Andrew Anagnost
President and Chief Executive Officer and Board Director at Autodesk
Thank you, Debbie. Now let me turn to our strategic growth initiatives. Sustained and purposeful innovation to enable digital transformation in the industries we serve is changing our relationships with our customers from software vendor to strategic partner. And that is enabling us to create more value through end-to-end, cloud-based solutions that connect data and workflows, and business model evolution. By helping our customers grow, we will grow, too.
In AEC, digitization trends are accelerating the need to connect all phases of design and construction with end-to-end, cloud-based solutions. A great example this quarter was with an Asia Pacific semi-conductor manufacturer which is rapidly expanding its manufacturing capacity around the world and looking for help to drive more efficient collaboration across project stakeholders as well as shorter design and delivery cycles. It invested in AEC Collections to accomplish this goal and is now leveraging the power of BIM and our digital AEC workflows to achieve its expansion plans. This is a prime example of how Autodesk is positioned to help our customers as industries converge with this customer being a long-time user of our manufacturing products and now expanding its footprint with us in AEC.
In construction, we believe the Autodesk Construction Cloud is the best end-to-end offering across all phases of the construction lifecycle. Starting with our industry-leading preconstruction offerings, we help our customers seamlessly convert data into a construction plan, allowing our customers to condition and coordinate models early to aid in clash detection, easily quantify the materials required for future construction, and leverage our BuildingConnected community to power the bidding process. As we turn to the field, Autodesk Build provides a single, integrated solution for project management, field collaboration, quality, safety, and cost control, which is easy to deploy, adopt and use.
We just launched it in February, but we've already seen Autodesk Build in use on more than 11,000 customer projects around the world. By connecting project information and teams in one common data environment, it enables efficient collaboration while providing predictive analytics and insights that increase quality and safety while decreasing risk. As I mentioned earlier, we've transitioned to being a strategic partner to our customers and in construction, that means evolving our business model.
We provide customers more choice in how they buy. We offer both user and account-based pricing, which gives our customers the flexibility to decide how they want to engage with us on their digital journey. With our account-based pricing model, we're seeing significant benefits from driving as many users as possible to our construction platform. Once Autodesk Build has been deployed on a project, we've made it friction-less for anyone involved on the project to get access to our platform within minutes. This pattern is not unlike the evolution of Fusion 360 over the last few years, the more users we see on our platform, the more we learn, the better we make our products, and the more value we add to our customers.
This quarter, Messer Construction, a top ENR 400 general contractor in the United States, selected Autodesk Build for project management over competitive offerings, Pype for submittal management and BIM Collaborate for native clash detection. As Andy Burg from Messer Construction said, "Autodesk Build's comprehensive unified platform is industry leading and, by seamlessly connecting design with construction to increase our efficiency, establishes a strong partnership foundation and further enables us to build better lives for our customers, communities and each other."
Autodesk Build's momentum is growing internationally, too. Stamhuis is a leading retail shop construction and renovation company in the Netherlands which had already used AEC Collections and Generative Design to optimize client retail space, reduce design and construction errors by 15%, and improve its ROI by 10%. This quarter, it invested in Autodesk Build to further increase efficiency, reduce waste, and add value for its clients by converging workflows from conceptual design, to engineering and fabrication while seamlessly collaborating with its clients. Our relationship with Stamhuis demonstrates the value that digital construction processes can bring to customers around the world. With our significant international experience and resources, we're well positioned to capitalize on this large growth opportunity.
And we continue to invest to connect and converge adjacent industries to create value and help our customers achieve greater efficiency. During the quarter, Innovyze's Info360 cloud platform launched a beta version of Info360 Asset, a cloud-based tool for the water industry's condition and performance monitoring and risk management processes. We also launched Autodesk Tandem, our digital twin offering focused on harnessing the data from the design and construction process to create a repeatable and dynamic process with digital handover being the natural output of the project lifecycle.
Turning to manufacturing, we continued to see strong momentum with our manufacturing portfolio this quarter, and we also saw the inclusion of Upchain in its first enterprise business agreement, or EBAs, with one of our larger enterprise accounts. The convergence of Design and Make is accelerating, and we are seeing larger companies expand on our platform. For example, after using Fusion 360 and Moldflow to develop accurate digital manufacturing twins for injection molded parts, which is typically a very iterative, time-consuming, and expensive process, one of the largest American multinational medical device and pharmaceutical companies renewed and expanded its EBA with us this quarter. They were able to significantly reduce the time and rework costs because they could anticipate, predict, and correct manufacturing issues before moving into production.
We continue to see subscription growth for Fusion 360, with paying subscriptions now at 165,000, and the Fusion 360 extensions are helping to increase our average revenue per subscriber and capture more potential opportunity. During the quarter, a US based global leader in design, engineering and manufacturing of woven wire mesh products transitioned to Fusion 360 as their main design tool and invested in our manage extension. The combination of Fusion 360 and manage extensions has largely automated their design change workflows and has brought a new level of organization and efficiency from product design all the way through delivery.
Our presence in education continues to expand to address the critical shortage in skilled labor. For example, a growing number of large German companies are replacing competitive solutions and are training their apprentices on Fusion 360 to prepare them for the future of work. In the second quarter, Energie Baden Wuerttemberg AG, ENBW, one of the biggest utility companies in Germany with 25,000 employees, adopted Fusion 360 to train its 600 apprentices. ENBW and its apprentices will benefit from the Fusion 360 cloud collaboration platform serving all their CAD, CAM, and CAE needs while they are either onsite or remote. Education remains an important market for us and we continue to broaden our reach, with more than 43 million Tinkercad and Fusion 360 education users.
We continue to make progress transitioning all of our users to named users, giving customers more visibility into their usage data and allowing us to better serve our paying customers while also making it harder for non-compliant users to access our software. The Level Group is a full-cycle developer which specializes in business-class complexes. During the quarter, it increased its investment with Autodesk by consolidating all of its single and multi user subscriptions and permanent licenses to AEC Collections with our Premium Plan and Autodesk Docs to enable more efficient collaboration and license management. And with the help of 24/7 technical support and single sign-on capability, Level Group expects reduced design costs in the future.
As our existing paying customers navigate the complexity of digital transitions, we can help them manage that complexity, improve efficiency and sustainability, and remain license compliant. For example, one of the leading construction, civil, industrial and infrastructure services contractors in Vietnam invested in AEC Collections and Autodesk Build to balance project safety, efficiency and quality while also reducing environmental impact and waste. Our license compliance team helped them identify licensing gaps and ensure installation of compliant software. We estimate that there are about 2 million non-compliant users within our paying customer base.
During the quarter, we closed 11 deals over $500,000 with our license compliance initiatives, six of which were over $1 million. At the end of September, we will launch a new pay-as-you-go consumption model, called Flex, that matches a customer's cost with their usage. Flex is an important new way to purchase from us as we evolve our business models to offer more choice and flexibility. It serves the long tail of customers who want an option for occasional users that do not use subscriptions every day. It also lowers the barrier to entry for existing and new users to explore new products with minimal risk and upfront costs.
Now back to where I started. Sustained and purposeful innovation to digitally transform the industries we serve is also transforming our relationship with our customers, from software vendor to strategic partner and enabling us to create more value for them through end-to-end, cloud-based solutions, business model evolution and connected data and workflows. By helping our customers grow, we will grow, too. The pandemic has accelerated these trends, and climate change is increasing the urgency. We will continue to invest to rise to the challenges ahead and seize the opportunities they present. In the meantime, we remain on track to achieve our fiscal '23 goals.
Please join us at our virtual Investor Day next week where we will have more time to share our strategic initiatives with you. Operator, we would now like to open the call up for questions.
