Autodesk Inc. (NASDAQ: ADSK) reported its fiscal second-quarter financial results after the markets closed on Thursday. The company had $0.19 in earnings per share (EPS) on $610 million in revenue, compared to consensus estimates from Thomson Reuters that called for $0.17 in EPS on $612.42 million. The same period from the previous year had $0.35 in EPS on $637.10 million in revenue.

Deferred revenue increased 26% to $1.2 billion, compared to $981 million in the second quarter last year. At the same time, total billings increased 7% year over year and 15% on a constant currency basis.

Looking at the second half of this fiscal year, Autodesk is maintaining its billings and subscriptions outlook but it is now expecting a greater portion of sales to shift from perpetual licenses to new subscription types.

In terms of guidance, the company expects EPS in the range of $0.05 to $0.10 and revenue in the range of $580 million to $600 million for the fiscal third quarter compared to the consensus estimates of $0.24 in EPS on $628.27 million in revenue.

Separate from the earnings report, Autodesk announced that it signed an agreement to acquire SeeControl, a San Francisco-based developer of an enterprise Internet of Things (IoT) cloud service platform. The SeeControl service helps manufacturers and systems integrators connect, analyze, control, and manage remote products, things, and assets, and create new service revenue opportunities. This transaction is still subject to customary closing conditions and is expected to close by October 31. This transaction is expected to have no impact on Autodesk’s guidance that was issued in the earnings report.

Carl Bass, Autodesk’s president and CEO, commented on earnings:

We are pleased with the progress of our business model transition. Strong billings and deferred revenue growth led the quarter and we continue to see customers adopt our new model subscription offerings, which are showing strong year-over-year and sequential growth. For the past two years we’ve been preparing for this transition and we’re now ready to accelerate the process.

Cash flow from operating activities was $77 million, compared to $96 million in the second quarter last year. On the books, the company had $1.47 billion in cash and cash equivalents compared to $1.41 billion in the same period last year.

After the earnings report was released, shares of Autodesk were halted until 4:20 p.m. Eastern.

Shares of Autodesk closed Thursday up 1.8%, at $50.00 on its 52-week trading range of $46.77 to $65.00. Following the release of the earnings report, shares were initially down nearly 8% at $46.12 in the after-hours trading session. The stock has a consensus analyst price target of $68.88.

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