Autodesk (ADSK) reports strong Q1 earnings and sales growth, exceeding expectations

From NASDAQ: 2024-06-12 10:07:00

Autodesk (ADSK) reported first-quarter fiscal 2025 non-GAAP earnings of $1.87 per share, beating estimates by 5.06% and growing 20.6% year over year. Revenues of $1.42 billion also surpassed expectations by 1.46%, increasing 11.7% from the previous year. The company attributes the growth to subscription renewal rates, new business growth, and competitive performance.

Autodesk’s subscription revenues increased 11.5% to $1.33 billion in the first quarter of fiscal 2025, contributing 93.9% of total revenues. Maintenance revenues declined, while other revenues saw a 22.6% increase. Recurring revenues accounted for 97% of total revenues, with the company’s net retention rate falling within the targeted range of 100-110%. Region-wise, revenues from the Americas, EMEA, and Asia-Pacific all saw significant growth.

Product-wise, Autodesk offers four main families – AEC, AutoCAD and AutoCAD LT, Manufacturing, and Media and Entertainment. AEC revenues increased by 15.8%, AutoCAD and AutoCAD LT revenues rose by 7.7%, MFG revenues surged by 8.9%, while M&E revenues remained steady.

Autodesk’s non-GAAP operating income grew by 21.3% year over year, with an operating margin expansion of 270 basis points. As of April 30, 2024, the company had cash and cash equivalents of $1.99 billion, with deferred revenues decreasing by 12% to $3.96 billion.

For fiscal 2025, Autodesk projects revenues between $5.99 billion and $6.09 billion, with billings set to grow between 12-15%. Non-GAAP earnings per share are expected to range between $7.99 and $8.21, with a free cash flow anticipated to be between $1.43 billion and $1.5 billion. In the second quarter of fiscal 2025, revenues are expected to be between $1.475 billion and $1.49 billion, with non-GAAP earnings per share in the range of $1.98-$2.04.



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