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Autodesk (ADSK) Q4 Earnings and Sales Surpass Estimates

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Autodesk (ADSK - Free Report) reported fourth-quarter fiscal 2024 non-GAAP earnings of $2.09 per share, which beat the Zacks Consensus Estimate by 7.18% and improved 12.4% year over year.

The company reported revenues of $1.46 billion, which beat the consensus mark by 2.66%. The figure rose 11.5% 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 (91.2% of total revenues) increased 10.3% year over year to $1.33 billion. Maintenance revenues (1% of total revenues) remained flat year over year at $14 million. Other revenues (7.9% of total revenues) jumped 28.9% to $116 million in the reported quarter.

Recurring revenues contributed 98% to Autodesk’s fourth-quarter fiscal 2024 revenues. The net revenue retention rate was within the company’s 100-110% targeted range, on a constant currency (cc) basis.

Region-wise, revenues from the Americas (35.2% of revenues) climbed 14.6% from the year-ago quarter’s levels to $517 million. Revenues from the EMEA, which accounted for 37.2% of revenues, increased 7.5% to $546 million. Revenues from the Asia-Pacific (18.2% of revenues) rose 3.5% to $267 million.

Billings of $1.71 billion decreased 19% 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 revenues (47.4% of revenues) increased 15.6% year over year to $696 million. AutoCAD and AutoCAD LT revenues (25.7% of revenues) rose 4.1% to $377 million. MFG revenues (19.9% of revenues) were up 13.6% to $292 million. M&E (5.2% of revenues) revenues rose 4.1% to $77 million.

Operating Results

Autodesk reported a non-GAAP operating income of $522 million, up 9% year over year.

The non-GAAP operating margin contracted 80 basis points from the year-ago quarter’s levels to 35.5%.

Balance Sheet & Cash Flow

As of Jan 31, 2024, Autodesk had cash and cash equivalents (including marketable securities) of $2.2 billion compared with $1.95 billion as of Oct 31, 2023.

Deferred revenues decreased 7% to $4.26 billion. Unbilled deferred revenues were $1.84 billion, which increased $801 million from the year-ago quarter's level. Remaining performance obligations (RPO) rose 9% to $6.11 billion. Current RPO climbed 13% to $3.98 billion.

Cash flow from operating activities totaled $437 million, which decreased $474 million from the year-ago quarter's level. Free cash flow was $427 million, which declined $476 million from the year-ago quarter's level.

Fiscal 2025 Guidance

Autodesk projects fiscal 2025 revenues between $5.99 billion and $6.09 billion, indicating approximately 9-11% growth. Billings are estimated in the $5.81-$5.96 billion band, down in the range of 12-15% year over year.

Non-GAAP earnings per share are expected between $7.89 and $8.11. ADSK expects a non-GAAP operating margin between 35% and 36% year over year.

Free cash flow is anticipated in the $1.43-$1.5 billion band.

For the first quarter of fiscal 2025, Autodesk expects revenues between $1.385 billion and $1.4 billion. Non-GAAP earnings are anticipated in the range of $1.73-$1.78 per share.

Zacks Rank & Key Picks

Autodesk has a Zacks Rank #4 (Sell) at present. Shares of ADSK have risen 6% year to date.

Crowdstrike (CRWD - Free Report) , SEMrush (SEMR - Free Report) and Adobe (ADBE - Free Report) are some better-ranked stocks that investors can consider in the broader Computer and Technology sector.

CRWD sports a Zacks Rank #1 (Strong Buy) at present, while SEMR and ADBE carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Crowdstrike have returned 24% year to date. CRWD is scheduled to release fourth-quarter and fiscal 2024 results on Mar 5.

Shares of SEMrush have lost 8.3% year to date. SEMR is set to report first-quarter fiscal 2024 results on Mar 4.

Shares of Adobe have lost 5.7% year to date. ADBE is set to release first-quarter fiscal 2024 results on Mar 13.

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