Autodesk Inc (NASDAQ:ADSK) Q1 2016 Earnings Conference Call Transcript
May 19, 2015 • 05:00 pm ET
statement the following year. Of course, the model transition will positively impact deferred revenue and subscription additions, which we expect will continue to have healthy year-on-year growth rates during the transition years.
The unevenness of the current macro environment has reduced near-term visibility somewhat. When coupled with the persistent FX headwinds, it calls for a little bit more caution in our outlook. Our original assumption was that FY 2016 would be more back-end loaded than usual, given the deadline for end of sale for new perpetual individual product offerings. We continue to believe that's how the year will shape up and likely a little softer in the middle quarters.
Our forecast for FY 2016 now assumes seven points of currency headwinds for billings and five points of currency headwinds for revenue after applying our hedge, which equates to over $160 million of billings and over $100 million in revenue. That's a lot of money.
To wrap things up, we're pleased with the start of FY 2016 and the pace of our business transition. We remain confident in our long-term business model transition goals of 12% billings CAGR, 20% more customer value, 50% more subscriptions and 30% operating margins. We look forward to building on these early successes and transitioning Autodesk to a more profitable and recurring subscription based model over the coming years.
Operator, we'd now like to open the call up for questions.