Autodesk, Inc. (NASDAQ:ADSK) Q2 2025 Earnings Conference Call August 29, 2024 5:00 PM ET Company Participants Simon Mays-Smith - VP, IR Andrew Anagnost - CEO Betsy Rafael - Interim CFO Conference Call Participants Saket Kalia - Barclays Jay Vleeschhouwer - Griffin Securities Adam Borg - Stifel Jason Celino - KeyBanc Capital Markets Elizabeth Porter - Morgan Stanley Joe Vruwink - Baird Ken Wong - Oppenheimer & Co Tyler Radke - Citigroup Operator Good day, and thank you for standing by. Welcome to the Q2 Fisc ...

Autodesk (ADSK) reported $1.51 billion in revenue for the quarter ended July 2024, representing a year-over-year increase of 11.9%. EPS of $2.15 for the same period compares to $1.91 a year ago.The reported revenue represents a surprise of +1.54% over the Zacks Consensus Estimate of $1.48 billion. With the consensus EPS estimate being $2.00, the EPS surprise was +7.50%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expe ...

Autodesk (ADSK) came out with quarterly earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2 per share. This compares to earnings of $1.91 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.50%. A quarter ago, it was expected that this design software company would post earnings of $1.78 per share when it actually produced earnings of $1.87, delivering a surprise of 5.06%.Over the last four quarters, the comp ...

Second quarter fiscal 2025 earnings August 29, 2024 Safe harbor 2 This presentation contains forward looking statements about revenue, billings, free cash flow, operating margin, EPS, products, future performance, financial and otherwise, and strategy, including statements regarding our progress on our key priorities, business models, guidance for the third fiscal quarter and full fiscal year 2025, and our longterm financial objectives. There are a significant number of factors that could cause actual resul ...

Revenue Growth - Total revenue for Q2 FY2025 increased by 12% to $1.51 billion, with a 13% increase at constant exchange rates [2]. - Total billings rose by 13% to $1.24 billion, reflecting strong demand across products and regions [4]. - Recurring revenue accounted for 97% of total revenue, indicating a stable revenue base [4]. - Design revenue grew by 9% to $1.26 billion, while Make revenue surged by 25% to $162 million [4]. - Total net revenue for Q2 2024 was $1,505 million, up from $1,345 million in Q2 2023, representing a 11.9% year-over-year increase [36]. - Subscription revenue reached $1,408 million in Q2 2024, compared to $1,270 million in Q2 2023, marking a 10.9% increase [36]. - FY2025 revenue guidance is projected between $6,080 million and $6,130 million, reflecting an approximate 11% increase [13]. Profitability Metrics - GAAP operating margin improved by 4 percentage points to 23%, while non-GAAP operating margin increased by 1 percentage point to 37% [5]. - Net income for the six months ended July 31, 2024, was $534 million, up from $383 million in the same period of 2023, reflecting a 39.4% increase [40]. - Basic net income per share for Q2 2024 was $1.31, up from $1.04 in Q2 2023, representing a 26% increase [36]. - GAAP income from operations rose to $343 million in Q2 2024, compared to $262 million in Q2 2023 [46]. - Non-GAAP income from operations for Q2 2024 was $560 million, up from $489 million in Q2 2023 [46]. - Non-GAAP diluted net income per share increased to $2.15 in Q2 2024, compared to $1.91 in Q2 2023 [48]. Cash Flow and Financial Position - Cash flow from operating activities was $212 million, an increase of $77 million, and free cash flow reached $203 million, up $75 million [5]. - Net cash provided by operating activities was $212 million in Q2 2024, compared to $135 million in Q2 2023 [48]. - Free cash flow for Q2 2024 was $203 million, up from $128 million in Q2 2023 [48]. - Cash and cash equivalents decreased to $1,513 million as of July 31, 2024, down from $1,892 million at the beginning of the period [38]. - The company’s total assets increased slightly to $9,960 million as of July 31, 2024, compared to $9,912 million at the end of January 2024 [38]. Performance Obligations and Deferred Revenue - Current remaining performance obligations (RPO) increased by 11% year over year to $3.90 billion [5]. - Deferred revenue stood at $3,228 million as of July 31, 2024, down from $3,500 million at the end of January 2024 [38]. Operating Expenses and Investments - Operating expenses totaled $1,022 million in Q2 2024, compared to $956 million in Q2 2023, indicating a 6.9% increase [36]. - Autodesk's investment in business combinations for the six months ended July 31, 2024, was $801 million, significantly higher than $26 million in the same period of 2023 [40]. - Stock-based compensation expense decreased to 11% of revenue in Q2 2024 from 15% in Q2 2023 [46]. - Capital expenditures remained stable at $9 million in Q2 2024, the same as in Q2 2023 [48]. - Acquisition-related costs increased to $13 million in Q2 2024 from $2 million in Q2 2023 [46].

Autodesk (ADSK) , a leader in 3D design software, is scheduled to report second-quarter fiscal 2025 results on Aug. 29.The company anticipates revenues between $1.475 billion and $1.49 billion for the fiscal second quarter. The Zacks Consensus Estimate for the same is pegged at $1.48 billion, suggesting growth of 10.2% from the year-ago quarter.Autodesk projects non-GAAP earnings in the band of $1.98-$2.04 per share. The Zacks Consensus Estimate for the same is pegged at $2 per share, unchanged over the pas ...

Core Viewpoint - Autodesk is a software platform for 3D design across various industries, but it has underperformed compared to the S&P 500 and Nasdaq 100 year-to-date. The company is expected to report Q2 FY25 earnings with revenue growth of 10% and non-GAAP EPS growth of 5% year-over-year, while facing pressure from activist investors for management changes and improved margins [2][8]. Financial Performance - In Q1 FY25, Autodesk reported revenue of $1.42 billion, a 12% year-over-year increase, with subscription revenue constituting nearly 94% of total revenue. The AEC segment accounted for approximately 48% of total revenue, growing at 16% year-over-year, while other segments grew at slower rates [3][4]. - The company generated $490 million in non-GAAP operating income in Q1 FY25, reflecting a 21% year-over-year increase and a margin expansion of 300 basis points. Operating expenses grew only 6%, allowing for operating leverage [5]. Strategic Initiatives - Autodesk is implementing a new transaction model aimed at enhancing customer relationships and streamlining sales processes. This model has led to a 20% year-over-year growth in direct revenue, which now represents 38% of total revenue [4][5]. - The company is focusing on product innovation through its GenAI initiative, Project Bernini, which aims to automate low-value tasks and improve design efficiency [5]. Management and Governance Issues - Activist investor Starboard, holding a $500 million stake, is urging significant changes in Autodesk's management, including the potential removal of CEO Andrew Anagnost, due to concerns over misleading sales tactics and poor financial performance [6][10]. - Recent accounting issues have raised concerns about the company's governance practices, with a review of processes related to free cash flow and operating margins initiated after delays in financial disclosures [6]. Future Outlook - Autodesk is projected to achieve total revenue of $1.48 billion in Q2 FY25, with a full-year revenue target of $6.05 billion, reflecting a 10% growth rate. The new transaction model is expected to provide a 1-percentage point tailwind to revenue growth [8]. - The company anticipates non-GAAP operating margins of 35-36% for FY25, although the transition to the new transaction model may create short-term accounting challenges [8]. Valuation and Market Sentiment - Consensus estimates suggest Autodesk could generate approximately $7.5 billion in revenue over the next three years, with non-GAAP EPS projected to grow at a faster rate than revenue. The current price target based on valuation models indicates a potential downside of about 10% from current levels [9][10]. - Despite a majority of Wall Street analysts rating the stock as a "buy," uncertainties surrounding management practices and governance issues lead to a cautious stance on initiating new positions [10].

In its upcoming report, Autodesk (ADSK) is predicted by Wall Street analysts to post quarterly earnings of $2 per share, reflecting an increase of 4.7% compared to the same period last year. Revenues are forecasted to be $1.48 billion, representing a year-over-year increase of 10.2%.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this ...

In the latest trading session, Autodesk (ADSK) closed at $250.13, marking a -0.39% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.2%. On the other hand, the Dow registered a loss of 0.15%, and the technology-centric Nasdaq decreased by 0.34%.The design software company's stock has climbed by 2.39% in the past month, exceeding the Computer and Technology sector's gain of 0.96% and the S&P 500's gain of 1.93%.Analysts and investors alike will be keeping a close ey ...

Industry Overview - The 3D printing industry, also known as additive manufacturing, is expected to grow significantly, potentially reaching nearly $45 billion globally by 2027 according to a report by Hubs [1] Company Analysis Autodesk (ADSK) - Autodesk is a CAD software maker based in San Francisco, providing solutions for construction, engineering, manufacturing, media, and automotive industries [2] - The flagship product, AutoCAD, allows businesses to create detailed 2D and 3D designs more efficiently [2] - Autodesk Fusion is a 3D printing software that supports industries such as healthcare, aerospace, and architecture, enabling the design of custom prosthetics and lightweight components for airplanes [2][3] Protolabs (PRLB) - Protolabs began by designing software for rapid production of injection-molded plastic prototypes and expanded into 3D printing in 2014 [4] - The company operates over 120 3D printers and serves over 50,000 customers, focusing on aerospace, medical, consumer electronics, and robotics [4] - Protolabs provides 3D-printed parts for aviation, medical imaging devices, and robotics, enhancing efficiency in these sectors [4] HP (HPQ) - HP offers a range of 3D printers, including the HP Jet Fusion 5600 Series and S100 3D Printing Solution, aimed at improving productivity and reducing costs in various industries [5] - The company's 3D printing technology is utilized in robotics, agriculture, and housing, with notable applications in John Deere factories for producing tools and fixtures [5] - HP's technology allows for the design of lightweight, custom parts for robotics, enhancing the capabilities of modern robotic systems [5]