Andrew Anagnost
President and Chief Executive Officer and Board Director at Autodesk
Thank you, Debbie.
Our strategy is to transform the industries we serve with end-to-end, cloud-based solutions that drive efficiency and sustainability for our customers. Our business is scalable and extensible into adjacent verticals from architecture and engineering, through construction and owners, from product engineering, through product data management and product manufacturing. It is also scalable and extensible between verticals, with industrialized construction, and into new workflows, like XR. By accelerating the convergence of workflows within and between the industries we serve, we are also creating broader and deeper partnerships with existing customers and bringing new customers into our ecosystem.
For example, in AEC, AECOM is the world's most trusted infrastructure consulting firm that delivers professional services throughout the project lifecycle, from planning, design and engineering to program and construction management. With growing investment in infrastructure, customers are increasingly seeking both efficiency and sustainability to meet ESG goals such as net-zero carbon, resiliency, quality of life, social impact and safety. This aligns AECOM and its customers closely with Autodesk's values and capabilities. In Q1, AECOM renewed and increased its EBA with Autodesk. The renewal promotes further platform standardization and now extends from design further into build, with the addition of Autodesk Construction Cloud, and from bridges and tunnels to water, with the addition of Innovyze.
Across the globe, our customers are seeking to connect and streamline their workflows. As we enable our partner network to distribute Autodesk Construction Cloud, we serve more of that growing demand.
For example, Bravida, which is based in Sweden, is a leading provider of technical end-to-end consulting, design, installation, and service solutions across the Nordic region focusing on efficiency and sustainability. It is responsible for the installation of fire sprinklers, ventilation, electrics and safety systems in the tunnels of The Stockholm Bypass Project, the largest infrastructure project in Sweden's history. Having adopted Autodesk's AEC Collections, and realizing 50% cost savings and a significant reduction in carbon dioxide using Revit in the design phase of the project, Bravida was looking for a complementary system to seamlessly connect the build phase. Adopting Autodesk Build enables it to connect office and field data and workflows in the cloud, standardize and track projects accurately, and manage procurement and logistics, health and safety, and cost more effectively and efficiently.
With the launch of Autodesk Build, the introduction of an account-based pricing business model, distribution through our channel partners, and giving subcontractors the ability to have their own instance of their data, we are connecting more workflows both within construction and between adjacent workflows in design, preconstruction, and operations and maintenance.
After evaluating various project management solutions for more than a year, Donohoe Construction Company, a top mid-market GC in Washington D.C., chose Autodesk Build to seamlessly connect project, site and cost management workflows. Autodesk's industry leading cost management system, which is integrated into, and included with, Autodesk Build, is anticipated to enable Donohoe to control change order management and reporting much more seamlessly with its project and site management workflows. We're excited to partner with Donohoe to build a sustainable future together.
We're investing in Autodesk Construction Cloud to do even more. For example, we launched Bridge to enable subcontractors to have their own instance of their data, a critical factor in improving their business processes. We're also rapidly integrating ProEst so that estimates can be pushed to the cost module in Autodesk Build enabling it to automatically create a budget.
With strong growth from Autodesk Build and the benefit of recently launched ACC bundles for pre-construction and construction operations, Autodesk Construction Cloud reported its best ever new business growth quarter, with an increasing proportion of that growth coming from EMEA and APAC, and growing contract size and renewal rates.
Turning to manufacturing, we sustained strong momentum in our manufacturing portfolio this quarter as we connected more workflows beyond the design studio, developed more on-ramps to our manufacturing platform, and delivered new powerful tools and functionality through Fusion 360 Extensions.
As we connect and develop new workflows in the cloud and provide more ways for customers to use our products, we have the opportunity to renew engagement with some of our legacy customers. For example, a high-tech manufacturer in Germany which has been using Autodesk's software since 1991, was using Inventor software purchased in 2018. By updating from a perpetual license to a Product Design and Manufacturing Collection subscription in Q1, the team will benefit from significant process and performance improvements, which alleviate mechanical engineering bottlenecks and better serve its high-demand periods. Because of its familiarity with Autodesk, the customer enabled these improvements immediately and leveraged its existing IP without migration. We are happy to have them back on our latest and most secure software.
In automotive, we continue to grow our footprint, beyond the design studio into manufacturing, as automotive OEMs seek to break down work silos and shorten hand-off and design cycles. Enovate Motors, an electric vehicle manufacturer in China, added Product Design and Manufacturing Collections on top of its Alias and VRED subscriptions to achieve a seamless digital workflow across design and manufacturing. Enovate will be able to build higher-quality cars more efficiently by connecting workflows in the cloud that enable more collaboration and better data integrity.
Our Fusion 360 platform approach enables customers to seamlessly connect workflows while also delivering powerful tools and functionality to those that need it through extensions. For example, an educational toy manufacturer based in the U.S. started using Fusion 360 about a year ago and quickly recognized the impact working on the cloud would have on its ability to collaborate across sites between Product Design and Product Engineering. In Q1, it was able to seamlessly activate Manage, Nesting, and Product Design Extensions within the Fusion 360 user interface giving access to even more powerful tools and functionality to those that needed it. For example, the Fusion 360 Manage Extension unlocks additional data management functionality to manage design changes at any stage of production with the click of a button using pre-built workflows.
Fusion 360's commercial subscribers grew steadily, ending the quarter with 198,000 subscribers with demand for our new extensions, including Machining, Generative Design, and Nesting & Fabrication, continuing to grow at an exceptional pace.
Outside of commercial use, our education partnerships are helping students learn the in-demand skills of the future. For example, Government Tool Room & Training Center, or GTTC, is a premier vocational institute in India with 6,000 students across 28 campuses. In Q1, GTTC adopted Fusion 360 in its tool and die making courses because it was easy for students to learn, spanned the entire course from conceptual design through simulation to fabrication and gave students hands-on experience with next-generation workflows such as generative design, 3D printing for additive manufacturing and digital simulation and generation of G-code outputs.
And finally, we continue to bring more users into our ecosystem through business model innovation and license compliance initiatives.
BESIX is a multidisciplinary firm whose contracts in construction, infrastructure and machine works often have a high level of complexity. To support its standardization effort across all projects and regions, The BESIX Group uses BIM Collaborate Pro and Docs to collaborate on Revit projects in a secure common data environment. For additional security and efficiency, it now leverages our Premium Plan and Flex. By better understanding its usage through the enhanced reporting function within our Premium Plan, it can provide access to occasional users through Flex, while realizing the additional security benefit of single sign on across its global employee base.
We continue to work with our customers to maximize their access to current and secure versions of our software. For example, an international research institution in Europe, which has both students and employees, was mistakenly using education subscriptions for commercial use cases. By partnering with their leadership, we ensured the relevant departments had access to the necessary tools by combining subscriptions to our industry collections with Flex tokens. The collaborative approached resulted in a compliance deal of over EUR1 million. During the quarter, we closed eight deals over $500,000 with our license compliance initiatives, two of which were over $1 million.
Let me finish with a story. I recently visited the FUTURES exhibition at the Smithsonian Institution in Washington D.C. I highly recommend visiting if you are in the area this summer before it closes in mid-July. It is the Smithsonian's first building-wide exploration of the future. Autodesk partnered with the Smithsonian to create an interactive experience called Future Communities that brings visitors together to build a sustainable community block using analytics and goal-driven design with Autodesk generative design technology. Guests collaborate both with each other and AI, adjusting the inputs they deem most important. Each guest takes on a different persona with specific goals and input factors, which include social, ecological and economic considerations ranging from availability of green space and low-carbon transportation to the reach of public services and employment opportunities. The evolving community block is displayed in real time, and the technology showcases the types of trade-offs necessary to achieve various outcomes. The exhibit structure was generatively designed to be strong and lightweight, using sustainable materials and modular space-frame components that can be easily assembled and disassembled for minimum construction waste.
The exhibit not only represents Autodesk's vision of the future, that of collaborative and connected workflows and data in the cloud that designs and makes a better world for all, that meets the challenges posed by carbon, water, and waste, and that advances equity and access to the in-demand skills of the future, but in addition, the exhibit represents a very diverse set of visions for how the future may unfold. The one thing they share is an unwavering sense of optimism about what we can all accomplish together. Every day, our goal is to empower innovators with design-and-make technology that turns their visions into reality, helping them to achieve the new possible. I share this story because it gives me great confidence in the future of Autodesk and our vision of a better world designed and made for all.
Operator, we would now like to open the call up for questions.
