Yahoo Finance

• Total Revenue Growth: 15% as reported, 16% in constant currency.

• New Transaction Model Revenue Contribution: $78 million in Q1.

• Billings Growth: 29% as reported, 30% in constant currency.

• New Transaction Model Billings Contribution: $105 million in Q1.

• Remaining Performance Obligations (RPO): $7.2 billion, up 21%.

• Current Annualized Recurring Revenue (ARPU): $4.6 billion, up 16%.

• GAAP Operating Margin: 14%, decreased by 7 percentage points due to restructuring charges.

• Non-GAAP Operating Margin: 37%, increased by 3 percentage points.

• Free Cash Flow: $556 million in Q1.

• Share Repurchases: Approximately 1.3 million shares for $353 million at an average price of $269 per share.

• Revenue Guidance Range for Fiscal '26: $6.925 billion to $6.995 billion.

• Billings Guidance Range for Fiscal '26: $7.16 billion to $7.31 billion.

• Free Cash Flow Guidance Range for Fiscal '26: $2.1 billion to $2.2 billion.

• Warning! GuruFocus has detected 2 Warning Sign with PLUS.

Release Date: May 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Autodesk Inc (NASDAQ:ADSK) delivered strong first-quarter results, with revenue and non-GAAP earnings per share exceeding the higher end of guidance ranges.

• The company saw a 15% increase in total revenue as reported and 16% in constant currency, driven by the new transaction model and strong performance in AECO and the Autodesk store.

• Billings increased by 29% as reported and 30% in constant currency, reflecting the shift to annual billings for most multi-year contracts.

• Non-GAAP operating margins increased by 3 percentage points due to operating leverage from ongoing cost discipline and timing benefits from restructuring.

• Autodesk Inc (NASDAQ:ADSK) is focusing on strategic growth investments in cloud, platform, and AI, which are expected to drive long-term shareholder value.

Negative Points

• GAAP operating margins decreased by 7 percentage points, primarily due to restructuring charges and a one-time non-cash charge related to stock-based compensation.

• The company is facing uncertainty due to geopolitical and macroeconomic factors, which could impact customer bidding processes and material costs.

• There is a potential risk of disruption from ongoing sales and marketing optimization and the transition to a new Chief Revenue Officer.

• The Asia Pacific region showed some softness, particularly in Japan, China, and Korea, due to macroeconomic turmoil and trade discussions.

• The transition to the new transaction model is still ongoing, with channel partners adapting and onboarding their long tail of customers.