Autodesk Inc (NASDAQ:ADSK) and MongoDB Inc (NASDAQ:MDB) are enjoying post-earnings tailwinds this morning. Both software companies reported top- and bottom-line wins for the second quarter, and also raised their annual revenue and profit forecasts.Last seen up 4.4% at $269.69, ADSK attracted no fewer than 13 price-target hikes this morning, with Morgan Stanley and Stifel adjusting their objectives to $320 from $305 and $290, respectively. Shares are trading at their highest level since March, and are on tra ...

Autodesk, Inc. ADSK posted better-than-expected second-quarter EPS and revenues on Thursday.Autodesk reported quarterly earnings of $2.15 per share which beat the analyst consensus estimate of $2.00 per share. The company reported quarterly sales of $1.50 billion which beat the analyst consensus estimate of $1.48 billion."Autodesk continues to generate strong and sustained momentum both in absolute terms and relative to peers," said Andrew Anagnost, president and CEO of Autodesk. "Our success is fueled by o ...

SAN FRANCISCO, Aug. 30, 2024 /PRNewswire/ -- Autodesk, Inc. (NASDAQ: ADSK) today announced its executives will be speaking at the following investor conferences:September 5, 2024       Citi 2024 Global TMT ConferenceSeptember 11, 2024     Goldman Sachs Communacopia & Technology ConferenceA live webcast and replay of the presentations will be available through Autodesk's Investor Relations Website at investors.autodesk.com. Please go to the website 15 minutes early to register, download and install any neces ...

Financial Data and Key Metrics Changes - Autodesk reported a 12% revenue growth and 13% growth in constant currency for Q2 2025, with a strong performance in both the second quarter and the first half of the year [6][20] - Total deferred revenue decreased by 13% to $3.7 billion, impacted by the transition from upfront to annual billings for multi-year contracts [21] - Free cash flow for the quarter was $203 million, with some channel partners booking business earlier in the quarter [22] Business Line Data and Key Metrics Changes - AEC revenue grew by 15%, manufacturing revenue increased by 17%, while media and entertainment (M&E) revenue grew by 5% [20][13] - Direct revenue increased by 21%, representing 40% of total revenue, up 3 percentage points from the previous year [20] - The new transaction model did not materially contribute to Q2 results but is expected to provide a tailwind in the future [13][24] Market Data and Key Metrics Changes - The company experienced strong renewal rates but faced softness in new business in China and Korea [13] - Revenue grew by 13% in all regions on a constant currency basis, indicating broad-based growth across products and regions [20] - The underlying momentum of the business remains consistent, with increased product usage and record bid activity [9] Company Strategy and Development Direction - Autodesk is aggressively pursuing growth opportunities through investments in cloud, platform, and AI technologies [8] - The company aims to modernize its go-to-market approach to create more durable and direct relationships with customers [9] - The transition to the new transaction model is expected to enhance sales and marketing efficiency and deliver industry-leading GAAP margins [10][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to create shareholder value despite macroeconomic challenges [46] - The company raised its guidance for billings, revenue, earnings per share, and free cash flow for the full year, reflecting sustained momentum [25][26] - Management noted that the transition to annual billing for multi-year contracts will provide a natural tailwind to revenue and free cash flow over the next few years [29] Other Important Information - Autodesk's construction business is seeing strong momentum, particularly in infrastructure and construction sectors [31] - The company has been named the Official Design and Make platform for the LA28 Olympic and Paralympic Games, highlighting its role in significant projects [43][44] - The search for a new CFO is progressing well, with excellent candidates being considered [44] Q&A Session Summary Question: Thoughts on Starboard Value's recent letters - Management acknowledged alignment with Starboard on the potential for creating more shareholder value and highlighted the strong results delivered in a tough environment [46][49] Question: Insights on Autodesk Construction Cloud - Management noted strong momentum in the construction business, driven by a large backlog and a competitive value proposition [50][52] Question: Division of labor under the new model - Management discussed opportunities for efficiencies and productivity improvements in sales and marketing under the new transaction model [56][57] Question: Impact of co-terming on billings - Management explained that co-terming creates efficiencies in the renewal process, which is beneficial despite some short-term impacts on billings [58][59] Question: Confidence in the rollout of the new transaction model - Management expressed confidence in the successful rollout of the new transaction model in Europe and Japan, based on positive experiences in North America [61][62] Question: Demand environment ahead of US elections - Management indicated that the issues affecting customers are bipartisan, suggesting little impact on decision-making processes [66] Question: Performance and margin improvements - Management confirmed that underlying margin improvements were intentional, despite absorbing headwinds from transitions [70][71] Question: Pricing environment and discounting behavior - Management stated that the new transaction model allows for better control over pricing and discounting, benefiting partners [74][75] Question: New business trends in the quarter - Management noted resilience in the business, with AEC and manufacturing performing well, while media and entertainment faced challenges [78][79]

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 ...

Financial Performance - Autodesk's Q2 FY25 total revenue reached $1.51 billion[6] - The company's free cash flow for Q2 FY25 was $203 million[6] - Autodesk's non-GAAP operating margin for Q2 FY25 was 37%[6] - Autodesk expects to deliver $2.05 billion of free cash flow at the midpoint in FY26[10] Revenue Breakdown - Revenue in the Americas was $713 million, up 14% year-over-year[8] - Revenue in APAC was $273 million, up 9% year-over-year[8] - Revenue in EMEA was $570 million, up 13% year-over-year[8] FY25 Outlook - Autodesk anticipates FY25 revenue between $6.08 billion and $6.13 billion, representing approximately 11% growth[15] - The company projects FY25 free cash flow between $1.45 billion and $1.50 billion[15] - Autodesk expects FY25 non-GAAP operating margin to be around 39%, excluding FX and new transaction model impacts[11]

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].