Autodesk Surprises By Beating All Key Metrics Due To Healthy Product Demand

On Thursday, Autodesk Inc (NASDAQ: ADSK) reported a revenue and profit beat in its fiscal second quarter, while also issuing a better-than-expected guidance as customers look to optimize their construction software in response to increased demand. During after-market trading, the San Francisco-based company who is also among collaborators of NVIDIA Corporation (NASDAQ: NVDA) rose 6% in after-market trading.

Second Quarter Results

For the quarter that ended on July 31st, Autodesk reported revenue rose 9% YoY to $1.35 billion topping estimates of $1.32 billion, but total billings contracted 8% to $1.095 billion.

The Architecture, Engineering and Construction segment rose 11% YoY, generating revenue of $627 million. Design revenue rose 8% YoY or 12% on a constant currency basis, but dropping 6% from the previous quarter. Maker revenue rose 15% YoY to $130 million, which is a 7% increase from the previous quarter. Subscription plans experienced a revenue rise of 9%, or 13% in constant currency, to $1.27 billion, which is a 6% compared to the previous quarter. 

On a constant currency basis, net revenue retention rate remained within the range of 100% to 110% on a constant currency basis. Adjusted earnings amounted to $1.91 per share, topping profit estimates of $1.73 per share.

Outlook

The computer-aided design software company, whose software is used by construction, engineering and manufacturing companies, guided third-quarter revenue to be in the range between $1.38 billion and $1.40 billion, topping Refinitiv’s estimates of $1.38 billion, with earnings per share expected in the range between $1.97 to $2.03, also topping the estimated $1.92.

As for full fiscal year 2024, earnings per share are guided in the range between $7.30 and $7.49, above the expected $7.28. Full year revenue is expected to be between $5.41 billion and $5.46 billion, while analysts estimated $5.41 billion.

Autodesk is benefiting from the fact that companies are turning to digital transformation in an effort to overcome limitations in terms of labor, money and materials. Chief Executive Andrew Anagnost remarked that that the strong figures and positioning are owed to the AutoCad maker’s resilience, discipline and action upon new opportunities. 

Anagnost  also added that Autodesk was always an AI player, and it will use this technology for the purpose of boosting productivity and therefore, optimizing construction design in terms of making it cheaper and more sustainable, as opposed to automating creativity which is a source of endless opportunity. 

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.