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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’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.
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Autodesk (ADSK) Q4 Earnings and Sales Surpass Estimates
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-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.