Autodesk ADSK stunned onlookers by unveiling second-quarter fiscal 2025 non-GAAP earnings of $2.15 per share, exceeding the Zacks Consensus Estimate by 7.5% and marking a resounding 12.6% year-over-year surge.
Reports show revenues of $1.5 billion, surpassing consensus numbers by 1.54% and boasting an 11.9% year-over-year escalation. The illustrious firm displayed a panorama of impressive growth spanning products and regions in AEC and manufacturing, albeit marred by a dip in media and entertainment, attributed to the long shadow of the Hollywood strike.
Autodesk, Inc. Price, Consensus, and EPS Performance
Autodesk, Inc. price-consensus-eps-surprise-chart | Autodesk, Inc. Quote
Revealing Figures for Autodesk
Autodesk’s subscription revenues (93.6% of total revenues) soared by 10.9% year over year to a commanding $1.4 billion. Maintenance revenues (0.7% of total revenues) witnessed a 21.4% decline from the year-ago quarter, resting at $11 million. Other revenues (5.7% of total revenues) displayed remarkable growth at 41%, amounting to $86 million for the quarter.
Revolving revenues contributed a staggering 97% to Autodesk’s second-quarter fiscal 2025 revenues. The net revenue retention rate lingered within the company’s targeted 100-110% range, in constant currency terms.
Across regions, the Americas (44% of revenues) rung in a 12.4% increase from the year-ago quarter to amass $662 million. The EMEA sector, constituting 37.9% of revenues, scaled a 12.6% peak, clocking in at $570 million. Over in the Asia-Pacific (18.1% of revenues), a commendable 9.2% growth led to revenues hitting $273 million.
Billings, standing tall at $1.24 billion, showcased an impressive 13% year-over-year upswing.
Product Revenue Insights
Autodesk’s product lineup features four core families — Architecture, Engineering and Construction, AutoCAD and AutoCAD LT, Manufacturing, and Media and Entertainment (M&E).
AEC (47.4% of revenues) revenues were crowned with a majestic 13.7% year-over-year growth, reaching $713 million. AutoCAD and AutoCAD LT (25.8% of revenues) landed at a 6.9% growth milestone, amassing $389 million. MFG (19.7% of revenues) enjoyed a flourishing 15.6% revenue upsurge to settle at $296 million. M&E (5.1% of revenues) captured a 4.1% growth, reaching $77 million.
Operational Triumphs
Autodesk unveiled a non-GAAP operating income of $560 million, soaring above the clouds with a 14.5% year-over-year ascent.
Witnessing a monumental 1 percentage point rise, the non-GAAP operating margin stood valiantly at 37%.
Financial Landscape & Flow
As of July 31, 2024, Autodesk held cash and cash equivalents (including marketable securities) amounting to $1.87 billion, in contrast to $1.99 billion from the preceding quarter before.
Deferred revenues experienced a 13% decrease, settling at $3.69 billion. Unbilled deferred revenues signal an upsurge by $1.18 billion, perching at $2.17 billion. Remaining performance obligations (RPO) triumphed with a robust 12% climb, reaching $5.86 billion. Current RPO showcased an 11% rise to $3.9 billion.
Operating activities churned out $212 million worth of cash flow, marking a $77 million year-over-year climb. Meanwhile, free cash flow basked in the limelight, reaching $203 million, sporting a $75 million increase from the second quarter of fiscal 2024.
Fiscal Glimpse into 2025
For fiscal 2025, Autodesk laid out revenue projections spanning $6.08 billion to $6.13 billion, poised for approximately 11% growth. Billings are estimated to hit the $5.88-$5.98 billion bracket, signaling a 13-15% year-over-year stride.
Non-GAAP earnings per share are anticipated to dance between $8.18 and $8.31. A non-GAAP operating margin range of 35% to 36% is on the horizon.
Free cash flow is expected to grace the $1.45-$1.5 billion range.
Steering towards the third quarter of fiscal 2025, Autodesk anticipates revenues to sway between $1.555 billion and $1.57 billion. Non-GAAP earnings will dance within the range of $2.08-$2.14 per share.
Industry Rankings & Choices
Autodesk currently holds a Zacks Rank #3 (Hold). Shares of ADSK have yielded a 6.1% return year to date.
In the broader Computer and Technology sphere, stellar choices such as Arista Networks ANET, Badger Meter BMI, and Audioeye AEYE shine brightly with a Zacks Rank #1 (Strong Buy).
Arista Networks boasts an impressive 46.8% rally year-to-date, with a promising long-term earnings growth rate of 17.2%.
Meanwhile, Badger Meter has enjoyed a 32.5% uptick year-to-date, holding a prospective long-term earnings growth rate of 17.91%.
Audioeye’s shares have undergone an epic 342.6% surge year-to-date, portraying future earnings growth estimated at 25%.
