Autodesk Q2 Earnings and Sales Surpass Estimates, Improve Y/Y

Core Insights - Autodesk reported second-quarter fiscal 2025 non-GAAP earnings of $2.15 per share, exceeding the Zacks Consensus Estimate by 7.5% and showing a year-over-year improvement of 12.6% [1] - The company achieved revenues of $1.5 billion, surpassing the consensus mark by 1.54% and reflecting an 11.9% year-over-year growth [1] Revenue Breakdown - Subscription revenues, which constitute 93.6% of total revenues, rose 10.9% year over year to $1.4 billion [2] - Maintenance revenues decreased 21.4% from the previous year to $11 million, while other revenues increased by 41% to $86 million [2] - Recurring revenues accounted for 97% of total revenues, with a net revenue retention rate within the targeted range of 100-110% on a constant currency basis [2] Regional Performance - Revenues from the Americas, making up 44% of total revenues, increased 12.4% year over year to $662 million [2] - EMEA revenues, representing 37.9% of total revenues, climbed 12.6% to $570 million [2] - Asia-Pacific revenues, accounting for 18.1% of total revenues, grew 9.2% to $273 million [2] Product Performance - AEC revenues, which represent 47.4% of total revenues, increased 13.7% year over year to $713 million [3] - AutoCAD and AutoCAD LT revenues rose 6.9% to $389 million, while Manufacturing revenues increased 15.6% to $296 million [3] - Media and Entertainment revenues grew 4.1% to $77 million [3] Operating Results - Non-GAAP operating income was reported at $560 million, reflecting a year-over-year increase of 14.5% [4] - The non-GAAP operating margin improved to 37%, up 1 percentage point from the previous year [4] Balance Sheet & Cash Flow - As of July 31, 2024, Autodesk had cash and cash equivalents of $1.87 billion, down from $1.99 billion as of April 30, 2024 [5] - Deferred revenues decreased 13% to $3.69 billion, while unbilled deferred revenues increased by $1.18 billion year over year to $2.17 billion [5] - Cash flow from operating activities was $212 million, an increase of $77 million compared to the previous year, with free cash flow rising to $203 million [5] Fiscal 2025 Guidance - Autodesk projects fiscal 2025 revenues between $6.08 billion and $6.13 billion, indicating approximately 11% growth [6] - Billings are estimated to be in the range of $5.88 billion to $5.98 billion, suggesting a year-over-year increase of 13-15% [6] - Non-GAAP earnings per share are expected to be between $8.18 and $8.31, with a non-GAAP operating margin projected between 35% and 36% [7]