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Autodesk (ADSK) Q1 Earnings and Sales Meet Expectations
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Autodesk (ADSK - Free Report) reported first-quarter fiscal 2024 non-GAAP earnings of $1.55 per share, which was in line with the Zacks Consensus Estimate. The bottom line improved 8.4% year over year.
The company reported revenues of $1.27 billion, which also matched the consensus mark. The figure grew 8% 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 (94% of total revenues) increased 10% year over year (up 13% on a constant-currency basis) to $1.19 billion. Maintenance revenues (1.1% of total revenues) declined to $14 million compared with $18 million in the year-ago quarter. Other revenues (4.9% of total revenues) fell 1.6% to $62 million in the reported quarter.
Recurring revenues contributed 98% to Autodesk’s first-quarter fiscal 2024 revenues. The net revenue retention rate was within the company’s 100-110% targeted range.
Region-wise, revenues from the Americas (43.6% of revenues) increased 14% from the year-ago quarter’s levels to $553 million. Revenues from the EMEA, which accounted for 37.4% of revenues, climbed 6% to $474 million. Revenues from the Asia-Pacific (19.1% of revenues) rallied 2% to $242 million.
Billings of $1.17 billion advanced 4% 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 (45.9% of revenues) revenues increased 8% year over year to $582 million. AutoCAD and AutoCAD LT (27.5% of revenues) revenues rose 7% to $349 million. MFG (19.4% of revenues) revenues increased 9% to $246 million. M&E (5.6% of revenues) revenues climbed 4% to $71 million.
Operating Results
Autodesk reported a non-GAAP operating income of $404 million, up 1.8% year over year.
The non-GAAP operating margin contracted 200 basis points from the year-ago quarter’s levels to 32%.
Balance Sheet & Cash Flow
As of Apr 30, 2023, Autodesk had cash and cash equivalents (including marketable securities) of $2.13 billion compared with $2.07 billion as of Jan 31, 2023.
Deferred revenues increased 20% year over year to $4.48 billion. Unbilled deferred revenues at the end of the fiscal first quarter were $904 million, down from $1.04 billion in the previous quarter.
The total remaining performance obligation (RPO) of $5.39 billion and the current RPO of $3.51 billion increased 15% and 12%, respectively.
Cash flow from operating activities was $723 million, while free cash flow was $714 million in the reported quarter.
Fiscal 2024 Guidance
Autodesk projects fiscal 2024 revenues between $5,355 billion and $5,455 billion, indicating 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 $7.07 per share and $7.41 per share. ADSK expects 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 second quarter of fiscal 2024, Autodesk expects revenues between $1,315 billion and $1,325 billion. Non-GAAP earnings are anticipated in the range of $1.70-$1.74 per share.
Zacks Rank & Key Picks
Autodesk has a Zacks Rank #4 (Sell) at present. Shares of ADSK have gained 3.1% over the past year.
The Zacks Consensus Estimate for Meta Platforms' second-quarter 2023 earnings has been revised 17.6% upward to $2.87 per share over the past 30 days. For 2023, earnings estimates have moved north by 14.8% to $12.04 in the past 30 days.
META’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 15.5%. Shares of the company have climbed 31.9% in the past year.
The Zacks Consensus Estimate for Momo’s first-quarter 2023 earnings has been revised southward from 36 cents to 32 cents per share over the past 60 days. For 2023, earnings estimates have moved down by 3 cents to $1.55 in the past 60 days.
MOMO's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 31.9%. Shares of the company have jumped 53.3% in the past year.
The Zacks Consensus Estimate for ServiceNow’s second-quarter 2023 earnings has been revised northward by 13 cents to $2.05 per share over the past 30 days. For 2023, earnings estimates have moved up by 37 cents to $9.59 in the past 30 days.
NOW's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 10.4%. Shares of the company have inched up 16.9% in the past year.
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Autodesk (ADSK) Q1 Earnings and Sales Meet Expectations
Autodesk (ADSK - Free Report) reported first-quarter fiscal 2024 non-GAAP earnings of $1.55 per share, which was in line with the Zacks Consensus Estimate. The bottom line improved 8.4% year over year.
The company reported revenues of $1.27 billion, which also matched the consensus mark. The figure grew 8% 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 (94% of total revenues) increased 10% year over year (up 13% on a constant-currency basis) to $1.19 billion. Maintenance revenues (1.1% of total revenues) declined to $14 million compared with $18 million in the year-ago quarter. Other revenues (4.9% of total revenues) fell 1.6% to $62 million in the reported quarter.
Recurring revenues contributed 98% to Autodesk’s first-quarter fiscal 2024 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 (43.6% of revenues) increased 14% from the year-ago quarter’s levels to $553 million. Revenues from the EMEA, which accounted for 37.4% of revenues, climbed 6% to $474 million. Revenues from the Asia-Pacific (19.1% of revenues) rallied 2% to $242 million.
Billings of $1.17 billion advanced 4% 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 (45.9% of revenues) revenues increased 8% year over year to $582 million. AutoCAD and AutoCAD LT (27.5% of revenues) revenues rose 7% to $349 million. MFG (19.4% of revenues) revenues increased 9% to $246 million. M&E (5.6% of revenues) revenues climbed 4% to $71 million.
Operating Results
Autodesk reported a non-GAAP operating income of $404 million, up 1.8% year over year.
The non-GAAP operating margin contracted 200 basis points from the year-ago quarter’s levels to 32%.
Balance Sheet & Cash Flow
As of Apr 30, 2023, Autodesk had cash and cash equivalents (including marketable securities) of $2.13 billion compared with $2.07 billion as of Jan 31, 2023.
Deferred revenues increased 20% year over year to $4.48 billion. Unbilled deferred revenues at the end of the fiscal first quarter were $904 million, down from $1.04 billion in the previous quarter.
The total remaining performance obligation (RPO) of $5.39 billion and the current RPO of $3.51 billion increased 15% and 12%, respectively.
Cash flow from operating activities was $723 million, while free cash flow was $714 million in the reported quarter.
Fiscal 2024 Guidance
Autodesk projects fiscal 2024 revenues between $5,355 billion and $5,455 billion, indicating 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 $7.07 per share and $7.41 per share. ADSK expects 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 second quarter of fiscal 2024, Autodesk expects revenues between $1,315 billion and $1,325 billion. Non-GAAP earnings are anticipated in the range of $1.70-$1.74 per share.
Zacks Rank & Key Picks
Autodesk has a Zacks Rank #4 (Sell) at present. Shares of ADSK have gained 3.1% over the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Meta Platforms (META - Free Report) , Momo (MOMO - Free Report) and ServiceNow (NOW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Meta Platforms' second-quarter 2023 earnings has been revised 17.6% upward to $2.87 per share over the past 30 days. For 2023, earnings estimates have moved north by 14.8% to $12.04 in the past 30 days.
META’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 15.5%. Shares of the company have climbed 31.9% in the past year.
The Zacks Consensus Estimate for Momo’s first-quarter 2023 earnings has been revised southward from 36 cents to 32 cents per share over the past 60 days. For 2023, earnings estimates have moved down by 3 cents to $1.55 in the past 60 days.
MOMO's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 31.9%. Shares of the company have jumped 53.3% in the past year.
The Zacks Consensus Estimate for ServiceNow’s second-quarter 2023 earnings has been revised northward by 13 cents to $2.05 per share over the past 30 days. For 2023, earnings estimates have moved up by 37 cents to $9.59 in the past 30 days.
NOW's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 10.4%. Shares of the company have inched up 16.9% in the past year.