The company is transitioning to a new transaction model for its token-based Flex offering and other subscription offerings, with most of its subscription offerings transitioned in Australia, North America, and Western Europe, and plans to transition its indirect business in remaining major markets by the end of fiscal 2025.

Autodesk acquired Aether Media, Inc., PIX business of X2X, LLC, and Payapps Limited in the nine months ended October 31, 2024, to enhance its AI capabilities, production management solutions, and payment management offerings, respectively.

The company's strategy is to deliver a trusted design and make platform that connects people through automation, data, and insights, with a focus on three strategic priorities: building the platform of choice, accelerating adoption of key offerings, and transforming customer experience.

The company expects the change in recognition of sales incentives to indirect channels from contra revenue to operating expenses under the new transaction model to result in a calculated negative impact to operating margin.

The company is focused on building the next generation of technology and services as trusted, shared capabilities, including foundational capabilities and Autodesk AI to add value to customer workloads through augmentation, automation, and analysis.

The Audit Committee's internal investigation regarding free cash flow and non-GAAP operating margin practices is ongoing, and the company is cooperating with the SEC and USAO. Also, a securities class action complaint and a stockholder derivative complaint have been filed related to the investigation.

The company's performance is subject to global economic and political conditions, including economic downturns, geopolitical activities, and trade policies, which could impact customer demand and financial results.

A significant portion of the company's revenue is derived from international operations, exposing it to risks such as currency fluctuations, regulatory changes, and political instability.

The company faces increasing risks of security breaches and incidents, which could compromise the integrity of its systems and data, harm its reputation, and create additional liability.

The software industry has limited barriers to entry, and the company faces competition from both established players and new entrants, which could result in price reductions, reduced revenue and profit margins, and loss of market share.

A substantial portion of the company's net revenue is derived from a limited number of solutions, including AutoCAD-based software, and any factors affecting the sales of these solutions could harm the company's financial results.

The company operates in a rapidly evolving industry, and its ability to adapt to technological changes and customer preferences is crucial for maintaining its competitive position.

Cost of subscription and maintenance revenue increased by 12% to $105 million for the three months ended October 31, 2024, and 7% to $305 million for the nine months ended October 31, 2024, primarily due to cloud hosting costs and employee-related costs driven by higher headcount.

Marketing and sales expenses increased by 20% to $525 million for the three months ended October 31, 2024, and 10% to $1.474 billion for the nine months ended October 31, 2024, primarily due to an increase in employee-related costs and sales commissions.

Research and development expenses increased by 12% to $378 million for the three months ended October 31, 2024, and 7% to $1.092 billion for the nine months ended October 31, 2024, primarily due to employee-related costs and an increase in cloud hosting costs and professional fees.

The company is investing in AI capabilities, including Autodesk AI, to add value to customer workloads through augmentation, automation and analysis.

The company continues to focus on cloud-based solutions, with offerings such as Autodesk Build, Fusion, and Flow Production Tracking, among others.

The company maintains an API-based architecture of its software products to facilitate third-party development of complementary products and industry-specific software solutions.

The company repurchased 1.7 million shares of its common stock for $443 million during the nine months ended October 31, 2024, and the Board of Directors authorized an additional $5 billion share repurchase program in November 2024.

The company has $160 million in direct investments in privately held companies as of October 31, 2024, which are subject to a security-specific restriction limiting sale or transfer during the holding period.

Capitalized costs for cloud-based software hosting arrangements were $310 million as of October 31, 2024, with amortization expense of $15 million for the three months ended October 31, 2024.

Autodesk is committed to advancing a more sustainable, resilient, and inclusive world, focusing on areas such as energy and materials, health and resilience, and work and prosperity.

The Autodesk Foundation supports employees and organizations using design and make solutions to drive positive social and environmental impact and administers a discounted software donation program to nonprofit organizations.

The company's credit agreement includes sustainability-linked targets based on greenhouse gas emissions and the percentage of employees identifying as female working in technical roles.

The company's performance is subject to global economic and political conditions, including economic downturns, geopolitical activities, and trade policies, which could impact customer demand and financial results.

International net revenue represented 64% of total net revenue during both the nine months ended October 31, 2024 and 2023, making the company vulnerable to international market risks.

The company's revenue, earnings, and cash flows are subject to fluctuations due to changes in foreign currency exchange rates, requiring the use of foreign currency contracts to manage exposure.