Why Autodesk Fell Flat in Q2

By Chris Lange Updated Jan 30, 4:53PM EST · Published Aug 27, 4:10PM EDT

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Why Autodesk Fell Flat in Q2 — © gonzalo_haro / iStock

Autodesk, Inc. (NASDAQ: ADSK | ADSK Price Prediction) is scheduled to release its fiscal second quarter financial results after the markets closed on Thursday. The firm said that it had $0.65 in earnings per share (EPS) and $796.8 million in revenue, compared with consensus estimates that called for $0.61 in EPS and $786.98 million in revenue. The same period from last year had $0.19 in EPS and $611.7 million in revenue.

During the quarter, total annualized recurring revenue (ARR) increased 31% to $3.07 billion as reported, and on a constant currency basis. Excluding fourth quarter acquisitions, total ARR increased 27% to $2.97 billion as reported, and 26% on a constant currency basis. On a sequential basis, total ARR increased 8% as reported, and 9% on a constant currency basis.

Total recurring revenue in the second quarter was 96% of total revenue, consistent with the second quarter last year.

Separately, total billings increased 48% year over year to $893 million.

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Looking ahead to the fiscal third quarter the company expects to see EPS in the range of $0.70 to $0.74 and revenue in the range of $820 million to $830 million. Consensus estimates are calling for $0.77 in EPS and $838.78 million in revenue for the coming quarter.

Andrew Anagnost, Autodesk president and CEO, commented:

We closed a solid first half of the year with a very strong second quarter as revenue, billings, earnings, and free cash flow came in ahead of expectations. ARR grew to a record $3.1 billion, driven by all parts of the business. Construction demonstrated continued strength with wins across all parts of the portfolio, and Fusion 360 – our design-to-manufacturing platform – continued to build momentum. We also made further strides in capturing opportunities within our non-paying user base. In an environment of increasing uncertainty, we believe we are well-positioned to achieve our FY23 goals.

Shares of Autodesk closed Tuesday at $150.21, with a 52-week range of $117.72 to $178.95. The consensus analyst price target is $188.73. Following the announcement, the stock was down about 8.5% at $137.50 in the after-hours session.

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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.