Autodesk, Inc. (ADSK) Earnings Call Transcript & Summary

Welcome, everyone, and thank you for joining us today. We're delighted to have you with us. My name is Simon Mays-Smith, and I am the VP of Investor Relations. We have a great lineup of presenters for you today. We're going to start with Andrew and then have detailed presentations from many of our leaders, and then we'll finish with Debbie's financial update. We have 2 short breaks planned, and there will be a Q&A session with the entire executive team at the end. Before we start, I have 2 process items to cover. First, please answer your questions any time during the webcast in the Q&A tab. We'll get to as many of them as we can in the time available. And second, let me share our safe harbor statement with you. I'll let you read through it, but in summary, we may make forward-looking statements during the course of this presentation. Please refer to our SEC filings for information on risks and other factors that may cause our actual results to differ materially from these statements. Now with that, let me hand you over to Andrew to kick it off. Andrew, over to you.

Thank you, Simon. Today, we're going to talk about the strategies and tools that will drive many years of profitable growth for Autodesk. There's going to be 3 critical areas that I want you to understand throughout the day, and they fall in the categories of next-generation technology and services, end-to-end digital transformation within and between the industries we serve and leveraging unique growth enablers. First and foremost, Autodesk is a technology company, and technology is going to play a critical role in our growth. You will hear Raji talk about how we are connecting data, teams and workflows using next-generation technology and services such as common data, teams and workflows, real-time and immersive experiences and shared extensible and trusted platform services. I'm going to give you an overview to create context for the later discussion. One of our customers' most pressing problems is connecting data from our various products, from third-party products and from proprietary sources into a single view of what's happening on a project. Common data and project environments address that issue by moving away from file-based data transfers to granular data in the cloud. This allows our customers to retrieve the data they need, when they need it and where they need it. It enables third-party data to be connected seamlessly and securely directly into a project workflow. It means our customers can have a single view of a project regardless of the product or service being used by any individual customer, and it means customers can segregate that project view by discipline or by subcontractor. For example, a subcontractor joining a particular project can share only the data that is relevant to that project with other project members. It's all arbitrated by the cloud and our systems. To achieve this, our customers want connected data to drive granularity, interoperability and accessibility, connected teams that collaborate remotely through adaptive experiences across devices and connected workflows that are digitized, extended and customized. We're also using real-time and immersive experiences to transform design and make, moving more processes upstream that have traditionally been downstream or were not completed at all, thereby making more processes synchronous that have traditionally been asynchronous. What used to take hours or days will be done nearly in real time. Our goal is to provide real-time intelligence to designers and engineers about the performance of their designs, be it visualization, energy efficiency, strength, fluid flow or [ embodied ] carbon and combine these real-time interactions into desktop and virtual work environments that allow distributed project teams to collaboratively evaluate changes that are visualized in real time. Underpinning our common data and project environments and real-time and interactive experiences will be shared, extensible and trusted platform services. Data APIs are a critical aspect of Autodesk platform services but the services extend far beyond access to data. We are building out a set of technologies and services that are used across all our products and industry clouds to enable not only more efficient and rapid deployment of common technologies but also more rapid deployment of customer-facing capabilities. This will also allow customers and third parties to use some of our core capabilities to extend and expand the breadth of our solutions in the cloud. Next-generation technology and services, which connect data, teams and workflows will enable our customers to accelerate their digital transformation by driving end-to-end convergence within the industries we serve by delivering highly interactive and concurrent environments, which start in 3D and end in a digital twin, all powered by AI and machine learning to generate more predictable, consistent and sustainable outcomes. Next-generation technology and services will also transform our customers' workflows and content creation processes, shifting them from linear to concurrent by always ensuring a 3D model is generated by whatever kind of specification a user applies in whatever discipline and at any stage of the asset life cycle. All of these interactions will be AI and ML assisted. AI tools will make suggestions and provide real-time insights much earlier in the design process that improve not only the cost and predictability of the project but also its sustainability and performance. A live digital twin will be created and used during the design process, which can then be seamlessly used to operate assets during the operations phase. During the design process, the project owner will always have a real-time view of the current status of the project and how it is evolving relative to their requirements. When the [ make ] process is complete, this view becomes an interactive digital twin that the owner can use to manage the life cycle of the asset and improve its next generation. Information communicated between engineers and architects and between architects and GCs, for example, will be consistently checked for accuracy and fidelity by the systems we create enabling accurate, understandable and timely communication about what is changing as the project progresses. So next-generation technology will enable and accelerate further end-to-end digital transformation for our customers, but we have more growth enablers, which are unique to Autodesk and which will keep giving incremental growth to us over time. One of them is our business model. The next is our broad go-to-market opportunity, which includes our license compliance opportunity. And the third is our ability to converge multiple industries and create connections between AEC and manufacturing and media and entertainment. Business model evolution enables more customers to access our ecosystem in a way that works for them. The more choice we offer our customers, the better we are able to serve them. Our subscription model lowers the cost of [ inventory ] into our ecosystem. Tiered plans enable customers to tailor support and administration to precisely fit their needs. Consumption models enable a large cohort of occasional users to access our ecosystem and provide an on-ramp into a broader product and subscription ecosystem. Steve will also talk more broadly about how we're evolving our go-to-market and customer support and [indiscernible] to enable us to efficiently deliver even greater value to our customers while discouraging noncompliant consumption. You're going to hear more about our plans to extend our reach further into the long tail of potential customers using new business models, new ways to engage our customers and pervasive self-service. All of which are going to continue to deliver incremental growth to Autodesk. Now coming full circle, our next-generation technology and services that I talked about at the beginning of this presentation, the common data and project environments, real time and immersive experiences and shared extensible and trusted platform services, enable us to better serve customers, both within and between our industries. It's what enables us to connect design and make an AEC to move upstream to conceptual design and downstream to the operations space of the asset cycle. Beyond that, by connecting AEC and manufacturing, we can realize the efficiency and sustainability from industrialized construction and enable projects like the European Southern Observatory's extremely large telescope showing here. It's going to study with unprecedented precision, planets around other stars, supermassive black holes and the first galaxies in the universe. And ultimately by connecting AEC, manufacturing and meeting entertainment, we can optimize the interplay between the physical world and various metaverses further transforming our customers' workflows. Now to summarize. Next-generation technology and services, end-to-end digital transformation within and between the industries we serve and leveraging unique growth enablers will shift Autodesk from products to capabilities. And as we make that shift, our TAM will expand towards $100 billion, which is going to enable us with our growing data ecosystem to build a flywheel of compounding growth. Here's the team that we'll be presenting today. I will return at the end for some concluding remarks before we take questions from all of you. To get things started, let me hand you over to Raji. Raji, over to you.

Thank you, Andrew. Good morning. I am Raji Arasu, Chief Technology Officer. Today, I'm going to share with you how our cross-industry platform capabilities create an unparalleled foundation that amplifies value for our customers while it catalyzes future growth for Autodesk. We will cover 3 topics: external context that informs customer outcomes and our technology strategy; how we unlock opportunities through our portfolio and shared capabilities; and why we win. Now let's dive into the external context. Around emerging technologies, our customers' digital transformation and our ecosystem. Emerging technologies will impact our industries in radical ways. Open Data formats, easy access and affordability of accelerated compute power are changing the game. Physics based digital twins in the industrial metaverses are now possible changing how we design, simulate and operate. And the future of visualization is not just photorealistic immersive experiences, but a 2-way interactive environment where distributed teams work concurrently reducing project, product and production cycle times. And the current type of a generative AI and specifically image to 3D and scan to 3D will get more mainstream. It's going to change how content is created in design and make. Our customers' need for digital transformation is accelerating the convergence that you heard Andrew talk about. And the need for predictability in the projects is requiring our customers to tackle complex outcomes earlier in design. And the unrelenting demand is requiring them to automate all parts of their value chain. Later, you'll hear a lot more details from my colleagues are on digital transformation in their industries. And there are different dynamics shaping our ecosystem. Our customers' IT spend has significantly increased yet hiring and retailing talent is not easy. The demographic of our partner ecosystem is evolving from pure resellers to an expert network, an expert network that connects disparate systems to help digitize workflows for our customers. Autodesk is uniquely positioned to continue amplifying value while growing the total addressable market for all parties in this ecosystem. These external factors inform customer outcomes. Our customers want us to connect their data, their teams and their workflows in real time with the least amount of effort on their part. And this connectivity is essential for the digital transformation and convergence. Also, there is an implicit expectation that our offerings are built on a global trusted platform that is powered by a 24/7 cloud operation with best-in-class service level agreements. And then everything is connected, our customers can work in real time, immersive and interactive environments where teams design, visualize and simulate rapidly and concurrently. These outcomes resonate very well with our customers. Autodesk has an opportunity to deliver these outcomes and transform our industries. We have an opportunity that can be realized by leveraging the unparalleled breadth and depth of our portfolio. Our portfolio covers life cycles for 3 large industries and 3 infrastructures, land development, transportation and water. And when we build a platform capability for one industry, it benefits all industries. And we're taking a platform approach. We continue to pack all cross industry shared capabilities into Autodesk platform services. First, these services are used across many of our products today, including Autodesk Construction Cloud, Data Management APIs and much more, driving speed, efficiency and rapid deployment. Second, these services accelerate the industry clouds fusion, forma and flow. Third, these services are directly consumed by our customers and partners to further digitize our value chain. And now let's look under the hood of APS, short for Autodesk platform services. I am showing a scaled-down version of our APS capabilities map. These capabilities provide speed for our internal teams, helping efficient and rapid deployment of common technologies, rapid deployment of customer-facing capabilities, M&A integration and outcomes for our customers through APIs and SDKs. This map continually evolves as we add shared services and adopt emerging technologies. I don't plan to walk you through all of it, but I will focus on 3 areas where you will see a clear line of sight to future growth. These 3 areas are trusted platform, connected data and connected workflows. The first area is trusted platform. This houses all capabilities and automation to provide necessary security, privacy, availability, recoverability and regionalization to our customers. In addition to delivering customer confidence, this area also unlocks expansion opportunities for products of today and industry clouds for the future. One such expansion opportunity is through FedRAMP, short for Federal Risk and Authorization Management program. We expect to achieve FEDRAMP moderate authorization in a matter of weeks, which will help us expand our cloud offerings to federal government agencies through standard security authorization. Amy will further touch on the opportunity, our plan and what it unlocks for AEC. The data utilization aspect of trust further unlocks expansion opportunities globally. And we have plans for AEC and manufacturing in the next 12 months. To summarize, in addition to securing customer confidence, a trusted platform helps us unlock public sector and global expansion opportunities. The second area that is driving future growth for all parties is connected data. Connected Data delivers granularity, interoperability and accessibility. Let's start with Autodesk Data Model. Our customers make over 40 million updates to the data every day and that data needs to be granular and connected across our industries and products. Autodesk Data Model is a common granular digital thread across all phases of the end-to-end project, product and production life cycle. Fusion is adopting the Autodesk Data Model, and you're going to hear from my colleagues in AEC and M&E on their rollout plans. Autodesk Data Model is about disaggregating data in our files to be real-time, granular and in the cloud, making it available anywhere and any time through all touch points. As with Fusion, our customers are really excited to get their hands on this granular data. In addition to moving away from time consuming and expensive handoffs with files over time, Autodesk Data Model is unlocking opportunity to train and apply AI to increase insights and intelligence across the entire life cycle. This is how we achieve outcome-based design and concurrent work environments for teams and our customers. Here is a great example. CIDEON is using this granular data for back-office integration. CIDEON is a company based in Germany, and they're both a customer and strategic partner with Autodesk. They're using our manufacturing data model to ingest CAD data from Fusion 360 into their ERP system, such as SAP for procurement costing and planning. Bringing this real-time granular data into build of materials helps them shave days of this workflow. Data interoperability is a critical need for our customers, and we are solving this through Autodesk data exchange. Our customers generate, exchange and move data between Autodesk products and products from other providers. And that is why we have built data connectors, which create an open data exchange capability. These data connectors enable third-party data to be connected seamlessly and securely into the project workflow. Some large design firms are using our data exchange, and we are seeing positive uptick in usage. Let me show you how these connectors work together in an AEC workflow. A typical AEC project could bring in complex curtain-wall facades from Rhino and Grasshopper into Revit and further connect design data to Microsoft's Power Automate, thereby connecting business workflows and integrating into their back-office technologies. We are building and launching many of these data connectors, and we are opening this capability via APIs. So over time, the ecosystem can build hundreds of these connectors. And as the number of connectors grow, we will realize convergence to scale across industries, connecting AEC, manufacturing, media and entertainment and business applications. Our customers are seeing tangible benefits from the use of our data connectors. With a power automated connector, AECOM, a global infrastructure consulting firm can now automatically extract information from a Revit model into Power Automate. AECOM is digitizing this workflow as a means to improve information management and decision-making for their teams, with the goal of saving time that would otherwise be spent importing and exporting CAD design files. The third area within connected data is Autodesk Data Access. And as the name suggests, this is about accessibility for users to their project data. In a world of convergence, we want our customers to have a common experience managing the project data and the users access to data across the portfolio of our offerings. So they can find out their project data in one place, the 5s of today and the data models for Forma, Fusion and Flow for the entire project. Autodesk Data Access also provides unified admin experience to manage users and their access to data across the portfolio of our offerings. The third area that is driving future growth for all parties is connected workflows. I'll begin by talking about APIs. We are the trusted partner for our customers critical workflows. We are constantly expanding our portfolio of products and services to meet these workloads through a deliberate combination of acquisitions, partnerships and in-house development. In-house development, like the work we're doing with Forma, Fusion and Flow. But we know that we can't deliver everything to everyone, and our customers want extensibility to incorporate non-Autodesk products. In some cases, our customers want to bring in some other industrial construction technology into their workflow or they may want to real-time integration to their back-office technologies. All of this is possible through Autodesk Platform Services, which opens our capabilities and data to customers and third-party developers through APIs and SDKs. With the move to the cloud and real-time digitized workflows, we are seeing our customers and third-party developers adopting APIs rapidly, with over 8.5 billion API calls in fiscal year '23, and a 48% increase in API traffic year-over-year. Our APIs are helping global brands and Autodesk partner, Team D3 has been working with a multinational retailer with more than 10,000 stores to consolidate disparate processes and systems into a powerful digital twin of their stores using Autodesk Platform Services. This digital twin provided the retailer's management team with real-time actionable insights on the condition of the stores, dramatically cutting costs and increasing quality, speed and flexibility. APS also offers access to our expert network of system integrators and third-party developers. In addition to extensibility and customization, this expert network enables product innovations in our industries through the building blocks offered by APS. By leveraging our APIs, partners and our expert network are building and monetizing business intelligence dashboards, digital twins, configurators, prefab solutions and much more. We have 30,500 cloud [indiscernible] developer accounts doing this, which is nearly 10x the number of developers at Autodesk. Sweco is one of Europe's leading architecture and engineering consulting firms and has a thriving sustainability practice. It launched a digital service called carbon cost compass, built on Autodesk Platform Services. It helps its customers explore different materials and calculate carbon footprint and cost of different types of buildings much earlier in the project life cycle. And this network is monetizing their apps to our app marketplace. Our app marketplace is vibrant with over 4,200 published apps that get over 1.3 million downloads a year. And why we win. We have a robust set of cross-industry platform capabilities, creating an unparalleled foundation to amplify value for our customers and catalyze future growth for Autodesk. We're taking a platform approach to deliver these outcomes. We're delivering outcomes of connected everything, which includes data, teams and workflows, all built on a trusted platform for our customers. We are creating the future for the next generation of content creators and makers, a future that provides a transformative environment to make anything. In a real-time immersive and interactive way. And we will do this by leveraging AI and cloud. We are uniquely positioned to take advantage of the depth and breadth of our portfolio to build these platform services for multiple industries. And when we build for one industry, we build for all industries. This accelerates our industry clouds. And by opening these capabilities, it accelerates everyone in our ecosystem. Our strategy translates into growth for all parties. As we make more data and capabilities available through APIs, more partners and third parties benefit from our APIs. They build more apps and help digitize more workflows for our customers. This grows TAM for our partners and expands our expert network. And on the customer side of the supply wheel, solving for data delivers more value-added intelligence and insights to help our customers make better decisions to meet their outcomes. And as we unlock more geos and public sector agencies, it increases usage of our industry clouds and brings more customers, further accelerating the flywheel effect and providing growth for all parties. Thank you. Now over to Jeff to talk more about future of manufacturing.

Thank you, Raji, and good morning, everyone. I'm Jeff Kinder, and I lead our design and manufacturing group here at Autodesk. I'm excited to talk with you today about the opportunity we see in the manufacturing industry and how we've positioned ourselves to pursue that opportunity. We will look at how Fusion, our model for Autodesk's industry cloud is disrupting the future of manufacturing and will show how this disruption is gaining momentum. Finally, I'll talk about some of the adjacencies we see as growth opportunities in manufacturing. Let's begin by looking at the total addressable market for design and manufacturing. First, it's vast. With an addressable market of $42 billion and 31 million professionals between design and make. Manufacturing is a broad surface area with that $42 billion opportunity spread across multiple industry segments, from automotive and transportation to aerospace and defense, to industrial machinery, building products and fabrication as well as consumer products. Further breaking this down, it's worth noting the addressable market is larger, and there are twice as many users on the make side of our industry. We've long touted the convergence of design and make as our future vision and the way manufacturers will see true breakthroughs in productivity. We view serving more of these make users as a growth opportunity for Autodesk, which I'll cover later. Many of the trends impacting our industry and shaping our strategy are not new. Products continue to get smarter and more connected, Macroeconomic uncertainty persists, including geopolitical tension and dated shop floor investments requiring more manual processes are squeezing margins from manufacturers due to inflation. The two trends on the right are interrelated. Macroeconomic uncertainty makes demand harder to forecast. When the top line is unpredictable, costs become even more of a focus. But with more expensive manual processes, there's only so much a manufacturer can do. This is why digital transformation is accelerating, and this is where Autodesk helps. Manufacturers need to invest more in software to make themselves more efficient and automated. In fact, given the higher cost of capital, manufacturers are more likely to delay multimillion dollar equipment upgrades than software purchases. Historically, Autodesk has gained share in manufacturing during volatile economic periods helped by our disruptive price points. We plan to lean into the face of any macroeconomic uncertainty and use that as an opportunity to continue our growth. From what does that market share come? Well, another way to think about the segmentation in our market is based on the size of customers. If you break it down between mid-market businesses and large enterprise customers, the large enterprise customers are typically characterized by highly customized on-premise software implementations. On the other hand, small- and medium-sized businesses or the mid-market have to be less customized and more scalable based on their shared numbers. And while historically, this mid-market segment also has had on-premise implementations, increasingly, those are becoming cloud-based. Let's plot the major players. If you look at how Autodesk is positioned against competitors in manufacturing, first, we span design and make. This is one of our differentiators. We believe there's no design without make and driving the convergence between those two will fundamentally shift the future of manufacturing. I'll talk more about this when we discuss our growth drivers. Second, you will notice we focus on the mid-market, and we compete directly with SolidWorks. We were an early mover and have been developing scalable subscription and cloud-based solutions for years. We are leading customers to the future. Importantly, we believe the path of disruption for all our manufacturing starts in the mid-market, then works its way up. This is a model seen in hardware, enterprise software, digital advertising and countless industries. Disruption doesn't work the other way around. We are confident that we are leading the industry in vision and in execution, and we have a year's long head start. Shifting gears, I want to take a minute to remind you of our vision for design and manufacturing. Earlier, you heard Andrew reference our industry clouds. Fusion for manufacturing, Forma for AEC and Flow for media and entertainment, all built on Autodesk's Platform Services. Autodesk Fusion is the model for our industry clouds. It connects everyone involved throughout the product life cycle, from the top floor to shop floor with professional design and manufacturing capabilities that work seamlessly together. It represents our vision of end-to-end design and make processes coming together in the cloud with connected data and users. Fusion has been a disruptive force in manufacturing with growth far outpacing the industry. There are 3 primary drivers of this growth, design and make together in an end-to-end solution, a flexible and disruptive business model plus a large, highly engaged community. You may remember a slide similar to this from our previous Investor Day. We are moving from a world of point solutions, leading products focused on individualized tasks that have driven growth in our industry. By the way, these products continue to grow and serve our customers at Autodesk. But the challenge for our industry is point solutions are limiting. They don't easily work together. So data does not flow end to end. They don't take advantage of the cloud in a meaningful way. So collaboration and line of sight are more difficult and automation across point solutions is nearly impossible. If our industry remains on the left side of this chart, customers will only realize incremental productivity improvements. To achieve breakthrough productivity gains, we need to move up and to the right. The convergence of design and make in the cloud is a discontinuous disruption in our industry, executed well, it delivers intelligent automation and breakthrough productivity gains for manufacturers. Shifting to the cloud alone doesn't create this discontinuous disruption, getting there requires 3 things. Converging design and make technology in the cloud to create a digital pipeline for manufacturing, unifying product data in a cloud-native architecture and executing on that data with cloud side services that automate non-value-added work and unlock generative creativity. With Fusion, we are converging all aspects of design and make for manufacturing into a single platform based in the cloud, thus removing unnecessary steps, data loss and friction with a unified product development experience. This converged cloud experience also offers visibility and a steady feedback loop between steps in the design and manufacturing process, along with operations on the shop floor. I'll show you how this convergence is driving growth on the next slide. In order to converge steps in the end-to-end process, the underlying data model needs to be unified so that data can flow seamlessly back and forth. Coming from point solutions, data unification has proven to be a challenge in our industry and other industries for that matter. It's a challenge that takes technical leadership, investment and time, but solving it is a distinct advantage. Product models are massive with detailed specifications in geometries and often with part assemblies numbering in the tens of thousands, files quickly become unwieldy. With our manufacturing data model, there are no more large files, no more manual error-prone, copying and pasting, no more version control, granular changes made to specific aspects of the design or configuration only affect those data elements. Additionally, we see a big opportunity to ignite the entire ecosystem. With an open cloud-based manufacturing data model, we can enable customers, suppliers and partners so that everyone is able to integrate workflows faster and in ways that they simply weren't able to do in the old file-based economy. How convergence and unified cloud data come together to unlock intelligent automation. Whether that means automating non-value-added tasks or using AI or ML to stimulate idea generation. We want to help our customers focus their time and energy on the highest value aspects of their work, and we are already delivering our first automation's infusion with automated machining, drawing and model. On machining, you can upload any model infusion and with one click, an algorithm will create an optimized machining strategy for making a part. On drawing, Fusion will automatically place dimensions on a drawing view. This can take a weeklong manual task down to minutes. And on Modeling, we've introduced automated modeling to provide quick inspiration and produce a range of suggested designs. Automated modeling is a simple on-ramp degenerative design. And this is just the start of an exciting feature for intelligent automation. The software partner who can bring these types of breakthrough productivity gains to customers will be a disruptor. Let's look at an example of convergence in practice. We've made measurable progress in unifying our portfolio, and it's working. Convergence is driving growth. Our CAM portfolio is a case study. The Point Solutions feature CAM and PowerMill were providing great value but not growing as stand-alone offerings. We integrated those capabilities into Fusion and what we are seeing is substantial new ACV growth in Fusion with the machining extension. Eventually, we will end of life these stand-alone offerings, but the takeaway is unification and convergence are working. The second growth driver for Fusion has been its disruptive and flexible business model. Fusion delivers unprecedented value to manufacturing customers. If you look at competitive products on the left side of this slide, you'll see they are anywhere from $5,000 to $50,000 and this cost generally gets you perpetual licenses to file-based point solutions that are difficult to integrate because they come from different companies. Contrast this with what we're offering with Fusion on the right. Not only does Fusion bring you design and make in the cloud but it does so at a fraction of the cost and we keep adding more powerful design and make capabilities into Fusion. Fusion is a flexible solution that's scalable to meet each customer's unique needs. A base subscription of the Fusion Cloud is $545 per year to meet the end-to-end design and make needs of most machine shops. Extensions are available for more sophisticated needs. Steve will talk more about consumption later in his presentation, but flex is a great way for customers to try our various extensions. We round out our flexible model with offerings, bundled sets of extensions that apply to a specific industry or persona. The ladder model you see on this slide allows customers to choose what works for their needs so they can align value with usage. It also effectively increases price realization for Autodesk, while still remaining disruptively below the competition and it's working. We have seen a roughly 40% 5-year compound annual growth rate for commercial Fusion subscriptions. And our monetization, which includes extensions and price realization, is increasing even faster at roughly 70% over the same period. Fusion has used the levers of product-led growth to help fuel its rise. These levers include low price of entry, ease of setup, ease of use and building a strong community of users who help each other. The Fusion community is active and engaged across multiple social media platforms. How to videos on YouTube, showing up commercial Fusion creations on Instagram, or asking for help from other Fusion users on Facebook. This activity happens every day. Community takes time to build and is the final part of the Fusion success story, not only do users help each other and evangelize for Fusion, but they also give us direct feedback on what the product needs to do better. I also have to call out our single largest community, students and education users. It's working here too. We have over 5.5 million education users of Fusion plus another 60 million Tinkercad users. We are training the next generation of design and make professionals with the software tools of the future. On the right, you can see an example of how one group of students and educators is using fusion in an inspiring way. Limbitless Solutions is a nonprofit organization based at the University of Central Florida, where research staff, faculty and over 50 students are transforming what prosthetics for children with disabilities may look like in the future. These prosthetic limbs require advanced high-functioning electronic parts. Limbitless Solutions relies on Fusion as an end-to-end solution for designing the bionics all the way down to the electronic components. Let's share some other customer success stories. We'll start with a customer using Fusions plus extensions. Sandvik is a global high-tech engineering group providing solutions that enhance productivity, profitability and sustainability for manufacturing, mining and infrastructure industries. We collaborated on a plug-in to deliver real-time tooling and cutting recommendations for Sandvik via Fusion. They are now one of the largest users of Fusion and have recently adopted our fusion machining extensions. Our next success story is about data and the shop floor. The McGee Group is a family-owned business that specializes in the design and manufacturing of eyewear. McGee is using Prodsmart to help with digitization of their production floor, automation and access to real-time MES data. By the way, Prodsmart connects to the same Fusion data API at CIDEON which Raji mentioned earlier. Moving to cross-industry collaboration. Andrew mentioned our work with the European Southern Observatory, or ESO, where they are building the world's largest telescope [indiscernible]. This complex project required the full depth and breadth of our portfolio, starting with inventor. ESO's review of solutions demonstrated that only Autodesk had the range of solutions and capability to handle a project of this magnitude. We are now looking at how data management can help ESO on the job site itself. And last, we have an example of our move into smart products. A leading manufacturer of consumer electronics, Logitech turned to Autodesk when designing the lightest gaming headset in the market. Logitech leveraged Fusion for organization-wide collaboration and tools for rapid prototyping. Our partnership is continuing, and we're investigating co-innovation and industrial design, mechanical drying and integrated PCVs in one native platform, which now includes the new signal integrity extension powered by Ansys technology. I want to close by talking about 2 areas we see as near-term growth opportunities, smart products and smart factories. The number of connected devices is growing, yet this segment is served by a fragmented set of disconnected complex design and make technologies. It is a prime market waiting for disruption by a connected multidisciplinary end-to-end solution. We are developing a targeted workflows infusion that bring together visualization, advanced plastics design ECAD, MCAD simulation and hybrid manufacturing capabilities to give these customers a seamless product development process. Partnerships play a critical role here. We need to ensure we have robust additional ECAD and simulation capabilities to serve mid-market and even larger accounts. Earlier, I referenced the opportunity we have on the make side of the industry and specifically on the shop floor. The factory has its own life cycle from planning and designing the production layout through construction of a factory and ultimately ensuring peak operational efficiency. Today, much of the process is disconnected and manual, leading to inefficiencies and friction. Digitizing this thread is a natural expansion for Autodesk and solves a critical business for our customers. While we have a beachhead because of our strength in factory planning and AEC, we currently only serve the needs of a portion of the personas is on the shop floor. Hence, we view this as a growth opportunity. The yield on the smart factory transformation increases exponentially for manufacturers as they digitize, connect machines and share data between design, make and operate processes. We have been building out our vision for Fusion as an industry [indiscernible] manufacturing over several years. And as you've seen, it's working. We win design and manufacturing because the convergence of design and make with unified data and automation will bring breakthrough productivity gains to our industry. We win because Fusion is an unprecedented value, offering flexible solutions that scale with the manufacturers' needs and sophistication. It's already disrupting the mid-market. And as Fusion matures, it will disrupt the entire industry. Lastly, we have momentum. Our community is a strength that fuels our moment. We are winning with customers today while training the next generation on the design and make solutions for tomorrow. Fusion is the future. Thank you for listening. And now we'll take a quick break. When we return, you'll hear from Diana Colella about our opportunity in media and entertainment. [Break]

Welcome back, everyone. I'm Diana Colella, SVP of Media and Entertainment at Autodesk. I'm happy to be here today to talk about our Media and Entertainment business and how we will accelerate the transformation to cloud production. I will cover industry trends, how we are expanding and why we believe we will win. First, the media and entertainment software industry has a TAM of $7 billion, which includes 3 million professionals across graphic design, film, TV and games. The industry is growing at a CAGR of 7% and is being driven by a few key trends, each of which represents an opportunity for Autodesk. The first is an increasing need for quality content. The second is adoption of cloud technology, and the third is the rapid rise of interest in the metaverse. Let's take a closer look at each. Competition between studios is fueling demand for higher-quality visual effects content. Netflix and Disney both amounts the need to focus on creating more profitable content, not just more content. And in games, new consoles have also significantly raised the quality bar. The good news is higher quality means more 3D. Recent examples include movies like Avatar 2, streaming content like Andor and Stranger Things and games like Elden Ring and God of War. These are all very popular profitable and visual effects heavy. Yet despite the desire for eye-catching content, budgets remain tight, resulting in pressure for our customers to deliver more content for less. And this is driving a need for greater efficiency, which brings us to our next trend, the adoption of cloud technology. The usage of cloud technology in media and entertainment and specifically in post production is growing and growing fast. Studios are rapidly finding the significant benefits cloud technology can have, especially when it comes to improving the overall efficiency of a production. This is causing them to invest more in cloud technology, which is seen as a key strategic differentiator by most of our customers. Our third trend is all about the metaverse. While there's still a debate about what shape the metaverse might take and how long it will take, one thing is for certain, it will need 3D. Today, multiple metaverses are being built for a variety of different purposes: social, entertainment, business or design, such as digital twins. But no matter the reason for creating a metaverse, everything in it is virtual. And creating virtual content means 3D content creation tools. As metaverses gain traction, they are attracting many more content creators. We already see this with early gaming metaverses such as Roblox. Last year, over 11 million users created 62 million clothing items in Roblox alone. This is a trend we expect to continue creating new opportunities for Autodesk's 3D software. Keeping these trends in mind, let's take a closer look at our opportunities to expand in media and entertainment. Starting with growing our content creation business. We are leaders in content creation, and our software is well established at the heart of most professional pipelines. By continuing to focus on developing new and better creative tools, increasing performance and improving workflows, we can deepen our competitive separation, which allows us to continue to meet the current and future needs of our customers as well as the studio's demand for better, more profitable content. We are also making our tools more accessible to meet the needs of a broader range of users. For example, our Indie offerings, which is for individual artists and hobbyists, making less than $100,000 a year, has been bringing in many new subscribers who could not afford our tools before. Also, with new gamified tutorials, we make it much easier for them to learn. We also introduced Maya Creative, a consumption-based offering, last September. Customers can now access Maya's Creative tool set in just $3 a day. We are seeing increasing interest from customers for more flexible offerings that scale better with their needs and businesses. Both Indie and Creative offerings enable us to broaden our user base significantly. Our second area of opportunity is to expand in media and entertainment by driving broader adoption of our cloud solutions. We've seen strong growth in our cloud products, ShotGrid and Moxion. Both products enable remote workloads and collaboration, which is becoming increasingly important to our customers as they juggle more projects and as productions get more complex. With Moxion, a producer who has to make an urgent trip to London can still check what is happening during a shoot in LA. Using the cloud, they can see a live stream from the camera and check that they are getting what they need. And if they're not getting the shot they want, they can tell someone on site to change it while it's happening without having to pay for expensive reshoots. And these days, a single production can involve multiple collaborators. So keeping track of things is getting harder. This is where ShotGrid shines. It keeps track of everyone, allowing rescheduling and reassignment of tasks while keeping everyone in sync with cloud collaboration. Issues arise all the time, impacting the production, but they are easier to manage with the cloud-based tools we have at Autodesk. When studios need to have more efficient ways to create content, Autodesk is the answer. Our third opportunity is connecting the media and entertainment production life cycle with Flow. Historically, the average cost of making a movie was decreasing as digital technology replaces the need to build extravagant sets and hire a large number of extras. As of 2013, that trend reversed and costs have been climbing rapidly since. This is because movies are getting longer and the public's case for more spectacular visuals is growing. And the more complex the visual effects, the more a movie costs. Last year, Fantastic Beasts, Wakanda Forever and Thor, all cost more than $200 million to make. Similarly, the cost of creating AAA games has also been rising with games like Cyberpunk, needing as much as $170 million. The biggest challenge our customers now face is how to continue to up the bar on quality while still maintaining profitability. The processes in filmmaking are still highly inefficient because the industry still functions in silos. Different teams are often working on the same project, but unable to share information or assets. Say, for example, a movie director onset does not like the helmet on the actor's space suit, rather than replace it onset, they decide to fix it in post production, which is more costly. The postproduction company gets the camera files and the disk drive with several terabytes of production data. Have you ever saved a file to your hard drive or even to Box or SharePoint and not been able to find it later. After a few days, it is hard to remember exactly what you named the file and where you put it. When you are working with thousands of files, it's even easier to lose track. Therefore, artists spend valuable time chasing down the director for what to do with the shot or sifting through thousands of camera files and notes. Hours, if not days, could be added to the production because of this. If they could just collaborate on the Cloud, share assets and notes, all this extra work would be reduced to 0. This is why Flow, our industry cloud for media and entertainment, is so compelling to customers. Like Fusion for manufacturing and Forma for AEC, Flow represents a unique opportunity to revolutionize content creation and solve some of the thorniest productivity problems in media and entertainment. The foundation of Flow will be an asset manager built on a robust and secure industry data backbone. This asset manager will enable data to be shared through each stage of the production life cycle. For example, a director can automatically see all the storyboards, concept art and pre visualizations for the shot they are shooting without having to go and find them. The postproduction coordinator can easily assign the work of creating a CG helmet to a 3D artist and provide them with all the relevant notes and references. So when an artist logs on, they will see a task assigned to them and all the data they need already loaded into Maya, for example. So they can get started immediately. When they are done, they won't need a need to hit save or worry about where to save it and what to call it. The asset manager will take care of it all. We will also send an e-mail to the visual effect supervisor to let them know the artist has finished, so they can review the work, and if satisfied, shared back with the director. These are the kind of workflows Flow will enable. While our first workflows will be targeted at film, our industry cloud is also being designed for games production. For Flow to succeed, it must support an open ecosystem of partners. It is not possible for any one company to provide the media and entertainment industry with everything they need for production to be successful. Our customers and third parties will need to be able to extend the capabilities of our industry cloud. Only then can Flow truly become a source of efficiency for our customers. To that end, Flow is being built with Autodesk platform services. which supports open standards and design with an API-first mentality, much in the same way that Maya is today. But the true value of Flow lies in the disruption it will bring to the way movies and games are made, making it simpler for everyone. Today, complexity in production is typically solved by throwing more people at the problem, which is why movie credits keep getting longer, but that's not sustainable. By connecting the data across all phases of production, we cannot only make things more efficient, but we can also leverage machine learning and AI to generate production insights and predict optimal outcomes. But it's not just about productivity or how things are made. With Flow, we can provide new kinds of content creation tools, too. Not only can we automate labor-intensive and repetitive tasks, we can leverage AI to deliver new creative tools to make artists work more intuitive. By being the best at understanding the data and best at bringing tools to the data and the best at turning our knowledge of the data into innovative new capabilities, we can redefine the way content is made. Now that we have looked at the opportunities, here's the why we will win in media and entertainment. Our award-winning content creation and production management products are beloved by creators and already essential to many customer workflows. We are continuing to keep our tools competitive by adding features to make content creation and production management easier and lowering the barrier to entry so our professional tools are accessible for all artists. Secondly, with the acquisition of Moxion, we are now well positioned both at the start and end of the content production chain. Moxion puts us onset where production data is first acquired by cameras and where key creative decisions are made. And finally, we will have Flow, an end-to-end production industry cloud for media and entertainment. Flow will reshape the way the industry works, bringing everyone to the data and not the data to everyone. They will break down silos and eliminate redundancy and waste, making it easier, faster and more fun for anyone to create high-quality entertainment. It is for these reasons, we believe we will win in media and entertainment, continuing to grow our business while maintaining our leadership position as the entire industry completes its cloud transformation. Thank you. Next, I'd like to introduce Amy.

Thanks, Diana, and welcome, everyone. I'm excited to be here today to share how Autodesk is driving growth by helping our AEC customers accelerate digital transformation with building information modeling. To start, I will give some industry context, including our AEC total addressable market. Next, I will talk about some of the ways we are reinforcing our core portfolio to accelerate digital transformation and add value for our current subscribers. Then I will talk about how we are leveraging our existing solutions by expanding building information modeling deeper into road and rail, water and sustainability. Finally, I'll share our perspective on the future of building information modeling. Now let's first talk about the massive size of our AEC opportunity. Through FY '27, our AEC total addressable market, or TAM, is $46 billion, serving 28 million design and make professionals who are potential users for our software. $30 billion of that total TAM comes from design and $15 billion from make with 11 million and 16 million professionals, respectively. Jim will talk to you about the construction opportunity in make. I will focus on design and more specifically, building information modeling and I'll highlight growth opportunities like water infrastructure, which has expanded our total addressable market. Here is what we are seeing in the industry. There continues to be unprecedented demand, driven by climate-related disasters, population growth and stimulus packages. How we work has changed. Remote and hybrid work is now the norm for many while supply chain disruptions and lack of staff are accelerating the industrialization of construction. Finally, digital transformation is increasing, driven by an explosion of data and tools, owners requesting handover and maturing technologies like AI and machine learning that are providing new capabilities to drive automation. Autodesk is uniquely positioned to help the AEC industry with these challenges. Digital transformation accelerated during COVID and is here to stay. In fact, according to Gartner, 91% of businesses are engaged in digital initiatives. And for good reason, according to McKinsey, successful digital transformations can double EBITDA. It is clear companies are continuing to discuss digital transformation with 97% of IT decision-makers involved in digital transformation initiatives. The first opportunity I will cover is how we are accelerating digital transformation and adding value with our core offerings. As Andrew mentioned, one of our customers' most pressing problems is connecting data, from our various products, from third-party products and from proprietary sources into a single view of what's happening on a project, enabling the workflows teams' need. Our answer to this digital project delivery opportunity is Autodesk BIM Collaborate Pro, which enables Revit users to collaborate on a shared connected model in the cloud. The number of Autodesk BIM Collaborate Pro users have tripled since COVID with 44% year-over-year growth for the past 3 years. And with 38% of Revit users globally adopting Autodesk BIM Collaborate Pro, there is still room to grow. This is an exciting plus one opportunity that builds on the strength of our underlying business. And we've been expanding Autodesk BIM Collaborate Pro to other verticals like civil infrastructure. By investing in collaboration for Civil 3D, we are expanding our target user base by approximately 51%, covering more users and projects. More connected data will provide opportunities for insights and automation while increasing value over time. This will enable us to scale quickly. We currently have just over 2% of the Civil 3D users leveraging Autodesk BIM Collaborate Pro. The U.S. government represents another growth opportunity with an annual construction output of approximately $382 billion. As you heard from Raji earlier, the federal government manages a program called the Federal Risk and Authorization Management Program, or FedRAMP, for short. In order to sell cloud software to the federal government, FedRAMP provides a standardized approach for security authorizations for cloud service offerings. We expect to achieve FedRAMP moderate authorization in a matter of weeks. Our initial Autodesk for government offering includes Autodesk Docs and BIM Collaborate Pro, which have been modified from the commercial offerings to meet FedRAMP requirements. Now let's talk about how we are extending our core offerings to new personas and workflows. AutoCAD Web is a new stand-alone offering that's targeting the next generation of users. It provides access to AutoCAD's essential drafting capabilities on the web and on mobile devices. So our customers can collaborate easily and stay connected, whether they are at home or in the field. It was introduced last year and provides AutoCAD level quality at a low cost of ownership of $100 a year. And we're seeing early signs of success, reaching customers who were overserved by our other AutoCAD products as well as those customers that are underserved by free products. We spent some time analyzing AutoCAD usage patterns and discovered that 28% of AutoCAD users are also using our LISP programming language to create customizations and automate repetitive tasks. This type of value is very sticky as it enables individual productivity. So we are adding AutoLISP to AutoCAD LT. This is a significant leap in value that we expect will attract new and returning users to the ecosystem. While it's great to offer more value at the LT price point, we are also leveraging the power of machine learning to differentiate AutoCAD and address pervasive customer needs with insights and automations. With the markup import and assist, customers can now import markups from scans, PDFs and even handwritten notes. AutoCAD will recognize the text and markups and convert them to AutoCAD objects assisting customers in automating their next steps in drafting. With smart blocks, customers get recommendations on the blocks that are most relevant to their project and AutoCAD will automatically scale, rotate and place the blocks in their drawing. For Revit users, in addition to hundreds of user-requested updates, we are addressing long-standing interoperability challenges. We've partnered with McNeel & Associates, the makers of Rhinoceros 3D on a better connection to Revit. The connector enables the sharing of Revit and Rhino data between design collaborators without managing files and copies of the data, transforming how customers work on projects together. Moving on, let's look at how we're accelerating digital transformation by partnering with industry leaders to add value and reach new personas. Last year, we introduced advanced electrical design for Autodesk Revit, a Revit extension from Schneider Electric that fills critical BIM workflow gaps for our electrical engineering customers. This also paves the way for eventually connecting energy efficiency throughout the entire building life cycle and into operations. The opportunity here is huge, with about 1 million electrical professionals currently not using BIM. Each add-on subscription of advanced electrical design requires an AEC collection subscription, driving additional growth as we drive more Revit usage over time with this new user base. Also for Revit users, we've added real-time visualization capabilities of Twinmotion into the Revit workflow with our Epic Games strategic collaboration. We are moving more information upstream and providing real-time intelligence to designers and engineers about the performance of their designs. By combining real-time interactions into desktop and virtual work environments, distributed project teams can collaboratively evaluate changes. All Revit subscribers can now access Twinmotion via their Autodesk account. We also have a strategic alliance with Eptura, formerly known as SpaceIQ + iOffice, a leading provider of building operations software. The solution brings together Autodesk AEC collection and Eptura through a software integration. Our joint solution brings tremendous value to building owners and operators and even extends to our tandem digital twin solution. By helping them unlock the value of their AEC data throughout building operations, owner operators can improve cost, comfort and carbon outcomes. Next, I will highlight 3 exciting areas where we are leveraging our existing BIM portfolio to expand deeper, continuing in road and rail and into 2 newer areas, water and sustainability. First, some context setting. BIM is the backbone of digital transformation for the AEC industry. BIM is the process of creating and managing information for the build assets like an office building, highway, bridge or a hospital. It is based on a highly intelligent model, and Autodesk has been advancing BIM technologies for decades. There are 4 phases of BIM: plan; design; build; and operate. We continue to deepen our capabilities in the design phase, while expanding upstream and planning and downstream to the build and operate phases, driving end-to-end convergence within AEC. Now let's check in on the state of BIM penetration. BIM penetration doubled in the last 3 years. However, there is still significant opportunity with global adoption at only 16% in FY '23. Much of this is led by government mandates but global commercial companies are also spreading BIM around the world. The country view tells a more nuanced story. Even in the most BIM mature markets, we see most hovering at around 40% adoption with plenty of room to grow. And in FY '23, Japan and Germany instituted new BIM policies and Mexico has joined a list of countries developing BIM policies. As our customer base and portfolio has grown, we have revamped our customer engagement program, knowing that closing the loop with customers drive satisfaction and NPS scores. We have a 3-pronged approach. The first are our executive C-level customer councils, where we discuss business and industry issues. Next are our customer advisory boards, where product teams engaged with a diverse set of users to gather user feedback. And finally, we engaged with leading industry associations to aid their members in accelerating their digital transformation efforts. Now let's talk about our road and rail opportunity. Autodesk continues to be at the forefront of accelerating the transportation industry's digital transformation. With roads and highways representing 44% of infrastructure construction output and rail at 28%, these are 2 of the largest growth areas for Autodesk, representing a $2.5 billion opportunity. Our investments started in design and have expanded to support collaboration and digital delivery, creating additional potential users. Everyone loves a faster product, and our latest Civil 3D release delivered more speed for the core operations people use most frequently, increasing the responsiveness for opening and referencing files, panning and zooming and editing geometry. We continue to add more advanced capabilities, including streamlined corridor modeling, point cloud of workflows, APIs for customization and parametric components leveraged from Revit families. Our investments are paying off, and we are well positioned in infrastructure. It was hard to choose which win to showcase today. Our momentum with the U.S. Department of Transportation agencies continues to increase. For example, led by the Iowa Department of Transportation, BLA-BIM Alliance was selected alongside Autodesk to lead a pooled research initiative with 20 U.S. Department of Transportation agencies. Autodesk will help research and write a guide on how to evolve from CAD to BIM-based project delivery. That will influence the entire Department of Transportation ecosystem in the U.S. and also the Canadian Ministry of Transport. Moving on to the water infrastructure opportunity. We completed the Innovyze acquisition just 2 years ago in April of 2020 and are well on our way to making it a vital part of Autodesk. The Innovyze acquisition expanded our capabilities into the design of water networks and treatment facilities, while also adding asset management and operational analytics solutions for the operations and maintenance phase of the cycle. We can now address the needs of all stakeholders across the value chain, positioning Autodesk as the one-stop shop for water infrastructure. The total opportunity here is about $2.7 billion. We are continuing with Phase 2 of our business integration by moving the Innovyze perpetual license customers to subscription. We will target new water customers with hydraulic modeling and core design by activating the Autodesk channel and continuing our targeted geo expansion. Germany and France last year, and Japan and India in FY '24. Finally, with our Info360 offerings now available, we will accelerate adoption of cloud in operations with digital twin capabilities. As we continue our integration of this business, we are creating a blueprint for repeatable success with other acquisitions. Our Innovyze investment is paying off. For example, GHD, one of our large named accounts with an enterprise business agreement is using Innovyze solutions to drive strategic efforts around water, expanding the products that they access through their enterprise business agreements. This is also one of Autodesk's largest agreements signed out of our APAC region. Finally, let's look at our sustainability opportunity. Customers across AEC are looking to Autodesk to provide capabilities that will help them deliver more equitable and sustainable outcomes. Two areas I will focus on here are embodied carbon and renovations on older building stock and infrastructure. Sustainability analysis is a critical task for architects and engineers. Most of our customers face regulations and mandates where they are expected to calculate the carbon impact of their designs. In addition to embodied carbon capabilities in the Autodesk Construction Cloud, we have offered the ability to analyze a building's operational carbon generated by its operations like heating, cooling and lighting for energy usage with Insight 360 for years. And now we are completing the other half of the total carbon challenge by focusing on the embodied carbon impact of the materials chosen during the design. With the public tech preview, customers can analyze a Revit model based on its materials and provide rapid feedback to the product team. Industry estimates show renovations represent approximately 50% of projects and even higher in some markets. This may increase as the European Union is reviewing a package of laws to accelerate the renovation of buildings across Europe. And even better, our products are already very effective here. Revit, in conjunction with our reality capture tools, offers a way for existing structures to be accurately scanned and modeled using BIM, enabling better decisions on how to approach a renovation project. Having an accurate as-built is key to making trade-offs during a project. We have recently released the ability to visualize laser scans in our cloud viewer and store them in Autodesk Construction Cloud, giving customers the ability to use their favorite BIM tools and practices on both the new designs and renovations. Our investment in sustainability solutions is paying off. For example, Ramboll is partnering with Autodesk to advance sustainability across their entire ecosystem, including clear actions to drive the usage and adoption of Autodesk's sustainability solutions. Moving on, let's talk about the future of BIM and how our Forma AEC Industry Cloud will lead the way. No doubt, BIM has transformed the AEC industry. And while our customers are delivering amazing projects with BIM, there is still more work to be done to unlock more value with connected data, augmented design and real-world context, ultimately creating better outcomes for our customers. Forma is our AEC Industry Cloud and will reimagine BIM, leveraging next-generation technology to connect data, teams and workflows and enable more collaborative concurrent ways of working. Forma will enable our customers to accelerate their end-to-end digital transformation within AEC by delivering highly interactive and concurrent environments with a trusted model that evolves throughout the project life cycle and can be transformed into a digital twin for handover to the owner. With Forma, our customers will be armed with the capabilities they need to address modern day challenges from early-stage design planning through operations, enabling them to optimize decisions, increase productivity, improve collaboration and leverage real-time insights to deliver better outcomes like reduced carbon emissions and waste. Today, I'll share what's happening in the near term to accelerate the business value of BIM with our first Forma capability. For the first Forma offering, we are leveraging Spacemaker's powerful AI and predictive analytics engine to deliver new outcome-based design and free-form design capabilities for early-stage planning and design. We will radically simplify the process for starting a new project in the context of the real world. By focusing on the early phase, we are also delivering a net new capability to our Revit customers, further upstream in the BIM process. And with the bidirectional sinking of Forma and Revit data, we will be bringing our Revit customers on our Forma journey with us. As Andrew and Raji mentioned, helping our customers connect their data is a big opportunity for Autodesk to solve a major pain point, and that is just what we are doing with our data investments. Forma will unlock the power of our customers' data by providing the right data to the right people at the right time to deliver outcomes our customers value. We will move away from monolithic files to a trusted source of truth in the cloud. Along the way, we'll be enabling access to more granular data from our core offerings, structuring the data. So it's more accessible and creating knowledge and insights. The operate phase represents another opportunity for Autodesk and our customers who own and operate buildings and infrastructure. Tandem is our digital twin solution for AEC. A benefit of building information modeling is that the information in the model can be transformed into a digital twin. We started with a physical twin, basically a digital representation of the physical asset, and we have moved up the value chain to create an operational twin to do facility monitoring. Tandem can now be connected to operational systems like Eptura and IoT data to create a digital twin that provides insight for reducing costs and improving occupant experiences. So why do we win? The depth and breadth of our portfolio is unmatched. We have a unique portfolio of leading solutions across 3 major industry segments: buildings; transportation; and water. And we have the best end-to-end coverage across the BIM phases. Autodesk also has a track record of leading customers through transformation from AutoCAD to Revit and then into the cloud with our Autodesk Construction Cloud and collaboration offerings. We are well positioned to lead our customers to the future with Forma. And we have a tremendous ecosystem of customers, strategic partners, third-party developers and channel partners that expands our reach and relevance across the building, transportation and water industries. By bringing our strengths together, we are positioned to win and transform AEC. Thank you. And now I'll turn it over to Jim to talk about our construction opportunity.

Thanks, Amy. In FY '23, Autodesk made tremendous progress in solidifying our reputation as a technology leader in the construction industry. Our team has continued to strengthen our best-in-class solutions in both preconstruction planning and construction management with the launch of new products and capabilities as well as the addition of a powerful cloud-based estimating solution, ProEst. Autodesk Construction Cloud is proving that it is the solution to connect teams, data and workflows across all phases of construction. Today, I'll share more with you on opportunity and trends we are seeing in the industry as well as our product, go-to-market and customer success strategies to continue to grow our business in the global construction industry. As you heard from Amy, by 2027, the construction TAM is expected to reach $15 billion with more than 16 million professionals. Driven by the continued demand for infrastructure to meet the needs of a growing population, this creates a tremendous opportunity for industry transformation. The trends we're seeing throughout the industry should come as no surprise. Over the past year, I've had the opportunity to speak with customers across the globe and the 2 consistent themes I've heard of are the challenges in finding labor and planning for material cost escalations and availability. For years, the industry has been dealing with an aging workforce and finding and retaining new talent. In fact, according to the National Center for Construction Education and Research, 41% of the current construction workforce will retire by 2031, furthering an already acute industry problem. And in the last 3 years, cost for construction have seen meaningful increases as international shipping and logistic costs surge. As a result of these challenges, we've seen an acceleration of digital technology, both in adoption and availability. This availability has been driven in large part by a proliferation of venture funding and construction technology start-ups. For context, venture funding exceeded over $3 billion in 2022, up from an already robust $2.6 billion in 2021. Despite these challenges, we're continuing to see cautious optimism in the construction industry. BuildingConnected, the industry's most robust builders' network with over 1 million construction professionals, shows bid activities up approximately 50% year-over-year in FY '23. These bid invites represent real finance projects. In addition, the associated builders and contractors construction backlog indicator showed 9.2 months of backlog as of January 2023, the highest since the second quarter of 2019. At the same time, we're seeing momentum demonstrated in the growth of Autodesk Construction in FY '23. When looking at the last 5 quarters, we have tracked a revenue retention rate of approximately 115% to 120%, representing the year-over-year increase in the annualized value of construction subscription revenue from our customers that existed a year ago. We're also seeing strong results with net new customers. In Q3, we reported adding approximately 1,000 new logos, and I'm pleased to say, in Q4, we added roughly 1,000 more. And with more than 260% year-over-year growth in monthly active users across Autodesk Construction Cloud, it is clear that customers are realizing the immense value in using a technology solution that connects the entire construction life cycle. I also want to highlight the tremendous growth we're seeing in our powerful construction management tool, Autodesk Build. In FY '23, we saw approximately 340% year-over-year increase in monthly active users on Autodesk Build. As you can read in this quote from general contractor, Barton Malow, with Autodesk Build, both project teams and clients are able to standardize across one platform, resulting in a consistent experience. Now I'd like to share more about our product innovation and our industry-leading solution, Autodesk Construction Cloud. With Autodesk Construction Cloud, we're focused on connecting teams, data and workflows across all phases of the project life cycle on a single platform. From design to preconstruction planning out to the job site through handover in operations, this is connected construction. At Autodesk, we're making these connections stronger every day, enabling the data to be streamlined across the project stakeholders, setting us apart from other point solutions in the market. Our customers know that connected construction is essential to a project's success, and a key component to that is the ability to connect the design and preconstruction process. Making decisions early during a project offers the best opportunity to improve project outcomes like cost and schedule. This is shifting the way projects are procured with increased collaboration happening between designers, general contractors and subcontractors in the planning and design phases of the project. At the same time, we're seeing owners take a more proactive approach to project planning to ensure successful outcomes. In fact, collaborative delivery methods like design, build and integrated project delivery are predicted to be used on approximately 85% of projects over the next 3 years. According to research by Suffolk Construction, a typical $100 million project takes 18 months to build and 30 months in the design and preconstruction phase. A prolonged design and preconstruction phase exposes a project to all types of risks, such as design creek and price escalations, often leading to wasted effort, lack of predictability and scheduled delays. By tightly integrating design with downstream contracting processes, we can improve predictability for cost and schedule early in the process. Strengthening the connections between design and preconstruction is something Autodesk is uniquely positioned to do. With our industry-leading design tools, we are creating deeper connections to our preconstruction products and enabling the benefits of BIM in the construction process. In FY '24, we're doubling down on our preconstruction journey, tightly integrating our quantity takeoff and estimation tools in Autodesk Construction Cloud. Another core tenet of our product vision is data, specifically the idea of data federation. Let me take a moment to explain what I mean by that. On any given project, typically, there's a single account hub that owns everything with all other contributing teams plugging in. This model causes major concerns for privacy, information silos and data control. In a federated environment, each team has their own account, controlling the processes with saving, storing and sharing project information. This reduces the likelihood of disconnected or siloed information while allowing different project stakeholders to still control their own data. Last year, we announced Bridge, our solution to create a federated construction environment. With Autodesk Bridge, we are changing the construction ecosystem, improving the trust between owners, general contractors and subcontractors all working on the same project. While we're still early in the Bridge journey, we're getting great traction and exciting feedback from customers, and we'll continue to strengthen this capability, which provides a key differentiator in the market. New preconstruction integrations and data federation are only a small sliver of the nearly 300 feature improvements we've made to Autodesk Construction Cloud this past year, and we expect this R&D momentum to continue this year. Our team is committed to delivering new innovations that only increase the value of connected construction to our customers. In addition to our internal product innovation, Autodesk has built a strong network of strategic technology partners. When looking across our strategic investment and partnerships portfolio, our team is focused on 5 key themes: workflow automations, job site intelligence and productivity, data analytics, financials and payments and procurement. With strategic investments in partnerships and best-in-class solutions like Bridget, IRIS, Toric and Payapps, we're delivering workflow integrations our customers are asking for. This broadens with our best-of-breed construction technology ecosystem, underpinned by our shared extensible and trusted platform services. We currently have more than 240 direct integrations, allowing third parties to extend core capabilities in the cloud. And our customers are seeing the value. Last year, the number of Autodesk Construction Cloud accounts with installed integrations doubled. Finally, I want to remind you that Autodesk Construction Cloud is part of a much larger technology platform at Autodesk. These products and their foundational architecture are part of a modern technology stack built on Autodesk platform services. This gives Autodesk Construction Cloud the ability to innovate quickly and configure the specialized integrations and workflows our global customers require to meet local standards. Earlier, you heard Amy talk about Autodesk Forma. As we look to the future, we will tightly integrate Autodesk Construction Cloud with Autodesk Forma enabling even more compelling cross industry connections and opening the door for new ways of building like industrialized construction, which represents the convergence of design, manufacturing and construction. Now let's talk about our go-to-market efforts. As I mentioned earlier, we're seeing great success expanding into new business. Our team is focused on 3 key levers to accelerate our momentum with new accounts. First, we're going to continue to drive market expansion by continuing to target net new customers and year 1 expansion through the robust capabilities our solutions offer. Next, we're going to look at key workflows Autodesk Construction Cloud can displace in competitive accounts. And lastly, we have a huge opportunity with invited users. Each time a general contractor begins a project, they invite other project stakeholders to the Autodesk Build project. We have the opportunity to convert these invited users into purchase their own licenses so that they can have more control of their data and can use the tool for other projects they're working on. As I mentioned earlier, our federated data solution, Autodesk Bridge, makes this opportunity even more compelling. Another key driver in our success with new customers are the innovative pricing options we offer. The more choice we offer our customers, the better we're able to serve them. Whether it's a flex license based on consumption, single-user license or account licenses for large multiuser projects, we've heard from customers across the board that this pricing structure sets us apart from the competition. Next up is how we'll expand existing accounts. Many of our customers see the value in owning multiple Autodesk Construction products. In fact, in the last year, we've seen a 35% increase in the number of customers with more than 1 Construction product. By targeting single product accounts, we're expanding our customers into additional ACC products. And we've seen incredible success and expansion to our outdoor project-based licenses, which saw an 83% increase last year. This represents 36% of our construction ACV. Our innovative packaging strategy makes these expansion opportunities easy by providing customers the flexibility to add new workflows and capabilities as they need them. The channel represents significant global growth potential for construction, extending our sales team reach, capacity and capabilities. In order to best serve customers, we have a tiered channel structure for construction based on their expertise in selling construction technology. Our top-tier partners, construction elite partners, are investing in dedicated resources to not only drive sales, but also to deliver services to support customers onboarding and customized workflows. This partner program is an area where we've seen tremendous growth and now accounts for nearly 30% of our total construction ACV. This network is invaluable as Autodesk Construction Cloud expands globally. Last year, more than 50% of our international business came from our channel partners. And in regions like APAC, our channel partners have continued to expand the presence of Autodesk Build to new customers in India and Malaysia. It's also worth noting that our channel partners have been selling our design solutions for years, building strong relationships across the AEC industry. At Autodesk, we have roughly 75,000 construction service provider customers who are using our design tools, but do not own any of our Construction Cloud offerings. This represents an enormous opportunity to expand the use of Autodesk Construction Cloud in design accounts. Our channel partners will play an important role in this expansion opportunity. Now let's talk about our customer success efforts. First, how we're helping customers transition to Autodesk Build. Moving customers to Autodesk Build from PlanGrid and BIM 360 is a critical priority for our customer success organization. Our team has an in-depth transition strategy that includes a combination of best-in-class digital learning as well as guided adoption for customers. The goal is to make the process easy for the customer so they see the immediate value of the switch off their legacy product on day 1. We're also ensuring our customers have the proactive customer adoption and support they need. We know that a customer's ability to get up and running on Autodesk Construction Cloud quickly is critically important to their long-term success. Our team works tirelessly with our customers to make sure the technology they invested in works for them. This includes partnering on adoption plans, success metrics and process refinements. Additionally, our global channel partners will play an increasingly important role in helping our customers successfully adopt our Construction solutions. All of this is underpinned by our always-on customer support and Learn ACC, our on-demand learning center enabling customers and connecting teams at every stage of construction. In the 2 years since we launched our learning center, we've seen over 300% growth in course enrollments and 188% increase in active students. Ultimately, our goal is to build strong strategic partnerships. Messer is a great example of the partnerships our teams build with customers. Messer Construction is an Ohio-based construction manager and general contractor that provides leadership for complex commercial construction projects. Looking for a technology partner who would walk alongside them to achieve their business goals, they chose Autodesk Build as their project management solution. Our team worked closely with the Messer team to initiate a seamless rollout to their employees, resulting in significant monthly active user growth, allowing them to find immediate value in the technology. Now in year 2 of the engagement, you can see the continued growth in usage in FY '23 as they've embraced our tools in design, preconstruction and project management. Autodesk is a valued member of the Messer team, working together closely as they plan for the future of their business. As I visit customers, this story is not unique. Our team is committed to helping customers make the most of their technology investments. Looking across the construction technology landscape I see 3 key differentiators that set us apart from the competition. First, our ability to provide customers with connected construction. Autodesk Construction Cloud spans the construction life cycle offering best-in-class preconstruction planning and construction management capabilities. Coupled with our industry-leading design tools and our digital twin capabilities, we are uniquely positioned to truly deliver on the vision of connected construction. Second, our go-to-market strategy offers the most flexible business models in the industry and a construction global partner network that expands Autodesk's reach into new customers and new markets daily. Finally, our technology is just the beginning of our partnership. We are committed to helping customers uncover new ways of working and providing an exceptional customer experience throughout their journey with Autodesk. I am confident that Autodesk has the technology to transform the construction industry. Thank you. And now we'll take a short break. When we return, Steve Blum, our Chief Operating Officer, will share Autodesk's plans for delivering growth. [break]

Hi, everyone. Welcome back from the break. I'm Steve Blum, Chief Operating Officer at Autodesk. And this morning, I will review our plans for delivering growth in FY '24 and beyond. And this is the first time we've been together since I became Chief Operating Officer and we formed a COO organization. The reason we created the team was to bring together all facets of our go-to-market in 1 place to deliver a world-class customer experience, and it's already having a great impact on enabling us to make decisions faster, to reach clear agreements on customer needs and ensuring our priorities are aligned. And we've developed a mission for the COO team, which is we deliver a world-class customer experience that differentiates Autodesk in the marketplace, drives brand loyalty and delivers on our long-term financial results. And as you see at the heart of it is a focus on the customer experience and delivering financial results for the company. So today, I'm going to cover 4 specific topics and we're evolving the customer experience, and we're targeting customer segments with the greatest potential for growth, how we're continuing our business model evolution, and I will give you an update on how we're converting noncompliant users. And I'll start with the evolution of our customer experience. We have 3 core areas of focus over the next year: delivering customer outcomes and customer recognizable value, accelerating self-service everywhere, recognizing that customers want to self-serve as much as possible, and using data and insights to know and connect with our customers while optimizing the customer experience. I'll now give you a quick summary of each and will start with customer outcomes. Customers want to focus on the business outcomes that matter most to them. And we've proven that when we lead with outcomes with our customers, we build more strategic relationships. This is why we built the Autodesk Outcomes framework, which is essentially a methodology to capture our customers' value drivers, that's the why, and translate them into key business outcomes, that's the what. And then we underpin the outcomes with specific solutions, capabilities, workflows and, ultimately, Autodesk products. That's the how. It gives us a common language in supporting tools, which enable our customers to achieve better outcomes, and it also aligns customer needs with the technical solutions that demonstrate the most value. So our approach is changing from selling products to selling capabilities included in our industry clouds and Autodesk platform services. And over the next year, there are 3 core areas of focus. We're building intentional customer journeys, which include step-by-step outcomes-focused purchasing paths, leveraging both digital and human touch points. We're developing replicable solutions, leveraging the learnings from our large customer implementations, and we're codifying the IP into repeatable recipes that customers and partners can implement. Our focus in this area is on key sustainability outcomes, and we're enabling our customer-facing employees and partners to lead with conversations focused on outcomes. Our second area of focus in evolving the customer experience is self-service. So why is this important? Well, customers increasingly want the ability to solve their own problems with limited human interaction from the companies they partner with. For our smaller customers, we have to rely upon self-service to drive the customer experience in order to scale. But even our largest customers want to self-serve wherever possible. All customers benefit from higher productivity and have 24/7 access to support, and self-service empowers both our customers as well as our go-to-market teams who are focused on delivering a great customer experience. So over the next year, we will develop personalized self-service experiences in the following areas: we're building an adaptive purchase path that simplifies the buying experience and uses knowledge about the customer to make recommendations about offerings they can use to achieve their most important business outcomes. We're personalizing the trial experience to make it easier to find trials and to connect with either Autodesk via in-trial messaging or with the broader Autodesk community from within the trial experience. And we're focusing on personalizing the onboarding experience by tailoring the get-started content, making pathways to training and support easier to find and making it easier for our administrators to manage the user environments. We're also taking a digital-first, person-led approach to the customer experience, and we're focusing on these areas. We're adding more in-product integrations of the Autodesk Universal Assistant. It's available on AutoCAD now, and it will be added to other high-volume products like Civil 3D and Revit. We're expanding our sales chat capabilities, and we're expanding our conversational marketing approach so that we can identify customer intent in real time and deliver relevant content. And we're continuing to build out self-service automations across the customer life cycle so that customers can resolve their issues or questions without requiring human interaction. In an area of using data and insights to evolve the customer experience, listening to our customers is a critically important process. Our Voice as a Customer program helps us understand customer sentiment about their overall relationship with Autodesk and our partners. And in next year, we're focusing on the following areas: we're expanding our ability to take customer insights to action to close the loop with customers when they give us feedback. We're introducing advanced text analytic tools for the analysis of unstructured data such as chats, forums and social media. And we're introducing a customer journey management tool in practice that will allow us to map macro and micro customer journeys, assess them and then understand the impact of any redesigns on the end-to-end customer experience. All right. Let's move on to the next topic, which is targeting the customer segments with the greatest potential for growth. Specifically, we'll focus on how we will expand our business with our largest customers, and how we'll scale the acquisition, expansion and retention of the huge volume with smaller customers we have and that we continue to acquire. During the last couple of Investor Days, I've shared our approach with our largest customers using an account-based sales and marketing engagement model. And I shared that the primary areas of focus we're in leading with outcomes focused conversations and also having a focus on key executives by providing thought leadership content and having the ability, once again, finally, to be able to hold in-person experiences. We're using targeted marketing campaigns with outcome-based content and industry-specific success stories across the entire customer life cycle. And we're using value-based services to ensure that the value we discussed during the sales process is delivered to customers during the engagement. And I have a great example from last quarter of an engagement that followed this process. Arcadis is a global leader in sustainable design, engineering and consultancy solutions and has been an Autodesk's customer since signing its first EBA in 2013. We recently secured an EBA renewal, which has significant annual contract value growth and represents one of the largest deals we've ever closed. Core to winning, these were some of the account-based sales and marketing initiatives I just mentioned. We had a focus on executives. Our team built high-value relationships with all levels of Arcadis leadership by delivering not only technology solutions, but also advisory services to Arcadis' C-level executives. It positioned us, not just as a vendor, but as a true strategic partner. We have a focus on outcomes. We evolve the Arcadis customer success plan to focus on their most important business outcomes while also showing them what can be achieved with a better use of data and automation. Ultimately, these things allowed us to draw alignment between Autodesk's technology vision and Arcadis' goal, which positioned us as the most credible partner to guide them on their digital transformation journey. We value the relationship that we have with Arcadis, and we look forward to helping them execute on their vision. Now for the huge volume of small customers we work with, we have specific digital acquisition and expansion motions. From a horizontal perspective, our focus is on brand building. For customers, small and large, we need to continue to build our brand to make all aware of who we are and why we're the best company for them to partner with to make anything. We're also implementing a verticalized SEO optimized content approach to ensure we get the right content to the right users and personas in the specific industry segments and subsegments that we serve. And we'll be implementing a couple of product-led growth pilots over the next year. Product-led growth is all about making offerings available before monetization is required and taking an expansion approach before you trigger a paywall. As Jeff mentioned earlier, we've had success with product-led growth in the past with Fusion, and we have a pilots plan with AutoCAD web and Forma during the next year. And of course, it is critical to retain our small customers as well. To do this, we have to take a digital-first approach leveraging data, machine learning and self-service to be most effective. Across the customer life cycle, we need to have marketing journey orchestration by creating marketing cohorts for targeted and trigger-based campaigns. And we need to use data and machine learning to identify the at-risk cohorts so that we can implement human touch points to ensure we drive renewals. Okay. We'll now move to our next topic, focused on continuing our business model evolution. At the last Investor Day, Jeff shared this slide with you. And he mentioned that before the release of Flex, we had 2 business model offerings, a named user subscription model and an all-in high-value consumption model with our enterprise business agreements. The introduction of Flex gave our customers more flexibility and choice as subscription customers to now optimize their environments using both subscriptions and Flex for consumption. Subscriptions are the most appropriate for frequent use, and Flex is most appropriate for infrequent use of our offerings. And of course, customers could choose to use Flex as an all-in consumption model. And Flex has been well received by customers and is serving as a growth driver for us. After only 1 year in the market, approximately 20% of customers are buying additional tokens above and beyond their initial purchases. 88 different Autodesk products have been used via Flex. And while 70% of transactions have been purchased via our eStore, many of which are from new customers or new logos, 80% of token purchases have gone through transactions with our partners. Now we've introduced a new transaction model for Flex, whereby customers will still receive ongoing support and services from their partners, but they'll purchase directly from Autodesk, leading to better customer data and a streamlined sales process. Customers will see price parity based on volume, not negotiated deals regardless of where and how they purchase, and everyone, meaning our customers, Autodesk and our partners are connected in seeing the same data. The new model went live in Australia in Q3 of last year, and we'll be introducing this new transaction model for Flex in North America and EMEA next week on March 28, and in Japan in Q2. And I do want to be very clear. Partners will continue to be a critical part of our business now and in the future. But this new transaction model will give Autodesk a more direct relationship with our customers. And I also want to give you an update on our channel framework evolution. We've been on a journey of moving the incentives from the front end on the transaction to the back end where they can be tied to growth in value-added activities. In this new fiscal year, we're taking the final step in that journey by moving all of the incentives to the back end. As such, our solution providers will earn 100% of their incentives based upon driving growth and delivering value-based activities. And as I've done in the past, I want to give you an update on the scale and coverage we get by working with our amazing partners around the world. We have approximately 1,200 solution providers globally representing Autodesk every day. Now that's down 100 from the last Investor Day due to partner consolidation, which has been a good thing. They serve as our local superpowers in approximately 175 countries around the world. And through those partners, we get scale. For each Autodesk in a sales or customer success role, we have approximately 3.5 partner employees doing those same tasks. All right. Let's move to our last topic, converting noncompliant users. We currently have approximately 15 million noncompliant users today. This is the same number that we shared with you at the last Investor Day. And while we've converted many to genuine software, we continue to detect more noncompliant usage due to better detection. Our decision to plot of Russia will also contribute to more noncompliant usage. As a reminder, we view usage of products, meaning session started over the last 90 days as opposed to versions used as the higher probability conversions. And it's important to note that the hardening of our systems is absolutely helping reduce noncompliant usage. We've been on a hardening systems journey over the last several years and have implemented this on many fronts, including introducing a named user model as opposed to using serial numbers. We removed off-line activation processes. We implemented a student verification process and a verifiable trial customer process. And we're now adding concurrent user limits to our products. It already existed in Fusion, and we recently added it to Inventor and Civil 3D. When customers try to log in the third time concurrently for the same subscription, they get a message that they need to exit one of their current log-ins. This capability will be added to all our other offerings later this year. And on this chart, you can see we're getting great results from the system hardening changes. In the last 2 releases, the amount of noncompliant usage has dropped dramatically, practically to zero. As a result, noncompliant users will be isolated on older releases of software that will eventually need to be updated with compliant software. And while we've been successful in reducing noncompliance for stand-alone licensed products, we did not harden our network license products. And of course, there were still old perpetual licenses, which are accessible and contribute to noncompliant usage. Now we've shared in the past our implementation of in-product messaging to noncompliant users when they are detected, and that capability continues to scale. We have in-product messaging in our 9 most high-volume products, and that capability is now live in 70 countries, up 20 since the last Investor Day. So the 15 million detected noncompliant users, we believe that approximately 2 million of those are targetable. And what I mean by targetable is that these are the people who have been identified from within our paying customer base who are using noncompliant products. This is the primary area of focus for noncompliant usage conversion. And by focusing that way, we have generated many success stories, and I want to share 1 example. We work collaboratively with a large multinational company with operations in China who are seeking to adhere to the same software standards and ensure access to the latest and safest software for all its employees across the globe. We helped the customer conduct the cell audit that identify gaps in its operation in China, and we then crafted and optimized this bespoke subscription plan. As a result, we agreed to an approximate $5 million contract in Q3 of last year, our largest ever license compliance agreement. So to summarize, we expect to win as we are well positioned to deliver great customer experiences and drive long-term financial results. And our core areas of focus to drive growth include continuing to evolve the customer experience, targeting customer segments with the greatest growth potential, continuing our business model evolution and continuing to convert noncompliant users. By executing in these areas we are prepared to drive growth in FY '24 and beyond. Thank you very much. It is my pleasure to now turn this over to Debbie Clifford.

Thanks, Steve, and thank you all for joining us. My story today has 3 distinct sections: where we've been, where we are today and the path to our fiscal '24 goals, and where we're going beyond fiscal '24. So let's start with where we've been and the factors that will continue to be the bedrock of our future success, our resilience, our growth opportunity and our discipline and focus. The new normal is that there is no normal. Macroeconomic uncertainty is being compounded by geopolitical, policy, health and climate uncertainty. I'm thinking here of generational movements in monetary policy, fiscal policy, inflation, exchange rates, politics, geopolitical tension, supply chains, extreme weather events and, of course, the pandemic. These increased the number of factors outside of our control and the range of possible outcomes, which makes the operating environment harder to navigate both for Autodesk and its customers. With the benefit of hindsight, setting fiscal '23 financial goals way back in 2016 created a challenging path for us. Cast your mind back to 2016. The U.K. voted to leave the European Union. The number of people using mobile devices to access the Internet overtook desktop for the first time. And the Chicago Cubs won the World Series for the first time since 1908. A lot has happened since then, which resulted in us falling short of our goals even while growing our revenue, margins and free cash flow significantly. The factors that enabled us to perform strongly despite a challenging macroeconomic, geopolitical, policy and health environment remain the keys to our future success. The first factor is the resilience of our business. Our industry-leading products are highly valued by our customers and embedded in their workflows. They generate large recurring subscription revenue streams, which have strong retention rates and give us some visibility into the future. It provides us with a resilient foundation, which is more valuable in uncertain times. You can see evidence of the resilience of our business model if you compare our financial performance during the global financial crisis that started in 2008 and the recent COVID-19 pandemic. During the global financial crisis, represented by the purple or bottom line on this slide, we were selling perpetual licenses, and our revenues declined around 30% during the midpoint quarters. In contrast, during the pandemic, represented by the green or top line, we saw sustained growth throughout, with the 12% revenue growth we reported in Q1 fiscal 2022. This resilience was not a surprise to us. During the global financial crisis, recurring maintenance payments, which then made up only around 40% of our revenue, grew each year. But as you can see in the chart above, this was overwhelmed by the 60% of revenues from perpetual licenses. Having now largely completed the business model transition to subscription, 98% of our revenue is recurring with customers increasingly unable to access our products without a current subscription and with new sales layering on top of a growing renewal base. Our diversification at scale across geographies, products and customers also makes us more resilient. We sell around the world, have multiple product families across industries and sell to a broad spectrum of customer sizes. Another important factor of our resilience is the volume and scale of our growth vectors. You've heard a lot about them already today, so I won't dwell on them here. But the key point is that we have a large and expanding TAM, which enables us to compound growth. And finally, we're attacking those opportunities with discipline and focus, balancing the opportunities on the road ahead with the journey that gets us there. That means thinking and planning strategically, while being agile and adaptable in our execution, constantly evolving and propelling us into the future while prioritizing and sequencing investment required to get there. And that means steady investment across the cycle, neither investing too much at the top of the economic cycle nor too little at the bottom. Discipline and focus maximize our potential opportunity realization, while mitigating the risk of having to make rapid and expensive catch-up investments later. We're not just looking to have industry-leading growth, although we often do, nor are we just looking to have industry-leading margins, although we often do. On average, and over time, we are looking to have an industry-leading balance between growth and margins, and we often do. We think this balance between compounding growth and strong free cash flow margins captured in the Rule of 40 framework is the hallmark of the most valuable companies in the world, and we intend to remain one of them. Now let's shift gears and talk about our path to the fiscal '24 targets and some of the onetime impacts coming into play this year. We set out our fiscal '24 goals last month on our earnings call. It's a complicated picture, which is why I'm going to spend some more time on it here. But the key point is that excluding one-off impacts, we expect the business to continue to grow comfortably in double digits in fiscal '24. But there's a lot going on under the hood. Let me dig into the 2 most important things. First, as we told you a few weeks ago, our cash tax rate will return to a more normalized level of approximately 31% in fiscal '24, up from 25% in fiscal '23. We accrued significant tax assets as a result of the operating losses we generated during our business model transition. As you can see on this chart, growing profitability was steadily consuming those tax assets. But in fiscal 2023, the rate of consumption accelerated due to Section 174 of the tax code regarding the tax treatment of R&D costs. In the past, companies have received a tax deduction for R&D costs in the year in which they occurred. Under the new rules, tax expenses are capitalized in the year in which they occur and then amortized over 5 years for domestic expenditures and 15 years for international expenditures. By capitalizing our R&D expenditures for tax purposes, our taxable profit before tax significantly increased in fiscal 2023, as you can see on the chart, and we used the majority of our remaining tax assets to reduce the resulting higher cash tax liability. As we expect our R&D investments to continue to grow, we will continue to experience a tax drag for the foreseeable future, but absent changes in tax policy, we expect our cash tax rate to remain in a range of around 31%. And second, as we told you at our last Investor Day, we are transitioning away from multiyear paid upfront to annual billings. As we said then, we believe this will generate more predictable cash flow for Autodesk along with higher price realization, while still allowing our customers to retain price certainty with a multiyear contract term. Since then, we've been working hard to prepare our back office to handle this change in an automated customer-friendly way and to work with our channel partners to ensure their readiness for the transition. I'm pleased to announce that we're going live next week. As we've highlighted before, the switch from upfront to annual billings for most multiyear customers creates a significant headwind for free cash flow in fiscal '24 and a smaller headwind in fiscal '25. Change in deferred revenue increased fiscal '23 free cash flow by $790 million, but will reduce fiscal '24 free cash flow by approximately $300 million. The switch to annual billings for multiyear customers and a smaller multiyear renewal cohort are the key drivers of this $1.1 billion swing. The transition will also affect the linearity of free cash flow during the year, with Q1 fiscal '24 free cash flow benefiting from the strong billings in Q4 fiscal '23, and our largest billings quarters in the second half of the year, proportionately more impacted by the switch to annual billings. We set out the net effect of all this at our last Investor Day and the trajectory remains broadly the same. Digging into the moving parts of that a bit deeper in the bars on this chart, which is illustrative and not drawn to scale, you can see that the shift in long-term deferred revenue creates a significant headwind in fiscal '24. As this drag dissipates over fiscal '24 and fiscal '25, and we rebuild our book of annual billings from the trough in fiscal '24, free cash flow growth should accelerate materially. We will feel the benefits of the transition beyond fiscal '26, not least in the shape of more consistent free cash flow growth. Just as our shareholders seek to generate consistent high returns with low volatility for their investors, we are seeking to generate consistent high returns with low volatility for our shareholders. This is what we mean when we talk about being a Rule of 45-plus company. Our business model transition increased our growth potential and reduced the volatility of the returns we generate. We expect our free cash flow transition to do the same. And as software markets and models continue to evolve, we will seize any opportunities that emerge to increase the growth potential and consistency of Autodesk. Let me finish with where we're going. I'll briefly recap our long-term growth drivers, then talk about how our capital allocation will support that growth and finish with our operating model. Andrew set out at the beginning of this presentation, how next-generation technology and services, end-to-end digital transformation and leveraging unique growth enablers provides a robust framework for growth. Amy, Jim, Jeff, Diana and Steve showed how we're seizing those opportunities today and our plans for the years ahead. As I said earlier, the key point here is the breadth and scale of our growth vectors, and our disciplined and focused pursuit of them. The breadth and scale of our growth vectors translates into a broad array of volume and price opportunities for Autodesk to grow sustainably. The biggest driver of our growth comes from our core business, driven by an expanding product subscription renewal base and continued success with strategic enterprise-level partnerships, both of which also benefit from overall GDP growth and inflationary price increases. We continue to expect our efforts to monetize noncompliant users to be a long-term steady growth driver. Shifts in product mix, driven by continued BIM proliferation around the world as 1 example, should continue to be a price driver. And over the long term, platform services should add value for our core users. On average and over time, we expect these factors to drive revenue growth in the 7% to 10% range. On top of that growth range, we expect to drive incremental growth from expansion into adjacent verticals. You've seen us start to do this already through our investments in construction and water infrastructure as well as our nascent offerings and building operations. And although we know share shift takes time, we expect Fusion to continue on its journey to capture the shift to the cloud and manufacturing. And our ability to drive higher price realizations should continue through our unique Fusion extensions model. On average, and over time, we expect adjacent verticals to drive incremental revenue growth in the 1- to 4-point range. And finally, we expect that the evolution of our business model could drive incremental revenue growth in the 1- to 2-point range, stemming from things like optimization of our go-to-market framework, consumption-based offerings and a continued shift towards selling more direct. So as we step back, we have a broad and diverse set of volume and price factors, which we expect, along with disciplined and focused investment, can collectively drive sustainable top line growth in the 10% to 15% range on average and over time. Turning to capital allocation. We will continue to deploy capital with focus and discipline to support our strategic goals while returning capital to shareholders to offset dilution. Discipline and focus means deploying capital across the economic cycle, not spending too much at the top of the cycle nor too little at the bottom. Discipline and focus also means making choices, and that means constant optimization of our investments to ensure investment levels remain proportionate and directed at our largest opportunities. Discipline and focus enable Autodesk to remain sufficiently well invested to realize the significant benefits of its strategy while mitigating the risk of having to make expensive catch-up investments in the future. As you heard from Raji, we're undertaking multiyear investments in our platforms and services, which will enable our customers to generate more predictable, consistent and sustainable outcomes. And will enable Autodesk to realize greater engineering velocity and efficiency, transition from file-based data to data in the cloud, and develop a much broader and deeper third-party ecosystem. We will continue to invest through M&A in attractive adjacent verticals within and between the industries we serve to connect more workflows and data with end-to-end solutions. You've heard today the success we're having with acquisitions such as Innovyze. If rates continue to rise, it will likely create more acquisition opportunities over the coming quarters and years. As ever, we will deploy capital patiently and with discipline and focus. And as you heard from Amy earlier, the total opportunity in water is about $2.7 billion. We will continue to return capital to shareholders through share repurchases, which offsets stock-based compensation dilution. But we are deploying that framework flexibly buying more shares below the cost of issuance and fewer above the cost of issuance. Put another way, the cash expenditure on stock-based compensation as a percentage of revenue is lower than the GAAP stock-based compensation expenditure as a percentage of revenue. As you can see on this slide, the flexible application of our strategy has actually resulted in a short-term reduction in our share count. For the foreseeable future, we believe that the framework of investing organically and through acquisitions, while buying back shares to offset stock-based compensation dilution, will maximize the returns for shareholders. If at some point in the future, it makes more sense to shift the mix of capital deployed towards larger share repurchases or dividends, then we will do so. Now let me bring this all together. We're managing the business to a Rule of 40 framework. We believe that multiple growth vectors and a resilient business, combined with disciplined and focused execution and capital deployment, will enable us to grow revenue in the 10% to 15% range with free cash flow margins in the 30% to 35% range. While we see opportunity ahead, which we do, we will invest more to realize that opportunity. If we see proportionately less opportunity in the future, the mix between growth and free cash flow margin will shift accordingly. Our intent is to reach a Rule of 40 ratio of 45% or more over time. While macroeconomic and FX headwinds, along with sustained, but disciplined investments in our products and platforms will slow the rate of margin improvement, we continue to expect non-GAAP operating margins to be in the 38% to 40% range by fiscal '26, albeit more likely now in the lower half of that range. We continue to see scope for further margin growth thereafter. GAAP margins will further benefit from stock-based compensation as a percent of revenue trending down towards 10% and beyond over time. So in conclusion, Autodesk is a high-quality, resilient business with industry-leading products that are highly valued by our customers and embedded in their workflows. We have a high volume of unique growth vectors, which gives us a large and expanding TAM and a compounding growth profile. We are deploying capital and executing with discipline and focus, generating strong operating margins with the opportunity to expand over time. As a result, we are consistently a best-in-class Rule of 40 company. balancing revenue growth and free cash flow margins to generate compounding returns. Now I'll hand it back over to Andrew for closing remarks.

Thank you, everybody. Today, we talked about the strategies and tools that will drive many years of profitable growth for Autodesk. We showed you the 3 critical areas to focus on, how we're building out next-generation technologies and services. how we're driving end-to-end digital transformation within and between the industries we serve and how we're leveraging unique growth enablers. You saw how we're using real-time and immersive experiences to transform design and make. What used to take hours or days will be done nearly in real time with real-time intelligence that informs designers and engineers about the performance of their designs and that we will combine these real-time interactions into desktop and virtual work environments that allow distributed project teams to collaboratively evaluate the changes that are visualized in real-time. We talked about how we are accelerating end-to-end convergence within the industries we serve by driving data across the asset life cycle and how our industry clouds, Fusion, Forma and Flow, will get progressively more powerful over the next 5 years from adding vertical-specific capabilities and by leveraging common data and product environments, real-time and immersive experiences and shared extensible and trusted platform services. And we showed you how our high-quality and resilient business model will enable us to deliver sustainable double-digit growth to become a best-in-class world company that balances revenue growth and free cash flow margin to generate compounding returns. Thank you.

Welcome, everyone. I hope you found those presentations stimulating and useful. We've now got all of the presenters here with me for a live Q&A session, and we'll move on to that. Before we do two reminders. Firstly, if you have a question, please put it in the Q&A tab in Zoom. And secondly, a reminder to what we said at the beginning of the day that we make forward-looking statements during the Q&A. Please refer to our SEC filings for information on risks and other factors that may cause our actual results to differ materially from these statements.

While we're gathering those questions, I'm just going to start with a question for Andrew. Andrew, what are the three things that you want investors to take away from the presentation today?

Yes. Simon, one of the things that I think it's really important that people remember is, first and foremost, Autodesk is a technology company, and next-generation technology is going to play a critical role in our growth and our product strategies, moving forward. This notion of connecting data, projects and teams together in new ways in the cloud with immersive and highly real-time experiences, all powered by algorithms and machine learning algorithms and artificial intelligence is core to what we're trying to do. The next thing that's really important is that we're driving digital transformation within and between the industries we serve. So we are on a multiyear journey to connect, design and make together in the cloud. And we're doing that by bringing the existing products into the cloud ecosystem, but also building out the new industry cloud environments, Fusion, Forma and Flow, so that we can change the way our customers work, not just evolve it to some kind of new cloud-based process. And our customers need this, they're looking for it, and they're looking for new ways to digitize their businesses. And the last bit around the unique business drivers that we have. Look, we have our business models and our business model evolution. We offer more ways for people to incrementally engage with sophisticated and complex technology than anybody else in the industry. We move from subscription all the way to consumption and even consumption plans that go all the way down to the smallest user in our business. And I think it's a really important differentiator. And I hope you got from Steve's presentation how we're evolving some of our go-to-market motions to more effectively reach more and more people in our ecosystem in novel and unique ways that are really only ways that we can do, self-service, modes around self-service, the ability to reach deeper into our customers' data and understand how they are using the products and how we can help them use those products. Doing initiatives around product-led growth with some of our newer products and going out there and helping customers understand what we're doing and use community and engagement with our users to spread growth of new product capabilities, it's a big lever for us, moving forward. And of course, the last one, which is really important and very unique to Autodesk is this notion of driving convergence between some of our industries, especially between construction and manufacturing because the drive to industrialized construction is an increasingly important focus for a lot of our customers. And we are the company that straddles both of those industries in very unique ways.

Awesome. So by tradition, we're going to start with Jay at Griffin joining us for about his 103rd Investor Day -- Autodesk Investor Day. So at AU and today, Andrew said that the functionality of the 3 clouds lie on common technology, how much further can Autodesk extend that commonality?

Yes. So let me talk about this first, and I'm going to hand a piece of that over to Raji. When you're looking at common technology that's used internally, for instance, in Fusion, Forma and Flow and the rest of our portfolio of products that connect things together, a lot of that we're going to develop internally and create it internally. But when you look at our customer ecosystem, where you expose our platform services to the customer ecosystem and then people that build things on top of our platform ecosystem, you're going to see a much broader portfolio of capabilities that our customers see exposed to them that they can stitch together. How far that can go, I'll let Raji comment on a little bit.

And in terms of -- one of the key things I think, Andrew, building on what you said, is I usually joke about this fact that you can actually create like a thicker middle. And that thicker middle is what I showed off as our capability map, but it drives that commonality, goes fairly deep. And it's driven by the fact that it is backed by our unique portfolio, which is spanning all the way from plan to operate and multiple industries and multiple infrastructure. That's what helps us build that common capabilities that help one industry, but it can actually serve every industry. I'll give you a concrete example. When you start to think about connected data and the things that we're rolling out with Fusion and things like we're rolling out APIs, it's a model that we're using, which is rinse and repeat. When we are ready for Forma and Flow, it would be leveraging the same learnings that we have had with Fusion and that sort of granular data and the APIs that we have built. It would be extending it to those industry clouds. Another great example would be like our Tandem and some of the technologies around immersive experiences that we're doing in the wild. I think these are technologies, initially, we start off with a particular industry, like AC in this case. And then soon, you will see that sort of expand to the other industries. Digital twin is going to play a huge role in terms of what it needs to achieve on the shop floor. And so I can absolutely see that technology really spanning over. And that creates unique advantage for us, again, driven with our portfolio that spans across these industries.

So a question from Elizabeth at Morgan Stanley. How soon could we see platform services Forma and Flow in market? What are the biggest hurdles to achieve platform services' vision, technology changes, user behavior? And what do you expect to be the biggest benefit to the model, the opportunity to increase monetization per service, accelerate share gains, et cetera?

That's really like four questions. That's a long question. Look, before I hand it over to Raji, let me just make sure I clarify something for everyone. . Fusion, Forma and Flow are our new industry cloud environments, the cloud-native environments that transform the way our customers connect design and make. Fusion, obviously, the most mature of them, Forma and Flow maturing over time, these are built on top of our platform services, right? And those platform services have shared capability that allow those various industry clouds to talk to each other and talk to within the various disciplines within each one of the industries. So I just want to make sure we're super clear on that about the role that Autodesk platform services play. Now with regards to some of the obstacles and challenges and monetization opportunities, I'll let Raji talk about that a little bit.

Elizabeth, I'm going to take your multipart question, first, actually address the hurdle part here. Having seen this rodeo before, I'll as say, from a platform service, usually, there's failure when we don't move with speed or if the industry or the customers are not ready to adopt, they are so far ahead that they're not ready to adopt, or if you rush into monetization. So those are the things that usually set you up for failure. What I like about what I see at Autodesk and how we are approaching this is really being very focused around these problems. The first one I would say is really moving to speed. You see us not waiting to launch this across industry clouds. We're starting with Fusion. We're going to fast follow with Forma and Flow. And the way we are opening up our capabilities in terms of APIs and data, I think it's naturally going to [Technical Difficulty ] trading us with our customers. You saw me talk about in the presentation where people are using this, they are excited about it. They want more. And we're learning from that. I mean not everything that we put out there is going to be successful, but how fast we move and iterate with our customers is going to be important. The second one I want to talk about is the fact that are our customers ready to use this? And I feel that this is a pull situation where you have customers -- you saw me share data around APIs. That's 48% year-over-year. And so our partners are excited about this. Our customers are excited about using the sort of headless services and APIs and SDKs because they see the connection of that in being able to actually connect their workflows and going to the digital transformation. I think that's an important one because I think the time is right for us to be able to go do what we are planning to do. And the last one I'll talk about is monetization. Again, it probably addresses your second part of your question, is, for us right now, the focus is speed, value and adoption. Speed for our internal employees because a lot of the platform services is the same ones we used to build our customer innovation, and we see productivity in being able to do that through the common shared capabilities. And then from a value. I think when customers see value, I mean, there's going to be definitely that ability and sort of ultimate -- over time, we can monetize that. But for that, we are watching adoption. We want to make sure that value is sort of something that a customer see and our partners feel. And I think that is key for us. So this is the kind of stuff that actually sets us up and -- from our success through our platform, and we see our partners getting excited about it. We see our customers excited about this as well.

I also want to remind people that 35 years ago, Autodesk became an ecosystem player by people customizing AutoCAD to various capabilities and turning it into things that we never imagined, and connecting processes in ways we never imagined. That same motion now is being moved to the cloud at a much higher velocity and with a much more broad and deep portfolio of capabilities. So this isn't something that's unfamiliar to us. We've been doing it for years, and now we're just doing it in the cloud with a much more powerful portfolio of capabilities to do it with.

Which tees up my next question perfectly, which is from Saket at Barclays, what mix of total revenue comes from SaaS currently? And how will the move to these clouds change that mix long term?

Saket, good question. Okay, I'm not going to answer that directly, but here's the one thing I will say to you. It's getting harder and harder to tell what is SaaS and what isn't because -- especially because of the work we're doing with platform services, more and more of even our core desktop products are getting connected to the cloud in interesting ways. . Even functionality and features that show up in the product are not actually desktop services. They're actually cloud-based services that are tightly integrated. So a lot of those desktop applications, Revit, AutoCAD, Maya, they already have a very hybrid nature to them, and they already are starting to look more and more connected into SaaS. Now what I can say is the biggest proxy we have for our cloud native capabilities is what we -- is how we break out our make revenue. And you can see it's growing twice as fast, roughly speaking, as the core business. And that's the kind of thing you want to see. That's the thing that sets the tone for the future. And that's what, I think, you should pay attention to in terms of the native cloud business. But total SaaS, it's getting harder and harder to see what's SaaS and what isn't.

Great. So let's go on to Joshua from Wolfe. How can investors gauge the impact to your business as the partner ecosystem shifts from pure resellers to the expert network you mentioned during the presentation? And what steps are you taking to get partners to rally around the industry cloud vision?

Yes. So I'm going to hand this one over to Steve. I'll just add in the beginning that this is something that Steve and his team have been working on for some time. But Steve can take you through how we've been managing this evolution. Steve?

Yes. Thank you, Andrew. So we've been working with our partners to become solution providers for many years. We started signaling to our partners a long time ago that their value add was going to go well beyond just being resellers. They're going to need to be system integrators. As we move to cloud, they have to be system integrators. They need to be providing consulting services, that really app developers and IP developers and their ability to integrate into Autodesk web services is absolutely critical to their success in solving our customers' most important problems in helping them deliver on their outcomes. So we've been preparing them for a while. Our best partners are well on their way, and they're adding a lot of value. Some of the development that Raji was just talking about is being done by our partners that -- and by the way, one term, I want to make sure you're getting comfortable with because we talked about partners a lot and we talk about resellers, we want to talk about solution providers. That's how we're framing our resellers of the past. They're solution providers. They're out there selling our solutions, but they're also adding value on top of that, again, in the areas I just mentioned. So our partners are ready. They see this as a big opportunity. We're enabling them to deliver on that. And from my presentation, I also talked about how we're [ codifying ] some of the IP on sustainability outcomes and making that available to our partners. They're taking that, and they're replicating those solutions out in the market. So you're going to see our partners continue to go add more value over time as we move to our industry clouds.

So let's take another partner question from Jay again at Griffin. Regarding the language in the 10-K on sales model transitions, evolution, what is the rationale for and end game of the planned changes?

So again, Jay, this is a natural evolution of things we've been working on for a while. And again, I'm going to turn this over to Steve so he can talk through this and how it connects to other things that we're doing as we evolve our capabilities and how we deal with our partners.

Yes, thanks. So it's -- we've been talking about getting a more direct relationship with our end customers. And we're on a journey, and that's continuing. And as you saw with our new transaction model for Flex, we're engaging closer with our end customers. . We also are engaging closely with our solution providers. When we move into this new transaction model for Flex, we have the ability to share data. We can see the customer data and usage, our partners can see it, our customers can see it. And we're collaborating to make sure that they have the ability to help our customers be more successful. So think about that we've been investing in our ability to automate and connect directly with our end customers, and we're also taking that same approach with our solution providers. We want to work closely with them. We want to integrate their systems together with our systems so that we can ultimately deliver the highest value for our customers to help our customers be most successful with their most important business outcomes.

Great. So I guess a question from Simon at -- ex-analyst. Debbie, could you tell us more about the growth algorithm you outlined with a focus on the top line drivers?

Sure. So on the last earnings call, we talked about having a planning parameter range of 10% to 15% growth for revenue. And in the slides that we presented today, we tried to break that down a little bit more to help you understand where that growth is coming from. And the way to think about it is it's coming from 3 primary buckets. One is our core product subscription business. Year in and year out, the growth range should be roughly 7% to 10%. That comes from expansion into existing accounts. It comes from strong renewal rates. It comes from price increases. It comes from selling higher-value products. Given all those factors, we think that, that translates to that roughly 7% to 10% growth range. . The second factor is the investments that we've been making in adjacent opportunities, market opportunities. So things like construction, water infrastructure, you've seen us already make investments there. We believe that continued investments there, also in things like owners and operations, that should deliver another 1 to 4 points of incremental revenue growth over time. And then finally, we always are making steps towards optimizing our go-to-market model. Steve has just talked about some of those. But things like consumption-based pricing, selling more direct over time, we think that, that could generate another 1 to 2 points of growth. So if you zoom out, if you pull that all together, that's what gets us to that revenue growth range of roughly 10% to 15%. All of this is in spirit of our goal to try and achieve a Rule of 45 ratio over time. And all of these numbers are in the spirit also of setting ourselves up for success in both fiscal '24 and over the long term.

Great stuff. So let's go on to Jason at KeyBanc's question. It's a good one. It sounds like the DoTs are using the extra funding [ environment ] to revisit their technology stacks. Does this lend to a rising tide lifting all boats for Autodesk and its main competitor? Or does Autodesk feel they can capture outsized share?

Jason, I think this is a really good question, all right? Because the DoTs right now, they aren't just looking at buying new tools to do the work that's coming in. They're taking some of this investment and they're actually reevaluating the 10-year horizon of what they want with technology. . And most of them are doing exactly what the rest of our customers are doing. They want to digitize more. They want to connect processes more. They want to get engaged with open systems more. They want to be able to customize things more to their particular needs. This is where Autodesk 10-plus year investment in the cloud is going to make a big difference. So no, this is not a float-your-all-boats scenario. There is going to be change. And our customers are going to be demanding it because they need investments in forward-looking technology, not legacy systems that are stitched together with professional services.

So let's move on to Nay at Berenberg. Can you also talk about Autodesk Construction Cloud's competitive positioning against Procore?

Sure. Let me talk a little bit about ACC, or Autodesk Construction Cloud, relative to Procore or other competitors around the globe. First of all, from a product perspective, we're in a unique position to really deliver on this vision of connected construction. Our industry-leading design tools, coupled with our best-in-class preconstruction capabilities and, of course, our on-the-job site project management and cost management capabilities tied to our digital twin ability, so we really are unique in our ability to deliver that end to end. I would also say, if you look at the capabilities around data -- particularly during the presentation, I talked about Autodesk Bridge. Autodesk Bridge is our data federation strategy. It's really quite a key differentiator for us in the market. It allows project teams to own their own data, and that is proving to be a key, key differentiator for us. Then if you look at our go-to-market -- from a go-to-market perspective, we have the most flexible business models of all our competitors, whether you want to buy a single-license Flex or account based, we can meet the needs of our customers today. And then the other aspect I would say is our global reach. You heard Steve talk about our channel partners. Our channel partners are playing an incredible role in helping us expand and scale Autodesk Construction Cloud. And I certainly expect that to continue. And of course, I'd be remiss if I didn't talk about the fact that Autodesk Construction Cloud is built on Autodesk's platform services. It allows us to move faster. It allows us to scale globally. So I think there are several differentiators when we consider -- compare ourselves to our competitors globally.

So let's move on to manufacturing. So Matt from Mizuho, Jeff discussed disruption in manufacturing and the potential for Autodesk to move upmarket over time. Over what time frame do you expect to become more competitive with the 3 enterprise CAD companies? And would this be driven by Fusion 360 and Inventor, or would you need an entirely new product to attract more complex projects?

I can take that. Thanks, Matt. In the near term, we see a very large opportunity in the mid-market in manufacturing. So Fusion is going to stay focused there. But even in the mid-market, we continue to add capabilities to better serve larger customers and new industry segments. Now in terms of sequence, we will steadily move up market and we'll compete with players who straddle the line between mid-market and enterprise. And to the second half of your question, will we do this with Fusion 360 and Inventor or something new, we're going to compete with the Fusion, the industry cloud. We do not expect to introduce a new product as we move upmarket.

Great. So let's go to the next one. So also from Matt from Mizuho. Could you give us an idea of what kind of scale Autodesk Construction Cloud has internationally, relative to the domestic side of the business? And it seems that your existing channel partners are doing a good job of supporting growth in construction. But to what extent do you anticipate the need to add more specialized construction industry partners or build out your own direct GTM capabilities, particularly in major international markets?

Yes, great. So we -- obviously, we're very pleased with the global growth that we've seen of Autodesk Construction Cloud, but certainly, we've seen explosive growth internationally, both in APAC and in Europe and EMEA. And the channel partners have really played a key role in that growth. I talked about some of that -- some of their contribution in the presentation. But we're really pleased with the role and the contribution our channel partners have made. They've come up to speed quickly. They've invested. They've got the expertise. They've got the folks on their team that have the construction expertise that can really help our customers adopt and get up to speed quickly on our tools, and we're seeing that. And we absolutely expect that to continue. We expect to continue to bring on more partners that are specialized in construction because it's proving to be a great way to scale the business and more importantly, a great way to get the global construction industry embracing digital technology. So we absolutely expect that to continue.

By the way, I want to add that there isn't a single conversation I have with our partner principles where construction is not one of the first topics that comes up. The amount of enthusiasm, excitement and the opportunity for growth in this particular part of the market is very high in a global perspective. So it's great that we have more and more of our partners investing, as Jim said, adding capabilities to be able to get to more customers. So it's an opportunity for us to definitely scale globally.

Absolutely. So Andrew, can you talk about how AI and machine learning will impact Autodesk and our customers' workflows?

Yes. As I've said many times, one of the things I love about the whole ChatGPT discussion and all little spin-offs that are rapidly going to market right now around it is that it allows us to have a conversation Autodesk has been trying to have for quite some time about what the role of AI is going to be in the design world. This whole notion of co-creation of initial drafts, of preliminary ideas, of evolving ideas in collaboration with machine-assisted concepts and machine-assisted tools, this is the future, and it's going to change the way all of our tools work. That's why the industry clouds are so important because they're driven fundamentally on the basis of connected data, which allows you to train connected processes, which allows you to create the copilot that works with people on the design processes. Now I want to also be super clear, we're already doing a lot of stuff with machine learning in our product. You heard about Construction IQ and some of the work that, that does in a very narrow vertical place around RFI impacts and gleaning insights from RFI patterns. You heard about some of the things we're doing with Forma. You heard about some of the things we're doing with product insights in terms of helping users just use the existing product set better. So there are vertical applications of machine learning and AI in our portfolio already. What you haven't seen us do yet is train on very large models in hybrid ways that allow us to create this dynamic first draft kind of copilot. That's the future, that's coming, that's why we've been leaning into the cloud as long as we have. That's why the clouds are so important, and that's why connected data on a trusted platform is so important because that's how you get to the kind of scale that allows you to train the kind of models that change the way people work.

So let's move on to BIM from -- a question from Clark of Piper Sandler. With BIM penetration doubling, building information modeling, doubling in the last 3 years, did Autodesk gain share over that time period? What are the largest subsector opportunities for Autodesk penetration in BIM?

We should hand that straight to Amy.

Great. So one way we normally think about this is, in most of the world, BIM is pretty much synonymous with Revit. So anytime we see BIM growing at an accelerated pace, we tend to see Revit growing in the same way. As far as subsegments, buildings, obviously, remain quite strong. But transportation, you saw in the Iowa success story, they are really looking at BIM and how they can deploy BIM across the DoTs, and water also represents another aspect for us to grow in BIM.

And then another one probably for you, Amy, Nay at Berenberg asking, could you help me bridge the 30 billion design TAM in AEC to the 20 billion communicated during the previous Investor Day?

Sure. So facility data management is the primary difference between those two numbers. And we believe that that's a very attractive area for Autodesk in the owner-operated space?

So a question from -- and forgive me if I mispronounce this, Brandon Ladoff. Can you provide a summary of how your efforts to convert noncompliant users have fared relative to your expectations a few years ago? What is the risk to being more aggressive in converting noncompliant users? For example, is not using Autodesk software a viable option for them?

Well, as the person that drives both brand and go-to market, I'm going to hand that one over to Steve.

I'm happy to take it. And we've been on a journey together with all of you in our -- focused on converting noncompliant users to genuine software. I'll say that we are meeting our expectations, based upon all of the activities, the strategies and the tactics that we've put in place over the years, to convert noncompliant users to genuine software. If you think about the process and what I shared earlier, we've been hardening our systems, and we're getting very good results from that. We're communicating in product to more people, more noncompliant users than ever before, in more countries now than ever before. But I do want to be really clear about something. I mentioned that the targetable noncompliant users are the approximately 2 million users that are within our paying customer base. This is where brand, as Andrew was talking about, really matters, and we are building long-term strategic relationships with our customers. And if we came in with a heavy hand, it's going to be hard for a company to view us, as Autodesk, as a strategic partner. So we're working in a collaboratively with them to be able to help them identify where that noncompliant usage is and then basically subscribe or use Flex to get to a compliant environment, where they're meeting their requirements and meeting our requirements. So I feel really good about the process that we've been undergoing for the years. We are meeting our expectations. Brand is really important. And for Autodesk to be recognized as a company, that can help our customers make anything and partner with them successfully. We need to do this in a way that is not aggressive and doesn't just go into a legal fashion as other companies have tried to do in other parts of the business.

Great. So let's move to another question from Saket of Barclays. Can you please talk about timeline for end of lifing some manufacturing point products? And which products will be most likely to end of life? That's probably one for Jeff.

Yes. I can take that. This is going to be an effort over multiple years, Saket. But rather than focus on specific products and timelines, let me talk about the guiding principles around unification. First, unification, it's better for customers. That's how we get integrated design to make. That's how we get customer -- seamless customer data. And we avoid switching between applications. So principle number one, it's good for customers. Principle number two, we won't end of life any product until we have a better destination for those customers. And that destination is going to be -- include some capabilities in the core Fusion cloud but also in our extensions. And then third, not all products are created equal. So we moved quickly -- relatively quickly with some of our smaller products, EAGLE, FeatureCAM, PowerMill. And we're down a path already in terms of that integration. But some larger products like Inventor, where there's a substantial user base, those will follow their own path and their own timeline. But the most important thing to us is we're going to keep customers' needs first as we do this unification.

And remember, we always ship these products together. Every Inventor customer is a Fusion customer. And they are able to get access to the great things about Fusion, while we take care of the Inventor customers with what the specific needs they have.

So another question from Matt at Mizuho. You highlighted project financials and payments as 1 of 5 key strategic areas. Could you talk more about that opportunity, this is in Construction? And how you expect to differentiate there versus your competitors? That's probably one for Jim.

Yes, absolutely. And you're right, Matt. Project financials and payments are absolutely a strategic area of investment for us. Last year, of course, we made the investment in Payapps, a strategic partner of ours, but we're also doing a lot of -- and have been doing a lot of organic development, whether it be connections to ERP systems or whether it be our cost management tool, which is part of Autodesk. So we continue to invest in those areas because they're critically important to our customers. Talk to any subcontractor, and what they'd talk about is the challenges they have in making sure they're getting paid on time. Talk to general contractors. What they talk about are the challenges and the impacts of not properly tracking cost throughout the project. So that's exactly where we're investing. And the way we differentiate relative to our competitors is by tightly integrating all of those capabilities back to our pre-Construction offering, right, to make sure that we're understanding the cost and the impact of changes late in the game so that we've tracked it -- that we get it back, we understand the impact of that and the team can react and respond accordingly. That's really how we differentiate the tight integrations back into our pre-Con offering.

Great stuff. So we've got a question from Steve at SMBC. Can you unpack for us the capability differences between BIM 360 and Build? This is obviously for you, Jim, as well. And what are the challenges that enablers for customers to transition?

Yes. That's a great question, Steve. So I think of Build really as a superset of BIM 360 and PlanGrid. And so Build has all of these capabilities that those tools have but also have more. I just talked a moment ago about our cost management module and capabilities. That is part of Build, not part of those other tools. So there are some pretty key differences in terms of capabilities between BIM 360 and Build. And we continue to work on those capabilities. We want to make sure that the workflows that our customers are using in BIM 360 or PlanGrid today can, in fact, be replicated and improved upon in Autodesk Build, and that's the journey we continue to be on. In terms of the second part of the question, challenges, listen, the biggest challenge is the fact that it's unlikely that any general contractor or subcontractor is going to change project management tools midstream. So the challenge and the opportunity really is for us to get in with those customers as a planning of those next projects, to make sure that we're there with them, partnering with them as they're winding up and getting moving and adopting the new tools, Autodesk Build, for example. So the challenge and the opportunity is to make sure we're getting in at the right time before they start that next project because we believe value and capabilities that Autodesk Build offers will drive greater outcomes for our customers.

Great. Thanks, Jim. So a question from Bhavin at Deutsche Bank. Can you elaborate on the acquisition of Unifi yesterday? And how that fits into the strategy you outlined today?

Yes. So Unifi is all about Revit data. And I think I'm going to pass this over to Amy to talk about how Unifi fits deeper into our data strategy regard to Revit.

Absolutely. So we're very excited about this acquisition because it's solves a core problem for Revit customers today in managing their content, but it also will accelerate our ability to deliver on connected data. So Andrew and Raji both talked about the importance of connected data across the end-to-end design and manufacturing process and make process. But also, it will help us connect the building product manufacturers that are on the manufacturing side to the Revit and Civil customers who need to use that data. So if you think about all the building products that are designed in Inventor, this will give us, over time, better access to those tools in Revit as well as all the things like doors and fixtures will now be a lot easier for our Revit customers to manage very soon.

Great. So moving on to Ken at Oppenheimer. How much of Autodesk revenue is coming from government sector today? And where could this trend post FedRAMP? With this effort -- will this effort require new sales investment?

So I won't tell you exactly how much revenue comes from government. Let me tell you, there's two that revenue from government projects comes to Autodesk. One, by selling directly to the government. We sell a lot of our desktop products to the government, one. The other is by the government projects that come to our customers. Both of these are go-to-market vehicles for accessing government spending and government. . The thing about FedRAMP is it's going to enable us to sell our portfolio of cloud products to the government as well. Now we've had unique ways of going to market with the government for a while. And just to talk about where we're at and where we're going, I'm just going to hand it over to Steve a little bit to go through that.

Yes. So I talked about how we're focusing on large customers and small customers. The federal opportunities or the government opportunities are large opportunities for us, as Andrew mentioned. So we've been applying an account-based sales and marketing approach for government entities. And we've identified specific government entities around the world that we believe have great opportunities for us, and we assign our own direct teams to work and engage with them to help them meet their business needs as well. So expect us to continue to invest in that, expect us to continue that account-based sales and marketing approach. But also, recognize, as Andrew said, a lot of government business is actually being done through our commercial customers. And many of those commercial customers are also in our account-based sales and marketing program. So having FedRAMP as a capability for us for our cloud offerings not only enables us to go and sell directly to those governments, but it's enabling our customers, some of them are biggest customers, to go after government contracts using our cloud-based offerings that our FedRAMP approved, and they're asking us for it. So the government has been asking us for that, and our customers have been asking us for so that they can service the needs of governments around the world. So those are the two ways we go to market. Know that we are on top of this, we see the big opportunity, and we're investing to make sure that we get our fair share and more.

Great stuff. Okay, we have another multipart question from Elizabeth at Morgan Stanley. Take a big breath. How often are the capabilities in sustainability the deciding factor in a deal win? Are customers coming to Autodesk for the broad portfolio and sustainability is an additional benefit? Or are you winning deals versus competitors for it? And then part two, what is the best way for investors to track increasing demand for projects with sustainability requirements?

It's actually part 3, so let me answer this question by first answering part 2. Here's what's driving this. More and more the owners, the customers in some of these projects are becoming a driver of need in our customers. What's happening is governments, building owners, other people, they're coming with sustainability and carbon reduction goals for the projects that they're putting out to bid. And that is putting real pressure on a lot of our customers to show that they are making progress on these deliverables. So that's the big driver. So what you want to pay attention to in terms of the pressure here is how many projects from either commercial owners, by the way, commercial owners are also subject to government regulations and government pressure, and how much is coming from government owners to actually reduce carbon embedded and lifetime inside a project. And what you'll see is the trends are increasing, especially in Europe, but even in the U.S. as well, all right? So that's the big driver here. Now, are these capabilities deciding factors? Yes, they absolutely can be deciding factors. If you don't have certain capabilities that make it quicker and easier for them to assess embedded carbon and lifetime carbon, they're going to go with another solution. So we intend to stay in the leadership position with both embedded carbon and lifetime carbon in what our customers build and design, all right?

Yes. Andrew, I was actually -- in Elizabeth's second question, I was going to actually say, both are true. We are winning business because of our sustainability capabilities, but we also are winning business because of the breadth of our portfolio that we cover multiple industries, and we actually can drive convergence unlike anybody else. And they can also deliver sustainability outcomes. So actually, it's -- Elizabeth for your middle question, I'd say, both are playing a role in driving growth for us.

Can I pile on to that one?

Yes.

The other thing -- we talk a lot about carbon, but when we work with customers, we talk about multiple sustainability vectors. I think we talked about waste a lot, Jim and I and -- between design and construction. We talk about water. There's huge sustainable impacts and outcomes from water. And then, of course, we also talk about carbon. But the fact that this is embedded across the broad portfolio and in multiple industries and phases, really makes us kind of a powerhouse in helping customers solve these problems.

By the way, Amy makes an incredibly important point, and I think it's worth reemphasizing is one of the biggest things we do to help our customers drive sustainability is modernize and digitize their processes because the ability to track things from design all the way to make or construction or manufacture and the ability then to make changes before any of these things get locked in is something that a large swath of our customers are not sophisticated at. You get them sophisticated at that. They are already moving well up the curve of being much more sustainable in all their processes.

Fantastic. So let's go on to Joseph, I guess, at Tuckfield. Reshoring is currently a popular buzzword, an investment theme. As order size the opportunity, is it a meaningful business driver?

Yes. So we haven't explicitly sized the opportunity, but here's what I'll say, this is one of these opportunities that Autodesk has been looking at for quite a while. We have been anticipating not only the diversification of supply chains, but the rise of smaller local manufacturers. This has been something that we felt technologies like 3D printing, highly distributed supply chain management solutions, the cloud we're going to enable. Now what you're seeing is there's also other types of tensions that are leading people to think really carefully about diversifying the supply chain. So this is something we've been preparing for very deliberately over a long period of time. Fusion is designed very specifically for people who are trying to design and make things at smaller scale and trying to diversify their supply chain. So it's meant for the people at the end of the supply chain that are manufacturing things. And it's meant for the people that are trying to manage diversified supply chains, where they may have had a single supply line previously. And it's designed specifically for growth in the mid-market, which is one of the areas where we think we're going to see a lot of growth in some of this capability in terms of bringing things closer because a lot of mid-market manufacturers, guess what, they had a single supply chain that went east, and they're looking to do things very differently, and we've deliberately built tools to support and enable that. So we do think it's going to be a growth driver over a period of time, but we don't have it explicitly sized.

If I could add on to that, too, it's an opportunity for us because any time someone is looking at making a technology decision in manufacturing, they're assessing what are the solutions that are out there. And we like our value proposition. We like the integration of design and make. We like our flexible, disruptive pricing and business models. And we think we fare well in that. Secondly, when you nearshore or reshore, you're often building a new factory, and it allows the full breadth of the Autodesk portfolio, our strength in AEC and manufacturing to come together. So that's another part of that opportunity.

So next question from Jason at KeyBanc. Nice to see the initiatives in road and rail and water, but electrification is another huge focus on infrastructure. What is Autodesk doing here to address the opportunity in grid management, grid upgrades, renewable energy?

Yes. So first off, our tools are already widely used in electrification and in grid management. So they're already out there being used widely. In our view, the opportunities around road, rail and water require a lot more specialized focus from us and are highly synergistic with a lot of the tool sets we have. So look for us to focus in those areas, moving forward. But remember, our tools are already very broadly used in the electrification and all the activities going around, specifically in electrification.

So a question on price versus volume on average over time. So from Tyler at Citi. Within the 7% to 10% growth you're expecting in the core product subscription business, how are you weighing the importance of price increases versus expansions or new product creation? That's probably one for...

So we -- when we think about the 7% to 10% growth on the top line for the core product subscription business, generally, we're looking at it being roughly 50-50 weighted across volume versus price. You'll see us adjust that, depending on what we're seeing in the overall market. So as an example, when the COVID-19 pandemic hit, we were more volume-focused rather than price-focused because we were sensitive to price increases against that kind of macroeconomic backdrop. But generally speaking, as we think about modeling the long term of our business, we're looking at roughly 50-50 split.

Fantastic. And last question, I think, now is from Bhavin at Deutsche Bank. As you move to industry clouds and away from monolithic files, how does the go-to-market strategy have to change? Product-led growth seems to -- like a focal point, if that is accurate, how do you need to reorient the sales strategy? Will the move to more product-led growth impact the model at all?

Yes. So let me answer a little bit, and then I'm going to have Steve finish up a little bit on the that, especially on the last piece of your question. So first off, the move to industry clouds and distributed granular data in the cloud, our mainline go-to-market model completely handles that in terms of taking those things to our customers. We're very good at from [ touring ] our customers from one usage pattern to another usage pattern. We've done it over and over again from 2D, from 2D to 3D, 3D to parametrics to now connect to design and make. We are very good at moving the customers, and our ecosystem is good at doing that. What the industry clouds enable us to do is reach a broader set of customers with a lot more sophisticated tools and also reach some of our competitors' customers with a lot more sophisticated set and -- of modernized tools. That's where product-led growth comes in. It comes into reaching those smaller customers with some of our newer technologies, basically chasing that ever-increasing long tail and reaching our competitors' customers and helping them get into the community and get engaged with us. In terms of how we're managing the balance with our other go-to-market models, I'll let Steve talk a little bit about that.

Yes. Thanks, Andrew. So as Andrew said, we are well positioned to drive expansion of our industry clouds and moving from selling products to selling capabilities, based upon Autodesk platform services, with our named accounts and for all of our account-based sales in marketing programs. And as Andrew said, we've done this over and over again. It's an expansion play. We're excited about it. And it's a journey, as you've heard from my colleagues, doesn't happen overnight as we roll out the capabilities, but we're well on our way, and we're prepared to take that forward. I did talk about those reach customers, those small customers, those large number of customers, where -- they're either small or we're acquiring lots of them. This is where we see a great opportunity, as Andrew said, for things like product-led growth. And product-led growth that's just going to be piloting this year. We've had some successes, as I mentioned with Fusion. Jeff talked about that. But I'm excited to see how we do with things like Forma and AutoCAD Web this year. These are things that are all part of self-service. And this is part of why self-service is so critical to our go-to-market approach. We need to be able to connect across the entire customer life cycle in an ongoing fashion with hundreds and hundreds of thousands of smaller customers that make up a large portion of our business and a growing portion of our business. This is where you're going to see us taking advantage of the capabilities within our industry clouds to get the more users, to get the more customers and to position ourselves to drive growth in FY '24 and beyond.

Fantastic. So that's a wrap. Thank you for joining us. I hope you found the day useful. All of the presentations are on autodesk.com/investors. If you have further questions, you can contact me directly at [email protected] or through the website. Thanks very much.