Weak Outlook
However, once again Autodesk disappointed in terms of
guidance. For the Q4 period, Autodesk is expecting revenue in the range of $880
million – $895 million and adjusted EPS of 86 to 91 cents. The fell shy
of what the street was anticipating.
For the full year, the company projected a 27% jump in revenues to a range of $3.25 billion to $3.27 billion. Adjusted EPS is forecast between $2.74 and $2.79.
The weak guidance sent the stock tanking 5.4% during after
market hours on Thursday.
Autodesk decided to transition from a licensing-based business model towards a software-as-a-service model in 2016. As a follow-up to the transition, the company launched maintenance-to-subscription (M2S) program in 2017, which helps its existing clients to convert from the licensing model to SaaS plan.
In the past two years, the company has converted 875,000
customers to SaaS offering and plans to move the remaining 689,000 in the near
future.
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