Autodesk’s shares tank after Q1 results miss expectations

Autodesk Inc. (NASDAQ: ADSK) missed market estimates on both revenue and earnings for the first quarter of 2020, sending shares sliding nearly 9% in after-market hours on Thursday.  

Total revenue of $735 million was up 31% on a reported basis and 30% on a constant currency basis versus last year, but fell short of the consensus estimate of $740 million.   

GAAP net loss was $24.2 million, or $0.11 per share, compared to $82.4 million, or $0.38 per share, in the prior-year quarter. Adjusted EPS totaled $0.45, missing the forecast of $0.46.   

Total annualized recurring revenue (ARR) was $2.83 billion, up 33% year-over-year on a reported basis, and 32% on a constant currency basis. Subscription plan ARR totaled $2.38 billion, up 70% as reported and 69% in constant currency. Maintenance plan ARR was $448 million, down 38% as reported and 40% in constant currency. Core ARR increased 29% while cloud ARR jumped 164%.

Total deferred revenue, which is defined as deferred revenue plus unbilled deferred revenue, grew 24% to $2.74 billion on a year-over-year basis. Billings totaled $798 million.

For the second quarter of 2020, Autodesk expects revenue to be $782 million to $792 million. GAAP EPS is expected to be $0.13-0.17 while adjusted EPS is expected to be $0.59-0.63.  

For fiscal-year 2020, revenue is expected to grow 26-28% to $3.25-3.30 billion. GAAP EPS is projected to be $0.83 to $1.02, while non-GAAP EPS is estimated to be $2.71 to $2.90. Total ARR is expected to grow 27-29% to $3.50-3.55 billion while billings are expected to increase 50-53% to $4.05-4.15 billion.

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