Autodesk has reported revenue of $1.51 billion, an increase of 12 percent, for the second quarter of fiscal 2025.
Autodesk, which unveiled a new transaction model aiming at strengthening relationship with its key customers, said billings rose 13 percent to $1.24 billion. Autodesk confirmed there were challenges from the shift to annual billings for most multiyear contracts and a 2 percent hit from the transition to the new transaction model.
Autodesk has generated sales revenue of $662 million from Americas that includes $543 million from the US alone, $570 million from Europe Middle East and Africa and $273 million from Asia Pacific that includes India and China.
Autodesk has generated sales revenue of $713 million from Architecture, Engineering and Construction (AEC); $389 million from AutoCAD; $296 million from Manufacturing (MFG), and $77 million from Media and Entertainment (M&E).
Autodesk said direct revenue rose 21 percent and represented 40 percent of total revenue, benefiting from strong growth in both EBAs and the Autodesk Store. This means, revenue through channel partners accounted for 60 percent of its sales.
New transaction model
Autodesk says the new transaction model creates a direct relationship between Autodesk and its customers. The new transaction model benefits customers, channel partners and Autodesk. Autodesk believes a direct relationship enables to understand and serve customers better.
Customers will have more personalized and relevant experiences with support and services tailored to their needs. The new model empowers customers to manage their own transactions, allows channel partners to focus on providing value added services.
Autodesk said customers will receive consistent pricing regardless of how they buy. Channel partners will benefit from a predictable financial model.
In the new transaction model, reseller compensation, previously recognized as contra revenue, is recognized as marketing and sales expense. This accounting change mechanically results in higher net revenue and higher operating expenses.
In FY24, about $600 million of developed market reseller compensation was in contra revenue. Over time, this will be recognized in marketing and sales expense, Autodesk said.
Under the old or the buy/sell model, channel partner payments are deducted from gross billings and revenue. In the new transaction model, Autodesk records channel partner payments in sales and marketing expense. Autodesk says there will be an increase in billings, deferred revenue, revenue, and sales and marketing expense in the new model.
