Yahoo Finance Autodesk (ADSK) Q1 Earnings and Sales Surpass Expectations
Autodesk ADSK reported first-quarter fiscal 2025 non-GAAP earnings of $1.87 per share, which beat the Zacks Consensus Estimate by 5.06% and improved 20.6% year over year.
The company reported revenues of $1.42 billion, which beat the consensus mark by 1.46%. The figure grew 11.7% year over year. The upside was driven by steady subscription renewal rates, new business growth and strong competitive performance.
Autodesk, Inc. Price, Consensus and EPS Surprise
Autodesk, Inc. price-consensus-eps-surprise-chart | Autodesk, Inc. Quote
Top-Line Details
Autodesk’s subscription revenues (93.9% of total revenues) increased 11.5% year over year to $1.33 billion. Maintenance revenues (0.8% of total revenues) declined to $11 million compared with $14 million in the year-ago quarter. Other revenues (5.4% of total revenues) increased 22.6% to $76 million in the reported quarter.
Recurring revenues contributed 97% to Autodesk’s first-quarter fiscal 2025 revenues. The net revenue retention rate was within the company’s 100-110% targeted range.
Region-wise, revenues from the Americas (43.7% of total revenues) increased 11.9% from the year-ago quarter’s levels to $619 million. Revenues from the EMEA, which accounted for 37.7% of revenues, climbed 12.7% to $534 million. Revenues from the Asia-Pacific (18.6% of revenues) increased 9.1% to $264 million.
Billings of $1.11 billion decreased 5% year over year in the reported quarter.
Product Top-Line Details
Autodesk offers primarily four product families — Architecture, Engineering and Construction (AEC), AutoCAD and AutoCAD LT, Manufacturing (MFG) and Media and Entertainment (M&E).
AEC revenues (47.6% of total revenues) climbed 15.8% year over year to $674 million. AutoCAD and AutoCAD LT revenues (26.5% of total revenues) rose 7.7% to $376 million. MFG revenues (18.9% of total revenues) increased 8.9% to $268 million. M&E revenues (5% of total revenues) remained unchanged at $71 million.
Operating Results
Autodesk reported a non-GAAP operating income of $490 million, up 21.3% year over year.
The non-GAAP operating margin expanded 270 basis points from the year-ago quarter’s levels to 34.6%.
Balance Sheet & Cash Flow
As of Apr 30, 2024, Autodesk had cash and cash equivalents (including marketable securities) of $1.99 billion compared with $2.2 billion as of Jan 31, 2024.
Deferred revenues decreased 12% to $3.96 billion. Unbilled deferred revenues were $1.93 billion, representing an increase of $1.03 billion from the year-ago quarter’s figure. Remaining performance obligations (RPO) increased 9% to $5.89 billion. Current RPO increased 12% to $3.92 billion.
Cash flow from operating activities was $494 million, representing a decrease of $229 million from the year-ago quarter’s figure. Free cash flow was $487 million, representing a decline of $227 million from the year-ago quarter’s actuals.
Fiscal 2025 Guidance
Autodesk projects fiscal 2025 revenues between $5.99 billion and $6.09 billion, indicating 9-11% growth. Billings are estimated in the $5.81-$5.96 billion band, suggesting growth of 12-15% year over year.
Non-GAAP earnings per share are expected between $7.99 and $8.21. ADSK expects a non-GAAP operating margin between 35% and 36% year over year.
Free cash flow is anticipated in the $1.43-$1.5 billion band.
For the second quarter of fiscal 2025, Autodesk expects revenues between $1.475 billion and $1.49 billion. Non-GAAP earnings are anticipated in the range of $1.98-$2.04 per share.
Zacks Rank & Other Key Picks
Autodesk carries a Zacks Rank #2 (Buy) at present. Shares of ADSK have plunged 13.1% year to date.
Some other top-ranked stocks from the broader Computer and Technology sector are AppFolio APPF, Arista Networks ANET and Alphabet GOOGL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AppFolio’s 2024 EPS has been revised upward by 3 cents to $4 in the past 30 days. Shares of APPF have jumped 35.2% in the year-to-date period.
The Zacks Consensus Estimate for ANET’s 2024 EPS has been revised upward by 43 cents to $7.92 in the past 30 days. Shares of ANET have climbed 29.4% in the year-to-date period.
The Zacks Consensus Estimate for Alphabet’s 2024 EPS has been revised upward by 3 cents to $7.60 in the past 30 days. Shares of GOOGL have gained 26.7% in the year-to-date period.
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