UPDATED 19:28 EDT / AUGUST 23 2023

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Autodesk surprises analysts and investors with better-than-expected earnings

Computer-aided design software company Autodesk Inc. surprised analysts and investors alike today by delivering better-than-expected earnings and revenue in its fiscal second quarter.

For the quarter that ended July 30, Autodesk reported adjusted earnings per share of $1.91 on revenue of $1.345 billion, up 9% year-over-year. Analysts had been expecting earnings per share of $1.73 on revenue of $1.32 billion.

While Autodesk’s total revenue was up 9% in the quarter, the company’s total billings fell 8%, to $1.095 billion. Design revenue rose 8% year-over-year — 12% on a constant currency basis — but fell 6% from the previous quarter. Maker revenue rose 15% year-over-year, to $130 million, and up 7% from the previous quarter.

Autodesk’s subscription plan revenue rose 9%, or 13% in constant currency, to $1.27 billion, and 6% from the previous quarter. The company’s net revenue retention rate remained within the range of 100% to 110% on a constant currency basis.

As of the end of the quarter, deferred revenue sat at $4.23 billion, up 14% year-over-year, and cash flow from operating activities in the quarter was $135 million, down $122 million from the same quarter of last year.

“Resilience, discipline and opportunity again underpinned Autodesk’s strong financial and competitive performance, despite continued macroeconomic, policy and geopolitical headwinds,” Chief Executive Andrew Anagnost said in set remarks ahead of the company’s investor call. “Resilience provided by our subscription business model and our product and customer diversification; discipline and focus in executing our strategy and deploying capital through the economic cycle; and opportunity from developing next-generation technology and services which deliver end-to-end digital transformation of our Design and Make customers.”

The revenue and earnings beats were matched in Autodesk’s outlook numbers, with the company expecting third-quarter adjusted earnings per share of $1.97 to $2.03 on revenue of $1.38 billion to $1.4 billion. Analysts were expecting earnings per share of $1.92 on revenue of $1.38 billion.

For its full fiscal year 2024, Autodesk expects earnings per share of $7.30 to $7.49 — higher than an expected $7.28 — on revenue of $5.41 billion to $5.46 billion, higher at the midpoint than an expected $5.41 billion.

Investors liked the numbers, as Autodesk shares rose over 5% in late trading.

Image: Autodesk

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