Why Autodesk Is Friday’s Big Earnings Winner

By Chris Lange Updated Jan 11, 6:52PM EST · Published Aug 24, 9:10AM EDT

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Why Autodesk Is Friday’s Big Earnings Winner — © Thinkstock

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.

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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.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.