Autodesk Inc (ADSK) Reports Steady Growth Amid Economic Headwinds
Revenue Growth: Q4 revenue increased by 11% to $1.47 billion, and 14% at constant exchange rates.
Earnings Per Share (EPS): GAAP diluted EPS at $1.31 and Non-GAAP diluted EPS at $2.09 for Q4.
Operating Margin: Maintained at 21% for GAAP and 36% for Non-GAAP in Q4.
Free Cash Flow: Q4 free cash flow was $427 million, despite a decrease from the previous year.
Subscription Growth: Total subscriptions increased by approximately 785 thousand from the end of fiscal 2023.
Future Outlook: Revenue expected to grow more than 10% in fiscal 2025, excluding certain adjustments.
On February 29, 2024, Autodesk Inc (NASDAQ:ADSK) released its 8-K filing, announcing its fourth quarter and full-year financial results for fiscal 2024. Autodesk, a leader in application software for design and engineering, reported an 11% increase in fourth-quarter revenue, reaching $1.5 billion, and a 14% increase at constant exchange rates. The company's current remaining performance obligations grew to $4.0 billion, marking a 13% rise. Autodesk's consistent performance underscores its resilience in a challenging economic environment and its commitment to innovation and customer success.
Financial Performance and Strategic Initiatives
Autodesk's fourth-quarter revenue growth was driven by a 10% increase in Design revenue and a significant 16% increase in Make revenue. Subscription plan revenue also saw a 10% rise, indicating a strong customer base and recurring revenue model. The company's net revenue retention rate remained healthy, within the 100 to 110 percent range on a constant currency basis.
President and CEO Andrew Anagnost highlighted Autodesk's strategic focus on developing lifecycle solutions and generative AI, which are expected to drive future growth and efficiency for the company and its customers. CFO Debbie Clifford noted the company's robust underlying demand for its products and services, which contributed to the revenue growth.
We are undertaking a multi-year process to develop lifecycle solutions, powered by shared platform services, and with Autodesks Data Model at its core. Together, these will enable Autodesk, its customers, and partners, to create more valuable, data-driven, and connected products and services," said Andrew Anagnost, Autodesk president and CEO.
Challenges and Outlook
Despite the positive revenue growth, Autodesk faced challenges such as a 19% decrease in total billings and a decline in free cash flow compared to the previous year. The company's deferred revenue also decreased by 7% to $4.26 billion. However, unbilled deferred revenue increased significantly, suggesting a strong pipeline of future revenue.
Looking ahead, Autodesk provided a positive business outlook for fiscal 2025, with revenue expected to grow between 9% to 11%, and billings projected to increase by 12% to 15%. The company anticipates a GAAP operating margin of 20% to 21% and a non-GAAP operating margin of 35% to 36%.
Geographic and Product Family Breakdown
Autodesk's revenue growth was broad-based across geographic regions, with the Americas leading the way with a 19% increase. The company's product families also experienced growth, with the AEC product family showing a notable 16% increase in the fourth quarter.
Founded in 1982, Autodesk serves a diverse range of industries with over 4 million paid subscribers in 180 countries. Its software solutions are crucial for the architecture, engineering, construction, product design, manufacturing, and media and entertainment sectors.
As Autodesk continues to navigate the global economic landscape, its focus on innovation and customer-centric solutions positions it well for sustained growth. Investors and stakeholders can look forward to the company's strategic initiatives bearing fruit in the coming fiscal year.
For a detailed analysis of Autodesk Inc (NASDAQ:ADSK)'s financial results and future expectations, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Autodesk Inc for further details.
This article first appeared on GuruFocus.
