Earnings preview: What to look for when Autodesk reports Q1 2020 results

Autodesk Inc. (NASDAQ: ADSK) is scheduled to report first-quarter 2020 earnings results on Thursday, May 23, after market close. Analysts expect earnings of $0.46 per share on revenue of $740.7 million.

Autodesk has been investing significantly in its advanced manufacturing solutions and updates on this will be an interesting area to watch. The company’s subscription-based licensing model has been a significant driver of growth. In fiscal 2019, Autodesk’s total subscriptions amounted to 4.3 million, and subscription revenue made up 75% of total revenues.

Autodesk is also expected to benefit from the adoption of its BIM 360 products as well as its recent acquisitions. However, higher costs are likely to weigh on the bottom line for the first quarter. Any updates on the company’s future investment plans would also be worth watching.

In the fourth quarter of 2019, Autodesk topped earnings estimates with a profit of $0.46 per share versus a loss of $0.09 per share in the previous year. Revenue grew 33% to $737 million. Total annualized recurring revenue (ARR) grew by 34% while billings rose by 39%. Total subscriptions increased by 16.4% to 4.3 million.

For the first quarter of 2020, Autodesk expects revenue to be $735 million to $745 million. GAAP EPS is expected to be $0.06-0.10 and adjusted EPS is expected to be $0.44-0.48.

For fiscal-year 2020, revenue is expected to grow 26-28% to $3.25-3.30 billion. GAAP EPS is projected to come between $1.12 and $1.31, while non-GAAP EPS is estimated to be $2.71-2.90. Total ARR is expected to be up 27-29% to hit $3.50-3.55 billion while billings are estimated to surge 50-53% to reach $4.05-4.15 billion.

Autodesk’s shares have gained 33% so far this year and 22% in the trailing 52 weeks. The stock was down 2.2% in afternoon hours on Monday.

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