Autodesk, Inc. (NASDAQ:ADSK) Q3 2023 Earnings Call Transcript

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Debbie Clifford: I would just add that our net revenue retention rate was comfortably within the target range of 100% to 110% and in the short-term, our expectation is that it will stay in that range.

Keith Weiss: Great. And then just following up on kind of the comments about the strong balance sheet and willing to invest, wanted to see if you are seeing any change in behavior in the competitive landscape, especially from some companies that may not have as strong a balance sheet? So any changes you are seeing in the behavior overall? Thank you.

Andrew Anagnost: So with regards to €“ I just want to give a clarification on that question. With regards to the competitive environment in what way in terms of how that €“ how does it €“ just give me a clarification on your question a little bit there. I didn’t quite understand.

Keith Weiss: Yes, sure. So you guys have a strong balance sheet kind of willing to invest in the current environment, just even though there maybe some macro headwinds. But you likely have some peers out there that may not be as well funded or has strong balance sheets. So curious if you are just seeing any sort of changes in behavior across the competitive landscape?

Andrew Anagnost: Yes, okay. Okay, good. I just wanted to make sure that I was in it. So look, we are in better shape than some of our competitors that are not profitable. In certain situations, people are going to be chasing, I think long-term things that kind of boost revenue or pull revenue forward. They will be doing customer unfriendly things to try to pull things forward. We are not in that position right now, especially in certain types of sectors. We are maintaining customer-friendly practices. We are focusing on the long-term. We’re investing in the long-term. And that will actually provide competitive advantage as we move out of the slowdown. And it’s always great to be in a position to invest during a slowdown and to not have to pull short-term levers to try to achieve profitability, maintain profitability or get in the way of things.

We will probably have more dry powder for inorganic activity than some of our competitors as we head through this. So yes, strong balance sheet actually helps us invest ahead of the curve while we go through these things. So I am pretty confident that we are ahead of the game in a lot of places.

Operator: Thank you. That is all the time that we do have for question. So I’d like to turn the call back over to Simon Mays-Smith for any closing remarks.

Simon Mays-Smith: Thanks everyone for joining us. I hope the call was useful. For those of you that celebrated happy Thanksgiving and happy holidays and we’ll look forward to catching up with you again at conferences and in the New Year at our fourth quarter earnings. Thanks very much.

Operator: Thank you. Ladies and gentlemen, this does conclude today’s conference. Thank you all for participating. You may now disconnect. Have a great day.

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