Autodesk Posts Solid Win For Q3 Report

By Chris Lange Updated Jan 11, 2:37PM EST · Published Nov 21, 9:56AM EST

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Autodesk Posts Solid Win For Q3 Report — © NicoElNino / Getty Images

Autodesk, Inc. (NASDAQ: ADSK) released fiscal third quarter financial results after markets closed Tuesday. The firm said that it had $0.29 in earnings per share (EPS) and $660.9 million in revenue, which compares with consensus estimates that are calling for $0.26 in EPS and $642.3 million in revenue. The same period from last year had a net loss of $0.12 per share and $515.3 million in revenue.

During the quarter, total annual recurring revenue (ARR) was $2.53 billion, an increase of 33% compared to the third quarter last year as reported, and 31% on a constant currency basis. Under the prior revenue accounting standard, total ARR was $2.49 billion, an increase of 31%.

Subscription plan ARR was $1.93 billion, an increase of 108%. Also, total subscriptions increased 143,000 from the second quarter of fiscal 2019 to 4.08 million at the end of the third quarter.

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Deferred revenue was $1.79 billion, an increase of 2% for the quarter. Separately, total deferred revenue (deferred revenue plus unbilled deferred revenue) was $2.24 billion, an increase of approximately 17%.

Looking ahead to the fourth quarter, the company expects to see EPS in the range of $0.40 to $0.44 and revenue in the range of $700 million to $710 million. Consensus estimates are calling for $688.87 million in revenue for the coming quarter.

Scott Herren, Autodesk CFO, commented:

Subscription plan now represents over 75 percent of our ARR base, driven by continued demand for our offerings and a steady stream of existing maintenance customers migrating to product subscription. We also achieved another major milestone in our business model transition by ending the quarter with over 4 million active subscriptions. We’re pleased with our consistent performance and are confident in our ability to drive strong operating results as we close out the fiscal year, which leaves us well-positioned to achieve our fiscal 2020 goals.

Shares of Autodesk were last seen up about 11% at $136.89, with a consensus analyst price target of $166.45 and a 52-week range of $101.55 to $159.94.

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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.