Categories AlphaGraphs, Earnings, Technology

Autodesk swings to profit in Q4, beats estimates

Autodesk (ADSK) swung to a profit in the fourth quarter from a loss last year, helped by its core design offerings and cloud-based solutions for construction, manufacturing, and production. The results exceeded analysts’ expectations. However, the design software company guided earnings for the first quarter and full year 2020 below the consensus estimates.

Net income was $64.7 million or $0.29 per share, compared to a loss of $173.5 million or $0.79 per share in the previous year quarter. Adjusted earnings were $0.46 per share compared to a loss of $0.09 per share a year ago.

Revenue grew by 33% to $737 million. On a constant currency basis, revenue climbed by 31%. Included in revenue was a $7 million contribution from the fourth quarter acquisitions or 1 percentage point of the increase.

Looking ahead into the first quarter, the company expects revenue in the range of $735 million to $745 million and earnings in the range of $0.06 to $0.10 per share. Adjusted earnings are anticipated to be in the range of $0.44 to $0.48 per share.

Autodesk fourth quarter 2019 earnings snapshot
Autodesk Q4 2019 Earnings Infographic

For the full year 2020, Autodesk predicts revenue in the range of $3.25 billion to $3.30 billion and earnings in the range of $1.12 to $1.31 per share. Adjusted earnings are anticipated to be in the range of $2.71 to $2.90 per share.

The company expects total annualized recurring revenue (ARR) to grow 27% to 29% to the range of $3.50 billion to $3.55 billion. Billings are anticipated to grow by the range of 50% to 53% to the range of $4.05 billion to $4.15 billion. Free cash flow is predicted to be about $1.35 billion.

For the fourth quarter, total annualized recurring revenue (ARR) grew by 34% to $2.75 billion helped by 87% jump in subscription plan ARR. Total subscriptions increased by 16.4% to 4.33 million at the end of the fourth quarter. Deferred revenue rose by 7% to $2.09 billion. Billings jumped by 39% to $1.04 billion.

“Fiscal 2019 was a year of solid execution as we accomplished multiple financial milestones that have positioned us well to keep driving growth in fiscal 2020 and beyond. We’re exiting the business model transition with a much more predictable business at 95% recurring revenue and feel confident about our free cash flow goal for fiscal 2020,” finance chief Scott Herren said.

Revenue in the Americas grew by 29% year-over-year while that in EMEA jumped by 35%. Revenue in APAC climbed by 38% compared to the previous year quarter.

Shares of Autodesk ended Thursday’s regular session down 0.77% at $163.01 on the Nasdaq. The stock has risen over 38% in the past year and over 12% in the past three months.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Cost reduction has become a priority for FedEx (FDX) after a challenging quarter

Shares of FedEx Corporation (NYSE: FDX) were up 1% on Tuesday. The stock has dropped 44% year-to-date and 34% over the past 12 months. The company delivered mixed results for

Prime Medicine is the next big biotech to pursue IPO. Here’s all you need to know

After a soft start to the year, the IPO market has witnessed muted activity so far though a few big companies entered the stock market. On the heels of AIG

Stock Watch: Is Darden Restaurants a good buy after earnings?

After a prolonged slowdown, the restaurant industry is returning to normal patterns but macroeconomic uncertainties and high inflation are currently playing spoilsport for it. While the pandemic-related slump forced many

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top