third-party ecosystem are set to unlock new growth and monetization opportunities.

• AI strategy is sequenced: starting with task automation, expanding to workflow and systems automation, and ultimately enabling outcome-based pricing and monetization.

Financial performance and guidance

• Revenue grew from $2.5B in FY15 to $6.1B in FY25, with free cash flow rising from $0.6B to $1.6B; FY26 guidance: $7.40B billings, $7.05B revenue, $2.24B free cash flow.

• Non-GAAP operating margin increased from 15% in FY15 to 36% in FY25, with guidance for ~37% in FY26 and 41% in FY29, reflecting a 500–900 basis point improvement since FY24.

• Transition to annual billings and direct customer relationships has increased cash flow predictability and resilience.

• Capital allocation prioritizes organic investment, targeted M&A, and share repurchases to reduce share count, with stock-based compensation targeted below 10% of revenue.

• Sales and marketing as a percentage of revenue is expected to decline, with R&D stable and G&A decreasing due to scale and AI-driven efficiencies.

Growth drivers and market opportunities

• Focused on expanding in AECO, manufacturing, and media & entertainment, with TAMs of $51B, $58B, and $8.5B respectively through FY29.

• Manufacturing: Fusion cloud platform is driving growth in the mid-market and expanding upmarket, leveraging AI for automation and productivity, with a focus on consumer products and factory operations.

• Media & Entertainment: AI and cloud investments are reducing production costs and complexity, with Flow Studio targeting the creator economy and Flow industry cloud connecting the production lifecycle.

• AECO: Forma industry cloud integrates design, make, and operate, leveraging BIM and AI to drive digital transformation in construction, transportation, and water infrastructure.

• Infrastructure and operations represent multi-trillion dollar opportunities, with significant momentum in transportation, water, and data center projects globally.