Autodesk (ADSK - Free Report) reported first-quarter fiscal 2023 non-GAAP earnings of $1.43 per share that beat the Zacks Consensus Estimate of $1.33 per share by 7.5%. The bottom line improved 38.8% year over year.
The company reported revenues of $1.17 billion, surpassing the consensus mark of $1.15 billion. The figure grew 18% year over year. At constant currency, revenues were up 17%. The upside was driven by new product subscriptions and higher renewal rates.
Top-Line Details
Autodesk’s subscription revenues (93.1% of total revenues) increased 17% year over year (up 17% on a constant currency basis) to $1.09 billion. However, maintenance revenues (1.5% of total revenues) slumped 5.3% year over year to $18 million. Other revenues (5.4% of total revenues) surged 46.5% to $63 million in the reported quarter.
Recurring revenues contributed 98% to Autodesk’s first-quarter fiscal 2023 revenues. Net revenue retention rate was within the 100-110% range.
Region-wise, revenues from the Americas (41.4% of revenues) increased 24% from the year-ago quarter’s levels to $484 million. Revenues from Europe, Middle East and Africa (EMEA), which accounted for 38.4% of revenues, climbed 17% to $449 million. Revenues from Asia-Pacific (20.3% of revenues) rallied 10% to $237 million.
Billings of $1.13 billion advanced 16% year over year in the reported quarter.
Products 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 (44.3% of revenues) revenues increased 17% year over year to $518 million. AutoCAD and AutoCAD LT (29.6% of revenues) revenues rose 21% to $346 million. MFG (19.2% of revenues) revenues increased 14% to $225 million.
M&E (5.8% of revenues) surged 24% to $68 million, while other revenues (1.1% of revenues) increased 44% to $13 million.
Operating Results
Autodesk reported a non-GAAP operating income of $397 million, up 41.8% year over year.
Non-GAAP operating margin expanded 600 basis points (“bps”) from the year-ago quarter’s levels to 34%.
Balance Sheet & Cash Flow
As of Apr 30, 2022, Autodesk had cash and cash equivalents (including marketable securities) of $1.59 billion compared with $1.76 billion as of Jan 31, 2022.
Deferred revenues increased 12% to $3.75 billion. Unbilled deferred revenues at the end of the fiscal first quarter were $934 million, up 5.1% year over year.
Total remaining performance obligation (RPO) of $4.68 billion and current RPO of $3.14 billion increased 11% and 10%, respectively.
Cash flow from operating activities was $434 million, while free cash flow was $422 million in the reported quarter.
In the quarter under review, the company repurchased 2.1 million shares for $436 million at an average price of approximately $212 per share.
Guidance
For the second quarter of fiscal 2023, Autodesk expects revenues between $1.220 billion and $1.235 billion. Non-GAAP earnings are anticipated to be $1.54-$1.60 per share.
For fiscal 2023, Autodesk expects revenues between $4.960 billion and $5.060 billion, indicating growth of 13-15% year over year. Non-GAAP earnings are expected between $6.43 and $6.66 per share.
Billings are estimated to be $5.680-$5.830 billion, suggesting an increase of 18-21% year over year.
The company expects a non-GAAP operating margin of approximately 36% in fiscal 2023. Free cash flow is projected to be $2.000-$2.080 billion.
Zacks Rank & Key Picks
Autodesk currently carries a Zacks Rank #4 (Sell). Shares of ADSK have declined 33.2% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Avnet (AVT - Free Report) , Analog Devices (ADI - Free Report) and Axcelis Technologies (ACLS - Free Report) . While Avnet and Analog Devices sport a Zacks Rank #1 (Strong Buy), Axcelis carries a Zacks Rank of 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Avnet's fourth-quarter fiscal 2022 earnings has been revised 55 cents northward to $1.96 per share over the past 30 days. For 2022, earnings estimates have moved 20.5% north to $6.83 per share in the past 30 days.
Avnet's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21.2%. Shares of AVT have gained 7% in the past year.
The Zacks Consensus Estimate for Analog Devices' third-quarter fiscal 2022 earnings has been revised 5 cents upward to $2.42 per share over the past seven days. For fiscal 2022, earnings estimates have moved 16 cents north to $9.24 per share in the past seven days.
Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 7.7%. Shares of ADI have increased 0.5% in the past year.
The Zacks Consensus Estimate for Axcelis' second-quarter 2022 earnings has been revised 3 cents upward to 99 cents per share over the past 30 days. For 2022, ACLS' earnings estimates have moved 41 cents north to $4.40 per share in the past 30 days.
Axcelis' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 23.5%. Shares of ACLS have jumped 46.4% in the past year.
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Autodesk (ADSK - Free Report) reported first-quarter fiscal 2023 non-GAAP earnings of $1.43 per share that beat the Zacks Consensus Estimate of $1.33 per share by 7.5%. The bottom line improved 38.8% year over year.
The company reported revenues of $1.17 billion, surpassing the consensus mark of $1.15 billion. The figure grew 18% year over year. At constant currency, revenues were up 17%. The upside was driven by new product subscriptions and higher renewal rates.
Top-Line Details
Autodesk’s subscription revenues (93.1% of total revenues) increased 17% year over year (up 17% on a constant currency basis) to $1.09 billion. However, maintenance revenues (1.5% of total revenues) slumped 5.3% year over year to $18 million. Other revenues (5.4% of total revenues) surged 46.5% to $63 million in the reported quarter.
Recurring revenues contributed 98% to Autodesk’s first-quarter fiscal 2023 revenues. Net revenue retention rate was within the 100-110% range.
Region-wise, revenues from the Americas (41.4% of revenues) increased 24% from the year-ago quarter’s levels to $484 million. Revenues from Europe, Middle East and Africa (EMEA), which accounted for 38.4% of revenues, climbed 17% to $449 million. Revenues from Asia-Pacific (20.3% of revenues) rallied 10% to $237 million.
Billings of $1.13 billion advanced 16% year over year in the reported quarter.
Products 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 (44.3% of revenues) revenues increased 17% year over year to $518 million. AutoCAD and AutoCAD LT (29.6% of revenues) revenues rose 21% to $346 million. MFG (19.2% of revenues) revenues increased 14% to $225 million.
M&E (5.8% of revenues) surged 24% to $68 million, while other revenues (1.1% of revenues) increased 44% to $13 million.
Operating Results
Autodesk reported a non-GAAP operating income of $397 million, up 41.8% year over year.
Non-GAAP operating margin expanded 600 basis points (“bps”) from the year-ago quarter’s levels to 34%.
Balance Sheet & Cash Flow
As of Apr 30, 2022, Autodesk had cash and cash equivalents (including marketable securities) of $1.59 billion compared with $1.76 billion as of Jan 31, 2022.
Deferred revenues increased 12% to $3.75 billion. Unbilled deferred revenues at the end of the fiscal first quarter were $934 million, up 5.1% year over year.
Total remaining performance obligation (RPO) of $4.68 billion and current RPO of $3.14 billion increased 11% and 10%, respectively.
Cash flow from operating activities was $434 million, while free cash flow was $422 million in the reported quarter.
In the quarter under review, the company repurchased 2.1 million shares for $436 million at an average price of approximately $212 per share.
Guidance
For the second quarter of fiscal 2023, Autodesk expects revenues between $1.220 billion and $1.235 billion. Non-GAAP earnings are anticipated to be $1.54-$1.60 per share.
For fiscal 2023, Autodesk expects revenues between $4.960 billion and $5.060 billion, indicating growth of 13-15% year over year. Non-GAAP earnings are expected between $6.43 and $6.66 per share.
Billings are estimated to be $5.680-$5.830 billion, suggesting an increase of 18-21% year over year.
The company expects a non-GAAP operating margin of approximately 36% in fiscal 2023. Free cash flow is projected to be $2.000-$2.080 billion.
Zacks Rank & Key Picks
Autodesk currently carries a Zacks Rank #4 (Sell). Shares of ADSK have declined 33.2% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Avnet (AVT - Free Report) , Analog Devices (ADI - Free Report) and Axcelis Technologies (ACLS - Free Report) . While Avnet and Analog Devices sport a Zacks Rank #1 (Strong Buy), Axcelis carries a Zacks Rank of 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Avnet's fourth-quarter fiscal 2022 earnings has been revised 55 cents northward to $1.96 per share over the past 30 days. For 2022, earnings estimates have moved 20.5% north to $6.83 per share in the past 30 days.
Avnet's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21.2%. Shares of AVT have gained 7% in the past year.
The Zacks Consensus Estimate for Analog Devices' third-quarter fiscal 2022 earnings has been revised 5 cents upward to $2.42 per share over the past seven days. For fiscal 2022, earnings estimates have moved 16 cents north to $9.24 per share in the past seven days.
Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 7.7%. Shares of ADI have increased 0.5% in the past year.
The Zacks Consensus Estimate for Axcelis' second-quarter 2022 earnings has been revised 3 cents upward to 99 cents per share over the past 30 days. For 2022, ACLS' earnings estimates have moved 41 cents north to $4.40 per share in the past 30 days.
Axcelis' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 23.5%. Shares of ACLS have jumped 46.4% in the past year.
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