Autodesk Inc (NASDAQ:ADSK) Q1 2016 Earnings Conference Call Transcript
May 19, 2015 • 05:00 pm ET
Thanks, Dave, and good afternoon, everyone. We're off to a solid start in fiscal 2016 with good progress on our business model transition. We're particularly pleased with the 95,000 subscription additions in the quarter. We continue to experience high growth rates for new model subscriptions such as term based desktop subscriptions, enterprise flexible license offerings and cloud based services. It's worth noting that these new model subscriptions accounted for approximately half of our subscription additions for the quarter.
We achieved our Q1 financial results despite the backdrop of an uneven macro economy and currency headwinds. To put it into numbers, the strong dollar impacted Q1 billings by approximately $31 million and revenue by approximately $22 million and that after our hedging was applied.
It's also worth noting that for the first time in recent memory, we had very limited promotional activity in the quarter. This was intentional as we wanted to digest the activity that had led up to the end of sale for upgrades. We do have more promotional activity going on here in Q2 to spur demand and we implemented a small price adjustment in both euro and yen.
From a geographic perspective, our revenue results in EMEA and the Americas remained strong despite unevenness in certain areas. We also experienced growth in most of APAC, while Japan continued to be impacted by unfavorable economic conditions. From an industry perspective, our Q1 results were driven by strength in both our AEC and manufacturing business segments.
Taking a closer look at AEC, we're really pleased to see growth being delivered by our Building Design Suite and our Infrastructure Design Suite. It's great to see strength in these core products, but what gets us excited is the interest we're seeing in the new cloud-based products like BIM 360, which is being adopted in the construction field and InfraWorks 360, which is being adopted by infrastructure firms.
InfraWorks is now being deployed in significant projects such as a hydro project in China and with a US state DOT for its planning and design projects. Our manufacturing team delivered a strong growth in Q1, driven by the contribution from Delcam. It's been a year since the Delcam acquisition and we are really pleased with the addition of the team and how that business has maintained its momentum, extending Autodesk much deeper into the manufacturing process with industry-leading CAM technology.
Delcam's focus is in the mold, tool and die sector as well as high-end production machining. Our HSM CAM business is focused on an integrated solution for the SMB market working with Inventor Fusion 360 and competitive products. Our HSM business closed hundreds of transactions and added hundreds of new customers in Q1.Once again, we are encouraged by what we're seeing with our cloud-based manufacturing products like PLM 360 and Fusion 360. PLM 360 continues to expand our base by attracting customers that are new to Autodesk, as well as being adopted by our existing customers.
We're also seeing a continued trend