Why Autodesk Fell Flat in Q2
Autodesk is scheduled to release its fiscal second quarter financial results after the markets closed on Thursday. The firm said that it had $0.65 in earnings per share (EPS) and $796.8 million in revenue, compared with consensus estimates that called…
Autodesk, Inc. (NASDAQ: ADSK | ADSK Price Prediction) is scheduled to release its fiscal second quarter financial results after the markets closed on Thursday. The firm said that it had $0.65 in earnings per share (EPS) and $796.8 million in revenue, compared with consensus estimates that called for $0.61 in EPS and $786.98 million in revenue. The same period from last year had $0.19 in EPS and $611.7 million in revenue.
During the quarter, total annualized recurring revenue (ARR) increased 31% to $3.07 billion as reported, and on a constant currency basis. Excluding fourth quarter acquisitions, total ARR increased 27% to $2.97 billion as reported, and 26% on a constant currency basis. On a sequential basis, total ARR increased 8% as reported, and 9% on a constant currency basis.
Total recurring revenue in the second quarter was 96% of total revenue, consistent with the second quarter last year.
Separately, total billings increased 48% year over year to $893 million.
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Looking ahead to the fiscal third quarter the company expects to see EPS in the range of $0.70 to $0.74 and revenue in the range of $820 million to $830 million. Consensus estimates are calling for $0.77 in EPS and $838.78 million in revenue for the coming quarter.
Andrew Anagnost, Autodesk president and CEO, commented:
We closed a solid first half of the year with a very strong second quarter as revenue, billings, earnings, and free cash flow came in ahead of expectations. ARR grew to a record $3.1 billion, driven by all parts of the business. Construction demonstrated continued strength with wins across all parts of the portfolio, and Fusion 360 – our design-to-manufacturing platform – continued to build momentum. We also made further strides in capturing opportunities within our non-paying user base. In an environment of increasing uncertainty, we believe we are well-positioned to achieve our FY23 goals.
Shares of Autodesk closed Tuesday at $150.21, with a 52-week range of $117.72 to $178.95. The consensus analyst price target is $188.73. Following the announcement, the stock was down about 8.5% at $137.50 in the after-hours session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
