Autodesk, Inc. (NASDAQ:ADSK) Q3 2023 Earnings Call Transcript

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So nothing that fundamentally changed in the quarter. Look, one of the things €“ another thing that was different about Q3 over Q2 is that we had some currency fluctuations towards the end. And that really is probably the only thing that was different, and those currency fluctuations were responsible for the majority of the small revenue miss.

Saket Kalia: Got it. Very helpful, guys. Thanks a lot for taking my questions here.

Operator: Thank you. Our next question comes from the line of Phil Winslow of Credit Suisse. Our next question comes from the line of Jay Vleeschhouwer of Griffin Securities. Your line is open.

Jay Vleeschhouwer: Thank you. Good evening. Andrew, for you, first, to follow-up on some comments you made regarding your strategy at AU and then allow a follow-up for Debbie. So at AU, you made some comments with regard to the various clouds that you’ve introduced, and you made an important distinction between the AEC cloud and the manufacturing cloud, namely that manufacturing cloud is more mature. It’s been out in the market perhaps longer. So what is your expectation for the maturity or development of the AEC cloud to get it to where you think it needs to be so it’ll be comparably mature or capable, the way the manufacturing cloud is, the way you described it at AU? And then for Debbie as a follow-up since the door was open to an FY €˜24 discussion, apart from everything else you’re doing programmatically, could you talk about some of the things that you’re going to be doing with regard to channel compensation in terms of margin structure, comping on annual versus multiyear and all those various things that you’re planning to implement and if those are going to have any effect on your margins and your cash flow?

Andrew Anagnost: Alright, Jay. So I’ll start with regards to the Forma evolution. It’s going to be kind of similar to what happened with Fusion, all right? And I’ll kind of tell it this way. When we started Fusion, we actually anchored Fusion on two things. We started Fusion upfront in the design process. You probably don’t remember the early days of Fusions, Fusion was actually a conceptual design application. It was highly focused on consumer products design and upfront design processes. And we started to bolting onto it the downstream processes close to the manufacturing, and we started building cloud-based connections between those two and basically filling off the middle between those two bookends of manufacturing and conceptual design.

Think of the evolution of Forma is very similar to that, right? The cloud €“ the Forma cloud is going to start off focusing on the upfront conceptual phases of design, helping architects, planners, developers, all types of people that have to deal with early conceptual decisions about utilization, space utilization, aligning and distributing various aspects of development or an individual building and helping them make some better decisions far upfront in the design. But it’s also going to work to integrate downstream to what we’re doing in Construction Cloud. So Construction Cloud will start getting very close to some of the early bits of what Forma does. And over time, what’s going to happen is Forma and Construction Cloud, Construction Cloud representing the downstream example of manufacturing, all the bits in between are going to be filled out on the same platform, similar to the evolution that we walked through with Fusion.

And that will basically bring the entire process to the cloud over time, but continuously adding value to what our customers are doing today throughout the entire development and evolution of that cloud.

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