Autodesk is helping solve infrastructure capacity issues: CEO

As AI seeps into all areas of the market, Autodesk (ADSK) CEO Andrew Anagnost joins Catalysts to discuss how the technology is changing the landscape for building out infrastructure.

"One of the things that we're trying to do with AI is we're just trying to break through this capacity challenge that all of our customers have. There's not enough money, materials, or people to build and rebuild everything that needs to be built and rebuilt. In the US alone, half the roads are in disrepair," Anagnost tells Yahoo Finance.

"Over the next 20 years, 250,000 bridges need to be repaired or replaced. So, what our customers need is simple, practical productivity increases that help them wrangle data and actually get their job done faster."

He explains that capacity is the biggest challenge facing construction and manufacturing, as companies struggle in the hiring, planning, and budgeting processes: "It's also a communication challenge — wrangling data, getting the right data to the right place at the right time to the right people is a critical workflow for our customers, and they all struggle with it."

In a similar type of use case, Kinetic Automation founder and CEO Nikhil Naikal spoke with Yahoo Finance earlier in the week about how the startup is utilizing AI and robotics to provide repair services for electric vehicles.

With the 2024 presidential election less than three weeks away, Anagnost is not too concerned about how infrastructure plans may change:

"It's a bipartisan issue. Everybody wants to fix the US Infrastructure. Everyone wants more competitive infrastructure in the country. So no matter who is in power, our customers are basically saying, 'Look, infrastructure is going to continue to be a big focus and a big investment area.' So it's not really a hot political issue."

Watch the video above to hear what Anagnost says about Autodesk's stock's performance and the company's outlook.

To watch more expert insights and analysis on the latest market action, check out more Catalysts here.

This post was written by Melanie Riehl

Video Transcript

Well, a I is changing the way we live and work, and our next guest is saying that one of the biggest opportunities is how transforming infrastructure here to talk about that and more.

We wanna bring in Andrew and Ignas.

He is the CEO of auto desk Andrew.

It's great to have you.

Thanks so much for taking the time to join us today.

You're joining us from the floor of Auto of the Expo floor at Auto Desk University.

Let's talk about what's on tap for auto Desk because we have seen this revival here within your so investors are excited about the opportunities that lie ahead.

I'm curious how you see a I really very much revolutionising the construction and the manufacturing industries.

Yeah, so you're right, Sean.

I'm here in San Diego with Auto Desk University, with about 10,000 of the world's architects, engineers and creators.

So it's really exciting, and it's a high energy environment right now with all of these customers.

One of the things that we're trying to do with a I is we're just trying to break through this capacity challenge that all of our customers have.

There's not enough money materials or people to build and rebuild everything that needs to be built and rebuilt.

You know, in the US alone, half the roads are in disrepair.

Over the next 20 years, 250,000 bridges need to be repaired or replaced.

So what our customers need is simple.

Practise productivity increases that help them wrangle data and actually get their job done faster.

And that's some of the things we're focusing on.

Here is we're rolling out features that actually help them do work that usually took weeks, do it in days, days to hours and really just give them some of that capacity back so they can actually meet the infrastructure challenges of the country.

What is the biggest challenge right now facing construction and manufacturing?

Is it capacity?

It is capacity, Absolutely.

You know, these people still have struggles hiring people.

They still struggle to kind of get through the additional planning processes on budget and on time.

It really is a fundamental capacity, and it's also a communication challenge.

Wrangling data.

Getting the right data to the right place at the right time to the right people is a critical workflow for our customers.

and they all struggle with it.

This is one of these areas where a I can really help Andrew when it comes to the election.

Lots of questions about.

Ultimately, if Trump were to be re elected, how that shift in the White House, what that would mean for spending on infrastructure, how big of a shift that would be from the Biden administration.

I'm curious from the customers that you're speaking with.

How are they planning for that?

Are they planning or are they making changes for that potential uncertainty?

You know, when it comes to infrastructure, Shana, it's a bipartisan issue.

Everybody wants to fix the US infrastructure.

Everyone wants more competitive infrastructure in the country.

So no matter who's in power, our customers are basically saying, Look, infrastructure is going to continue to be a big focus and a big investment area, So it's not really a hot political issue.

So look, look for the infrastructure projects to continue and the funding to continue to flow.

And let's talk about your stock and the performance that we've seen over the last several months.

It has been an outperformer over the last six months.

Morgan Stanley, recently naming it, uh, among the top picks there where they're seeing opportunity.

I'm curious just where you stand, given the activist investor pressure that you have seen, uh, most recently there where those talks stand in your plans in order to maintain some of this recent momentum that you've been able to regain.

Yeah.

So first off, what you're seeing in terms of momentum is a result of two years of hard work.

We were investing in kind of rebuilding the infrastructure of our business so that we could build multi multi year contracts annually.

You're seeing a free cash flow build up associated with that transition being completed.

We've also invested a year ago in changing the way we engage with our partners so that we can actually engage.

And one of the things that we really agree with the activist community on which is improving our sales and marketing productivity.

This is something that I think all of us can agree across the board, all the investment community, and we listen to the investment community a lot.

We need to improve our sales and marketing productivity, and we put the pieces in place to do that.

That's why you're seeing the rally.

This is actually the result of, you know, a couple of years of really difficult work, Andrew, just about 30 seconds here.

But now that we're seeing rates lowered here from the Fed, lower rates the ultimate impact.

How do you see that impacting future Capex plans and future plans?

Your strategy for auto desk look better access to capital.

Cheaper capital is a tail wind to everything our customers do.

There is a construction project project out there that doesn't run on credit.

So as these things move through the system, it absolutely creates a tail wind for a lot of our customers.

Sounds like it's going to be a catalyst for Auto Desk as well, Andrew.

And that's always great to have you here in Yahoo Finance.

Thanks so much for taking the time.

CEO of Auto Desk.

Thank you