Why Autodesk Is Friday's Big Earnings Winner

Technology

Published: August 24, 2018 9:10 am

Last Updated: January 11, 2020 6:52 pm

When Autodesk Inc. (NASDAQ: ADSK) reported its most recent quarterly results after the markets closed on Thursday, The company said that it had $0.19 in earnings per share (EPS) and $611.7 million in revenue. The consensus estimates had called for $0.17 in EPS and revenue of $601 million. The same period of last year reportedly had a net loss of $0.11 per share and $501.8 million in revenue.

During the latest quarter, subscription plan annual recurring revenue (ARR) was $1.68 billion, an increase of 115% compared to the second quarter last year as reported, and 111% on a constant currency basis. Subscription plan subscriptions increased 290,000 from the first quarter of fiscal 2019 to 2.86 million at the end of the second quarter.

Total ARR was $2.35 billion, an increase of 28% compared to the second quarter last year as reported, and 27% on a constant currency basis.

Deferred revenue was $1.80 billion, an increase of 1% compared to the second quarter last year. Total deferred revenue (deferred revenue plus unbilled deferred revenue) was $2.21 billion, an increase of about 20% compared to the second quarter last year.

Looking ahead to the fiscal third quarter, the company expects to see EPS in the range of $0.24 to $0.28 and revenues between $635 million and $645 million. Consensus estimates call for $0.28 in EPS and $634.2 million in revenue.

Andrew Anagnost, Autodesk president and CEO, commented:

Broad-based strength in customer demand and continued execution across our business helped accelerate growth in ARR and annualized revenue per subscription (ARPS). A superior user experience is motivating new customers to turn to Autodesk subscription and cloud offerings, and we continue to see a steady stream of existing maintenance customers migrating to subscription.

Shares of Autodesk closed Thursday at $136.31, with a consensus analyst price target of $153.77 and a 52-week range of $101.55 to $142.94. Following the announcement, the stock was up about 10% at $150.67 in early trading indications Friday.