Autodesk reported revenue of $1.47 billion for the fiscal fourth quarter ended Jan. 31, marking an 11% increase from the previous year (13% adjusted for currency). The company exceeded its guidance range and Wall Street consensus, showcasing its financial strength.
CEO Andrew Anagnost’s Insights
CEO Andrew Anagnost emphasized the robustness of Autodesk’s business, attributing its success to a high level of diversification across geography and industry groups. He highlighted the company’s ability to weather economic fluctuations due to this diversified approach.
Anagnost noted that while there was strength among enterprise customers and entry-level buyers in the January quarter, the middle market showed some softness. Despite weakness in the Asia-Pacific region, the U.S. business remained strong, underscoring the company’s resilience.
Embracing Generative Artificial Intelligence
Autodesk is actively integrating generative artificial intelligence into its applications to enhance the design process. Anagnost discussed the development of new technology that enables designers to rapidly create 3-D models from drawings or photographs with high speed and accuracy.
The company’s innovative approach aims to streamline design workflows by automating processes traditionally done manually. By leveraging generative artificial intelligence, Autodesk is empowering designers to produce high-quality models efficiently.
Autodesk’s commitment to advancing technology reflects its dedication to providing cutting-edge solutions to its customers. With a focus on innovation, the company continues to set itself apart in the competitive landscape of design software.
Anagnost on New Technology Monetization
Anagnost reveals that the company is currently exploring options on how to monetize the new technology, with plans for beta testing in the near future.
January Quarter Billings
In the January quarter, total billings reached $1.71 billion, marking a 19% decrease compared to the previous year. Despite this decline, the numbers exceeded expectations set at $1.64 billion. Anagnost attributes the year-over-year drop in billings to a strategic shift towards billing customers with three-year contracts annually, rather than all at once upfront. This transition has been largely completed, and the guidance indicates that billings are expected to resume year-over-year growth.
April Quarter Projections
Autodesk’s forecast for the April quarter anticipates revenue ranging between $1.385 billion and $1.4 billion, aligning with the Street consensus around $1.388 billion. The company also projects adjusted earnings for the quarter to fall between $1.73 and $1.78 per share, slightly below the consensus at $1.78 per share.
Fiscal Year 2025 Revenue Outlook
Looking ahead to fiscal year 2025, Autodesk forecasts revenue in the range of $5.99 billion to $6.09 billion, reflecting a growth of 9% to 11% compared to the previous year. This projection surpasses the consensus estimate of $5.962 billion. Full-year billings are expected to fall between $5.81 billion and $5.96 billion, showing an increase of 12% to 15%, consistent with Street expectations at $5.836 billion.
Profit and Free Cash Flow Predictions
Autodesk envisions full-year adjusted profits within the range of $7.89 to $8.11 per share, slightly lower than the Street’s estimate of $8.12 per share. The company also projects free cash flow for fiscal 2025 to be between $1.43 billion and $1.5 billion, in line with the Street’s forecast of $1.468 billion.
Impact on Earnings
Anagnost highlights that a change in software distribution methodology will impact earnings. This transition is anticipated to boost revenue in the short term but may decrease per-share profits by approximately 1% initially.
Market Performance
Autodesk shares have experienced a positive trend, with a 5% increase year-to-date and a substantial 29% growth over the past 12 months.
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