Through that process, we’ve learned a lot. We’ve gained a lot of knowledge. We’ve addressed a lot of issues both systems-wise and process-wise. And we are now in a position with Flex to start growing, and expanding that model at greater and greater volume. And that’s exactly what’s happening with Flex. The volume of Flex is increasing, increasing, and we’re doing it reliably, repeatedly and in a pretty positive way. Where we go from here depends solely on how we watch these things evolve and what the benefits of this transaction model for us. And all options are open to us in the future, but that’s where we are right now. We’ve perfected what we’ve done on the Flex.
Jay Vleeschhouwer: Okay. Thank you.
Operator: Thank you. Our next question comes from the line of Adam Borg of Stifel.
Adam Borg: Awesome. And thanks so much for taking the questions. Maybe just for Andrew on the infrastructure opportunity. I know you’ve been calling out increasing traction with State Department of Transportation, and you even referenced some grants in the quarter in the script. So maybe just talk a little bit more about how you think about the infrastructure opportunity overall? And really what separates all of that from competitors in going after it?
Andrew Anagnost: Yes. So look, at a high level, one of the things I’m really excited about the thing with a really long name. The advanced digital construction management system program that the U.S. government rolled out, that is the program related to the money that’s designed to help department of transportation look at their infrastructure, look at their processes, and start modernizing their digital processes around design and construction of infrastructure. That’s an important step in getting a lot of these Department of Transportations to really start thinking about how they get ready to spend more money on infrastructure, and do it better and address the serious capacity challenges we have around materials, manpower, and dollars with regards to what we have to do.
So pretty excited about, that because that’s an open door to having new conversations with these departments about how they do things. Our focus has not changed. We are very much focused on water and road and rail, and we continue to innovate and drive improvements in those areas. I think our biggest differentiator is what we bring to market as a modern architecture. We bring to market more cloud-based solutions, more owner-based solutions for managing the infrastructure once you have it, and really just more technology that sits together in different ways. So, we’re looking forward to having that discussion with the Department of Transportation over the next months and coming years. And I think you’re going to start to see real change in some of those organizations.
Adam Borg: That’s really helpful. And maybe just as my follow-up, just on the earlier-than-expected EBA renewal pool in the quarter. So maybe just talk about – just given the softer macro obviously, that our checks have been suggesting, and you talked about no real change sequentially. But just what’s leading to customers to choose to renew early and – maybe just as a quick follow-up to that, as we think about the guidance for the year, any way to quantify the type of expansion opportunity embedded from the EBA? Thanks so much.
Debbie Clifford: I think, Adam, you were coming – in and out a little bit, but I think I got the bulk of what you were saying. So just stop me if I’m missing something. But in terms of the EBA behavior. Really, what we saw was driven by them. Our customers were managing their own budgets and cash flow. And so, their desire to get early billings for frankly, higher usage of their tokens was driven by their own – behavior, which we see as a real positive sign for us in engaging with those enterprise customers. They’re seeing strong usage of our portfolio, and they’re continuing to invest in their relationship with us. And those billings boosted our total billings, revenue, and free cash flow during the quarter. So overall, I think it’s a win-win. There was a second part, I think, to your question.
Adam Borg: Yes. Just curious. And so thanks. I was just curious, any way to quantify kind of the type of expansion opportunity from the EBA renewal pool in the back half of the year as you think about full year guidance?
Debbie Clifford: Not something we can quantify for you, Adam, but I would just reiterate the fact that we do see it as a real positive that for the first two quarters of the year-to-date that we’re seeing strong usage, and that’s already leading to early billings. So a positive from our standpoint overall.
Adam Borg: Awesome. Thanks so much.
Operator: Thank you. Our next question comes from the line of Joe Vruwink of Baird.
Joe Vruwink: Great. Hi, everyone. Maybe I wanted to revisit your AEC exposure. I know you’ve discussed this in the past and just as there’s offsets, so commercial market see pressure, institutional or infrastructure far better. So you have diversification there. I guess when you think about the current business composition, and how the different subsectors are faring, do you think the nature of Autodesk and AEC is any better or worse than would have been the case in past cycles? And I’m asking less about Autodesk just as a subscription model now versus a license model in the past. And more about Autodesk and things like Revit adoption or reliance on the cloud which might create a different dynamic for the business this down cycle versus past down cycles.
Andrew Anagnost: I think one of the things that you said, and I want to reinforce it, is that – we are diversified across all sectors of making things. Everything that gets made, we’re involved in. It’s not just AUC, it’s buildings, it’s bridges, it’s car, it’s electronics. And of course, it’s film and game. So just remember, we’re diversified across all of those segments. What’s different now, and I think it’s important to recognize this. Is that the AEC industry as a whole is chasing productivity and digitization gains, the entire industry, from construction, all the way through to any design in every part of the process in between, engineering and all the things associated with that. So that fundamental change is creating long-term pull for what we’re doing.
And what we’re doing is we’re connecting the design, and make processes across that industry together in the cloud in unique and highly integrated way. So that people can do things faster, more sustainably and with greater – with lower risk and better outcomes. That fundamental shift is very different than what we’ve seen before. And that’s going to – we’re going to be riding that fundamental shift for quite a few years.
