Autodesk Q3 2024 $ADSK (-0,12 %)

RevenueAutodesk generated revenue from subscription plans of USD 1.46 billion, an increase of 11% compared to the previous year (12% at constant exchange rates).

Net revenue retention rate: Remained in the range of 100% to 110% at constant exchange rates, demonstrating stable customer retention.

GAAP operating incomeIncreased to USD 346 million, compared to USD 334 million in the previous year.

Non-GAAP operating incomeImproved to USD 573 million compared to USD 547 million in the previous year.

Balance sheet overview

• Total assetsUSD 10,133 million as at October 31, 2024.
• Total liabilitiesUSD 7.517 million.
• Shareholders' equityUSD 2.616 million, which represents a solid financial basis.

Details of the profit and loss account

• GAAP operating marginWas 22%, a decrease of 2 percentage points compared to the previous year.
• Non-GAAP operating marginWas 36%, a decrease of 3 percentage points.
• GAAP earnings per share (diluted)1.27 USD, compared to 1.12 USD in the prior year.
• Non-GAAP earnings per share (diluted)USD 2.17, compared to USD 2.07.

Cash flow overview

• Cash flow from operating activitiesStrong increase to USD 209 million, an increase of USD 191 million compared to the previous year.
• Free cash flowIncreased to USD 199 million, an increase of USD 186 million.

Key figures and profitability metrics

• GAAP operating margin: 22%, reflecting slightly higher investments.
• Non-GAAP operating margin36 %, which shows continued high profitability despite the decline.

Segment information

• Sales by product family:
• AEC751 million USD (+11 % YoY).
• MFG307 million USD (+14 % YoY).
• AutoCAD and AutoCAD LT: USD 285 million (+10 % YoY).
• Sales by region:
• APAC398 million USD (+7 % YoY).
• EMEA580 million USD (+12 % YoY).
• Americas705 million USD (+10 % YoY).

Competitive position

Autodesk remains a leading player in industries with strong structural growth. The focus on digital transformation in architecture, engineering and construction (AEC) and the transition to cloud solutions in the manufacturing and media sectors strengthen the company's competitiveness.

Forecasts and comments from management

• Forecast for Q4 FY25 revenueExpected between USD 1.623 million and USD 1.638 million.
• Forecast for FY25 salesExpected between USD 5,900 million and USD 5,980 million, representing growth of 14% to 15% YoY.
• Non-GAAP operating margin for FY25Expected at 35.5% to 36%.

Risks and opportunities

• Risks: The company faces uncertainties due to global economic conditions, geopolitical tensions and possible challenges with strategic acquisitions.
• OpportunitiesAutodesk has the potential to expand its addressable market through comprehensive end-to-end solutions and the promotion of digital and cloud-based transformations.

Positive aspects

Double-digit growth in annual revenue.

Significant increase in subscription revenue.

Non-GAAP operating margins increased by approximately 300 basis points since FY23.

Substantial increase in free cash flow.

Successful strategic initiatives in the areas of digital transformation and cloud adaptation.

Negative aspects

GAAP operating margin down by 2 percentage points.

Non-GAAP operating margin down by 3 percentage points.

Deferred revenue down 9%.

Uncertainty in forecasting subscription renewals.

High exposure to international regulatory and economic risks that could impact long-term stability.