Q1 Design Software Earnings: Autodesk (NASDAQ:ADSK) Earns Top Marks
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The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how design software stocks fared in Q1, starting with Autodesk (NASDAQ:ADSK).
The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse might still be more of a buzzword than a real thing, what is real is the demand for the tools to create these experiences, whether they are games, 3D tours or interactive movies.
The 6 design software stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 6% on average since the latest earnings results.
Best Q1: Autodesk (NASDAQ:ADSK)
Founded in 1982 by John Walker and growing into one of the industry's behemoths, Autodesk (NASDAQ:ADSK) makes computer-aided design (CAD) software for engineering, construction, and architecture companies.
Autodesk reported revenues of $1.63 billion, up 15.2% year on year. This print exceeded analysts’ expectations by 1.7%. Overall, it was a very strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
"Against an uncertain geopolitical, macroeconomic, and policy backdrop, our strong performance in the first quarter of fiscal 26 set us up well for the year," said Andrew Anagnost, Autodesk president and CEO.
The stock is up 1.2% since reporting and currently trades at $298.33.
Is now the time to buy Autodesk? Access our full analysis of the earnings results here, it’s free.
Procore (NYSE:PCOR)
Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore (NYSE:PCOR) offers a software-as-service project, finance, and quality management platform for the construction industry.
Procore reported revenues of $310.6 million, up 15.3% year on year, outperforming analysts’ expectations by 2.6%. The business had a strong quarter with accelerating customer growth and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 6.5% since reporting. It currently trades at $67.32.
Is now the time to buy Procore? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Adobe (NASDAQ:ADBE)
One of the most well-known Silicon Valley software companies around, Adobe (NASDAQ:ADBE) is a leading provider of software as service in the digital design and document management space.