Several factors contributed to that, including robust growth in new product subscriptions, rapidly expanding digital sales and increasing subscription renewal rates. As Andrew said, our third quarter results were strong.
#GROSS BEAT HALF STEP UPDATE#
I'll then come back to provide an update on our strategic growth initiatives.ĭebbie Clifford - Chief Financial Officer Now let me turn the call over to Debbie to take you through the details of our quarterly financial performance and guidance for the year.
In the third quarter, we began to align our debt holders by issuing our first sustainability bond linked to our sustainability goals. Many of our largest equity holders already aligned to our sustainability goals. This organizing principle affects not just how we deploy capital, for example, through our investments to develop sustainable tools and our recent acquisition of Innovyze, but also how we source capital.
#GROSS BEAT HALF STEP SOFTWARE#
This cannot be achieved efficiently or effectively without end-to-end software like ours to drive the process. Sustainability needs to be designed, made and, in many cases, retrofitted in construction and manufacturing. The recent report from the Intergovernmental Panel on Climate Change and the United Nations Climate Change COP26 meeting in Glasgow, both underscore the urgency of reducing carbon in earth's atmosphere and the role that everyone, including corporations needs to play. Notable milestones during the quarter included the launch of our Flex consumption model and our plans to combine technologies, connect processes, automate workflows, and unlock valuable insights for customers through our Forge platform. Our end-to-end solutions, business model flexibility and platform position us well competitively and enable more customers to enter and remain in our ecosystem.Īs you heard at our recent Investor Day at Autodesk University, we are rapidly innovating and optimizing our business to increase and realize the opportunity ahead. We're encouraged that embracing digital transformation to drive efficiency and sustainability remains a priority for our customers. Our conversation with customers and channel partners reinforces our view. While demand is robust, we believe supply chain disruption and resulting inflationary pressures, a global labor shortage, making it harder for our customers to staff new projects and the ebb and flow of COVID are contributing to the deceleration, as well as documented country-specific disruption to AEC in China. Relative to the first and second quarters, the rate of improvement decelerated during the third quarter more than we expected. We also grew RPO and billings 18% and 16%, respectively, despite a tougher compare versus last year. Our third quarter results were strong driven by one of our best ever quarters for new subscriptions, record subscription renewal rates, a net revenue retention rate toward the high end of our range and a solid competitive performance. Thank you, Simon, and welcome, everyone, to the call. All non-GAAP numbers referenced in today's call are reconciled in our press release or Excel financials and other supplemental materials available on our investor relations website.Īnd now I will turn the call over to Andrew.Īndrew Anagnost - Chief Executive Officer And unless otherwise noted, each such reference represents a year-on-year comparison. During the call, we will quote a number of numeric or growth changes as we discuss our financial performance. If this call is replayed or reviewed after today, the information presented during the call may not contain current or accurate information.Īutodesk disclaims any obligation to update or revise any forward-looking statements. Forward-looking statements made during the call are being made as of today. Please refer to our SEC filings, including our most recent Form 10-K for important risks and other factors, including developments in the COVID-19 pandemic and the resulting impact on our business and operations that may cause our actual results to differ from those in our forward-looking statements. Actual events or results could differ materially.