Back to top

Image: Bigstock

Autodesk (ADSK) Q3 Earnings and Sales Surpass Expectations

Read MoreHide Full Article

Autodesk (ADSK - Free Report) reported third-quarter fiscal 2024 non-GAAP earnings of $2.07 per share, which beat the Zacks Consensus Estimate by 4.02% and improved 21.8% year over year.

The company reported revenues of $1.41 billion, which beat the consensus mark by 1.89%. The figure grew 10.5% 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 and EPS Surprise

Autodesk, Inc. price-consensus-eps-surprise-chart | Autodesk, Inc. Quote

Top-Line Details

Autodesk’s subscription revenues (92.9% of total revenues) increased 10.6% year over year to $1.31 billion. Maintenance revenues (0.8% of total revenues) declined to $12 million compared with $16 million in the year-ago quarter. Other revenues (6.2% of total revenues) increased 15.8% to $88 million in the reported quarter.

Recurring revenues contributed 98% to Autodesk’s third-quarter fiscal 2024 revenues. The net revenue retention rate was within the company’s 100-110% targeted range.

Region-wise, revenues from the Americas (45.3% of revenues) increased 18.3% from the year-ago quarter’s levels to $640 million. Revenues from the EMEA, which accounted for 36.5% of revenues, climbed 8.4% to $516 million. Revenues from the Asia-Pacific (18.2% of revenues) declined 1.9% to $258 million.

Billings of $1.2 billion decreased 11% 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 (47.7% of revenues) revenues increased 17.4% year over year to $675 million. AutoCAD and AutoCAD LT (26.3% of revenues) revenues rose 5.1% to $372 million. MFG (19% of revenues) revenues increased 5.9% to $269 million. M&E (5.2% of revenues) revenues declined 6.4% to $73 million.

Operating Results

Autodesk reported a non-GAAP operating income of $547 million, up 17.6% year over year.

The non-GAAP operating margin expanded 240 basis points from the year-ago quarter’s levels to 38.7%.

Balance Sheet & Cash Flow

As of Oct 31, 2023, Autodesk had cash and cash equivalents (including marketable securities) of $1.95 billion compared with $2.07 billion as of Jan 31, 2023.

Deferred revenues increased 6% to $4.02 billion. Unbilled deferred revenues were $1.22 billion, representing an increase of $322 million from the year-ago quarter. Remaining performance obligations (RPO) increased 12% to $5.24 billion. Current RPO increased 12% to $3.52 billion.

Cash flow from operating activities was $18 million, representing a decrease of $451 million from the year-ago quarter. Free cash flow was $13 million, representing a decrease of $447 million from the year-ago quarter.

Fiscal 2024 Guidance

Autodesk projects fiscal 2024 revenues between $5,450 billion and $5,465 billion, indicating approximately 9% growth. Billings are estimated in the $5,075-$5,175 billion band, down in the range of 12-11% year over year.

Non-GAAP earnings are expected between $7.43 per share and $7.49 per share. ADSK expects non-GAAP operating margin to be flat year over year.

Free cash flow is anticipated in the $1,200-$1,260 million band.

For the fourth quarter of fiscal 2024, Autodesk expects revenues between $1,422 billion and $1,437 billion. Non-GAAP earnings are anticipated in the range of $1.91-$1.97 per share.

Zacks Rank & Key Picks

Autodesk has a Zacks Rank #4 (Sell) at present. Shares of ADSK have gained 16.5% year to date.

Some better-ranked stocks from the broader Computer and Technology sector are Adobe (ADBE - Free Report) , Asana (ASAN - Free Report) and Broadcom (AVGO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Adobe’s fourth-quarter fiscal 2024 earnings has remained steady at $4.13 per share in the past 30 days. For fiscal 2024, earnings estimates have remained steady at $15.93 in the past 30 days.

ADBE's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.29%. Shares of ADBE have rallied 81% year to date.

The Zacks Consensus Estimate for Asana's third-quarter 2023 loss per share is pegged at 11 cents per share in the past 30 days. For 2023, bottom-line estimates for loss have narrowed by a penny to a loss of 39 cents per share in the past 30 days.

ASAN's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 43.47%. Shares of ASAN have gained 50.8% year to date.

The Zacks Consensus Estimate for Broadcom's fourth-quarter fiscal 2024 earnings has remained unchanged for the past 30 days at $10.96 per share. For fiscal 2024, earnings estimates have remained steady at $42.14 per share in the past 30 days.

AVGO’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 1.61%. Shares of AVGO have climbed 75.5% year to date.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Autodesk, Inc. (ADSK) - free report >>

Adobe Inc. (ADBE) - free report >>

Broadcom Inc. (AVGO) - free report >>

Asana, Inc. (ASAN) - free report >>

Published in