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Autodesk's (ADSK) Q4 Earnings and Revenues Surpass Estimates
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Autodesk (ADSK - Free Report) reported fourth-quarter fiscal 2023 non-GAAP earnings of $1.86 per share beating the Zacks Consensus Estimate of $1.81 per share. The bottom line improved 24% year over year.
The company reported revenues of $1.32 billion, which surpassed the consensus mark of $1.31 billion. The figure grew 9% year over year. On a constant-currency basis, revenues were up 12%. The upside was driven by resilient subscription renewal rates, new business growth and strong competitive performance.
Top-Line Details
Autodesk’s subscription revenues (92.1% of total revenues) increased 11% year over year (up 14% on a constant-currency basis) to $1.21 billion. Maintenance revenues (1.1% of total revenues) declined to $14 million from $22 million in the year-ago quarter. Other revenues (6.8% of total revenues) fell 6.3% to $90 million in the reported quarter.
Recurring revenues contributed 98% to Autodesk’s fourth-quarter fiscal 2023 revenues. The net revenue retention rate was within the company’s 100-110% targeted range.
Region-wise, revenues from the Americas (41.9% of revenues) increased 13% from the year-ago quarter’s levels to $552 million. Revenues from the EMEA, which accounted for 38.5% of revenues, climbed 7% to $508 million. Revenues from the Asia-Pacific (19.6% of revenues) rallied 4% to $258 million.
Billings of $2.12 billion advanced 28% 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 (45.7% of revenues) revenues increased 11% year over year to $602 million. AutoCAD and AutoCAD LT (27.5% of revenues) revenues rose 9% to $362 million. MFG (19.5% of revenues) revenues increased 4% to $257 million. M&E (5.6% of revenues) revenues dropped 10% to $74 million.
Operating Results
Autodesk reported a non-GAAP operating income of $479 million, up 13.8% year over year.
The non-GAAP operating margin expanded 100 basis points (bps) from the year-ago quarter’s levels to 36%.
Balance Sheet & Cash Flow
As of Jan 31, 2023, Autodesk had cash and cash equivalents (including marketable securities) of $2.07 billion compared with $1.80 billion as of Oct 31, 2022.
Deferred revenues increased 21% year over year to $4.58 billion. Unbilled deferred revenues at the end of the fiscal fourth quarter were $1.04 billion, up from $896 million in the previous quarter.
The total remaining performance obligation (RPO) of $5.62 billion and the current RPO of $3.5 billion increased 19% and 12%, respectively.
Cash flow from operating activities was $911 million, while free cash flow was $903 million in the reported quarter. During fiscal 2023, ADSK generated $2.07 billion worth of cash from operating activities and its free cash flow was $2.03 billion.
In fiscal 2023, the company repurchased 5.5 million shares for $1.1 billion at an average price of approximately $198 per share.
Fiscal 2023 Highlights
For the full-year 2023, Autodesk reported revenues of $5.01 billion, indicating a surge of 14% year over year (up 15% on a constant-currency basis).
The company reported non-GAAP earnings of $6.63 per share, witnessing an increase of 30.8%.
Non-GAAP operating income was $1.79 billion compared with fiscal 2022’s $1.40 billion. Non-GAAP operating margin expanded 400 bps to 36%.
Billings of $5.80 billion increased 20% year over year in fiscal 2023.
Fiscal 2024 Guidance
Autodesk projects fiscal 2024 revenues between $5,355 billion and $5,455 billion, indicating a 7-9% growth. Billings are estimated in the $5,025-$5,175 billion band, down in the range of 13-11% year over year.
Non-GAAP earnings are expected between $6.98 and $7.32 per share. ADSK expects the non-GAAP operating margin to be flat year over year.
Free cash flow is anticipated in the $1,150-$1,250 billion band.
For the first quarter of fiscal 2023, Autodesk expects revenues between $1,260 billion and $1,275 billion. Non-GAAP earnings are anticipated in the range of $1.50-$1.56 per share.
Zacks Rank & Key Picks
Autodesk carries a Zacks Rank #4 (Sell). Shares of ADSK have gained 0.7% over the past year.
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Autodesk's (ADSK) Q4 Earnings and Revenues Surpass Estimates
Autodesk (ADSK - Free Report) reported fourth-quarter fiscal 2023 non-GAAP earnings of $1.86 per share beating the Zacks Consensus Estimate of $1.81 per share. The bottom line improved 24% year over year.
The company reported revenues of $1.32 billion, which surpassed the consensus mark of $1.31 billion. The figure grew 9% year over year. On a constant-currency basis, revenues were up 12%. The upside was driven by resilient subscription renewal rates, new business growth and strong competitive performance.
Top-Line Details
Autodesk’s subscription revenues (92.1% of total revenues) increased 11% year over year (up 14% on a constant-currency basis) to $1.21 billion. Maintenance revenues (1.1% of total revenues) declined to $14 million from $22 million in the year-ago quarter. Other revenues (6.8% of total revenues) fell 6.3% to $90 million in the reported quarter.
Recurring revenues contributed 98% to Autodesk’s fourth-quarter fiscal 2023 revenues. The net revenue retention rate was within the company’s 100-110% targeted range.
Autodesk, Inc. Price, Consensus and EPS Surprise
Autodesk, Inc. price-consensus-eps-surprise-chart | Autodesk, Inc. Quote
Region-wise, revenues from the Americas (41.9% of revenues) increased 13% from the year-ago quarter’s levels to $552 million. Revenues from the EMEA, which accounted for 38.5% of revenues, climbed 7% to $508 million. Revenues from the Asia-Pacific (19.6% of revenues) rallied 4% to $258 million.
Billings of $2.12 billion advanced 28% 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 (45.7% of revenues) revenues increased 11% year over year to $602 million. AutoCAD and AutoCAD LT (27.5% of revenues) revenues rose 9% to $362 million. MFG (19.5% of revenues) revenues increased 4% to $257 million. M&E (5.6% of revenues) revenues dropped 10% to $74 million.
Operating Results
Autodesk reported a non-GAAP operating income of $479 million, up 13.8% year over year.
The non-GAAP operating margin expanded 100 basis points (bps) from the year-ago quarter’s levels to 36%.
Balance Sheet & Cash Flow
As of Jan 31, 2023, Autodesk had cash and cash equivalents (including marketable securities) of $2.07 billion compared with $1.80 billion as of Oct 31, 2022.
Deferred revenues increased 21% year over year to $4.58 billion. Unbilled deferred revenues at the end of the fiscal fourth quarter were $1.04 billion, up from $896 million in the previous quarter.
The total remaining performance obligation (RPO) of $5.62 billion and the current RPO of $3.5 billion increased 19% and 12%, respectively.
Cash flow from operating activities was $911 million, while free cash flow was $903 million in the reported quarter. During fiscal 2023, ADSK generated $2.07 billion worth of cash from operating activities and its free cash flow was $2.03 billion.
In fiscal 2023, the company repurchased 5.5 million shares for $1.1 billion at an average price of approximately $198 per share.
Fiscal 2023 Highlights
For the full-year 2023, Autodesk reported revenues of $5.01 billion, indicating a surge of 14% year over year (up 15% on a constant-currency basis).
The company reported non-GAAP earnings of $6.63 per share, witnessing an increase of 30.8%.
Non-GAAP operating income was $1.79 billion compared with fiscal 2022’s $1.40 billion. Non-GAAP operating margin expanded 400 bps to 36%.
Billings of $5.80 billion increased 20% year over year in fiscal 2023.
Fiscal 2024 Guidance
Autodesk projects fiscal 2024 revenues between $5,355 billion and $5,455 billion, indicating a 7-9% growth. Billings are estimated in the $5,025-$5,175 billion band, down in the range of 13-11% year over year.
Non-GAAP earnings are expected between $6.98 and $7.32 per share. ADSK expects the non-GAAP operating margin to be flat year over year.
Free cash flow is anticipated in the $1,150-$1,250 billion band.
For the first quarter of fiscal 2023, Autodesk expects revenues between $1,260 billion and $1,275 billion. Non-GAAP earnings are anticipated in the range of $1.50-$1.56 per share.
Zacks Rank & Key Picks
Autodesk carries a Zacks Rank #4 (Sell). Shares of ADSK have gained 0.7% over the past year.
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