Andrew Anagnost
President and Chief Executive Officer at Autodesk
Thank you, Debbie. Let me finish by updating you on our progress in the second quarter. Our strategy is to transform the industries we serve with end-to-end cloud-based solutions that drive efficiency and sustainability for our customers. We continue to see good growth in AEC, fueled by customers consolidating on our solutions to connect and optimize previously siloed workflows through the cloud. And as we talked about in February, digital momentum is also building among asset owners in infrastructure and other areas. This momentum is expected to accelerate with infrastructure investment programs like the U.S. advanced digital construction management system program, which launched during our second quarter.
Cannon Design is a global design practice encompassing strategy, experience, architecture, engineering and social impact. It is driving forward its digital transformation and embracing the cloud to increase operational efficiency, enhanced security, establish a single point of truth and enable more seamless end-to-end collaboration. During the quarter, it expanded its investment with Autodesk, by leveraging Autodesk Docs and a common data environment adopting Forma and is exploring opportunities to integrate Autodesk's XR and asset management capabilities towards design portfolio.
Outside the U.S., our construction platform is benefiting from our strong international presence and established channel partner network. During the quarter, a property developer and transit network operator based in Asia needed to simplify operations across many infrastructure projects with a wide range of contractors and sub-contractors. To manage this complexity, it needed a single source of truth for its project data and a way to streamline workflows on a single platform. In Q2, in leverage support from our local channel partner and standardize on one platform by adding Autodesk Construction Cloud to its existing portfolio of Autodesk AEC design tool to gain visibility into contractors and subcontractors workflows and the potential to unlock breakthrough productivity gain.
Shook Construction, an ENR 400 general contractor based in Ohio, made the decision to standardize on Autodesk Construction Cloud to better streamline their operational workflows. After evaluating many competitive options Shook Construction chose Construction Cloud as the best fit for driving consistent workflows, creating high-impact collaboration with the Construction Partners and eliminating cumbersome manual workflows.
We continue to benefit from our complete end-to-end solutions which encompass design preconstruction and field execution through handover and into operations. Again, these stories have a common theme, managing people, process and data across the lifecycle to increase efficiency and sustainability, while decreasing risk. Over time, we expect the majority of all projects to be managed this way and we remain focused on enabling that transition through digital transformation.
We talked last quarter about the short-term disruption from integrating our construction and worldwide sales teams. I'm pleased to report that things began to settle in the second quarter. We believe that combining the two teams will allow us to expand the scale and reach of our construction business, particularly in our design customer base and our ability to serve our customers across the complete project lifecycle. Encouragingly, Autodesk Construction Cloud MAUs were up over 100% in the quarter.
Moving on to manufacturing. We made excellent progress on our strategic initiatives. Customers continue to invest in their digital transformations and consolidate on our Design and Make platform to grow their business and make it more resilient. For example, a multinational manufacturer will serve the construction industry as both a building product manufacturer and to tools and construction processes has been leveraging the Autodesk portfolio to connect workflows across the AEC and manufacturing industry. It's expanded its commitment to BIM using Revit, Navisworks and Construction Cloud, which has enabled the customer to adopt a collaborative and data-driven approach across design, construction and maintenance services, which minimizes clashes and rework and culminates in more efficient and successful building projects.
In the second quarter, the customer grew its EBA with Autodesk ahead of its Q4 renewal date to accelerate its adoption of BIM and facilitate the design of its products and materials directly within MEP model. Fusion continues to provide an easy on-ramp [Phonetic] into our cloud ecosystem for existing and new customers. In Europe an appliance manufacturer who is already an existing user of our manufacturing collection and AutoCAD mechanical purchased additional seats of Fusion for PCB design. A heating systems division will leverage Fusion's electronic design automation capabilities to quickly and seamlessly connect more of its design to manufacturing workflow to drive greater efficiency.
Fusion continues to grow strongly, ending the quarter with 236,000 subscribers as more customers connect more workflows in the cloud to drive efficiency, sustainability and resilience.
At Investor Day, I talked about leveraging our key growth enablers, including business model evolution, customer experience evolution and convergence between industries to provide more and better choices for our customers. Our Flex consumption model is a good example of this. Flex's consumption pricing means existing and new customers can try new products with less friction and enables Autodesk to better serve infrequent users. Not surprisingly, the lion's share of the business has come from new or existing customers expanding their relationship with Autodesk. During the quarter, we signed $3-more-million [Phonetic] Flex deals.
As Steve said at our Investor Day, we've also introduced a new transaction model for Flex, which will give Autodesk, a more direct relationship with our customers and more closely integrate with our channel partners over time. We will begin testing our new transaction model more broadly in Australia later this year.
And finally, we continue to work with non-compliant users to ensure that they are using the latest and most secure versions of our software. For example, after identifying and alerting a Chinese-based automobile designer about non-compliant usage and despite working through ongoing challenges from the pandemic, the customer eventually committed to three-year VRED and Alias subscriptions. As expected, our initiatives to tighten concurrent usage of named user subscriptions and expand the precision and reach of our in-product messaging drove incremental growth during the quarter.
Now let me finish with the story. According to the National Oceanic service, coral reefs are some of the most diverse and valuable ecosystems on earth. While they take up less than 1% of the ocean floor, their extraordinary biodiversity supports about 25% of all marine life. Healthy coral reefs support fisheries, as well as jobs and businesses through tourism and recreation. They also suffer shorelines against 97% of the energy from waves, storms and floods, hoping to prevent loss of life, property damage and erosion.
It can take 10,000 to 10s of millions of years for our core reef form and just two weeks for it to die. Rising ocean temperatures can cause coral to bleach and die. Half of living coral reefs have died since the 1950s. Without intervention, we're on track to lose 70% to 90% of the remainder by 2015. That is, unless we find a faster way to bring coral reef back from the brink. With support from Autodesk and the Autodesk Foundation, a company called Coral Maker is using our digital tools, artificial intelligence and robotics to deliver coral reef restoration at scale, with cloud collaboration to keep the global team connected across oceans and time zones.
As Dr. Taryn Foster, Coral Maker's Founder says, partnership with Autodesk has empowered us to develop new technology to restore reefs at a rate unimaginable a few years ago. Current restoration projects can deploy about hectare of coal per year. With Coral Maker's technology, it's possible to deploy a 100 hectares per year.
From the oceans, to the earth and sky, augmented design powered by Autodesk will enable our customers to go further and faster to design and make a better world for all. We've been laying the foundation to build enterprise-level AI for years with connected data, teams and workflows in industry clouds, real-time and immersive experiences, shared, extensible and trusted platform services, innovative business model and trusted partnerships. Autodesk remains relentlessly curious with propensity and desire to evolve and innovate. We are building the future with focus purpose and optimism. Operator, we would now like to open the call up for questions.
