Autodesk Conference Call Sumamry

Autodesk ADSK on Friday reported its first quarter earnings. Shares of the company were down 7.27 percent or $3.75 per share to $47.92. In Monday morning's trading, shares are trading up around $51.91. Below are some key takeaways from the Autodesk conference call. Carl Bass, President and Chief Executive Officer: • Building on the momentum we generated last quarter, we're off to a positive start to FY 2015. Strength in our core business led to better-than-expected billings, revenue, operating margin, and EPS. We also made excellent progress on our business model transition by adding over 89,000 subscriptions in the quarter. These results, coupled with the significant increase in backlog and a record deferred revenue, left us pleased with the overall results. • In Q1, we introduced our new 2015 line of Design and Creation suites, as well as updated products across our portfolio. Our 2015 portfolio offers best-in-class desktop products, and powerful cloud services that are being adopted by a growing number of our customers around the world. • Our customers value the diverse functionality they provide and it's worth repeating that suites remain one of the pillars of our growth strategy and support our long-term goal of generating 20% more value from our subscription customers. Our AEC results continue to be driven by the ongoing recovery in the commercial construction market, coupled with the customer excitement for our desktop and cloud-based BIM tools. • Continued adoption of BIM in the building and infrastructure industries, drove growth in our AEC suites and our cloud-based BIM 360 offering. Cloud and mobile are really resonating with our customers, which is an important step in realizing the potential of BIM in construction, as we increase our ability to provide the industry with in-the-field access to real-time design information. • We closed several large AEC transactions in the quarter including a significant win with a transportation agency for one of the largest cities in Europe. This agency has been a competitor stronghold for many years. They will now be implementing an array of our products, including the Infrastructure Design Suite, BIM 360, and PLM 360, for use in some of the highest profile road, rail, and infrastructure projects. Importantly, our AEC solutions will help the agency become compliant with expanding government BIM mandates. • Our manufacturing business continues to perform well on a global basis. We experienced solid demand in both mature and emerging markets, as we continue to expand our business with industrial machinery, consumer products, and automotive customers. We continue to make investments in our portfolio and recently expanded our solution to include new functionality like composite analysis technology for our simulation offering. • We continue to make progress with our 100% cloud-based PLM 360 and we're seeing some great trends there. What's really telling you about the strength of the product is that shortly after their initial purchase, many customers come back to us wanting additional suites. That's the beauty around the ease of deployment with PLM 360 and illustrates how users value the product and its potential in multiple PLM initiatives. • We're also seeing more and more companies that are religious about the cloud. We closed a number of them in Q1 and we think those types of customers will only grow as we go forward. As a large enterprise company, Autodesk has wholeheartedly embraced the cloud. • We closed the Delcam transaction early in Q1. Delcam's business in Q1 was healthy. But after applying the typical acquisition accounting treatments the revenue we recognized was immaterial to the quarter. We are very excited about the early stages of our collaboration, which will help extend Autodesk much deeper into the manufacturing process with the industry-leading technology for CAM. It's great to have the Delcam team onboard as we further broaden our already strong manufacturing solutions.