Autodesk (ADSK) has reported strong second-quarter fiscal 2025 results, exceeding both revenue and earnings expectations. The company reported non-GAAP earnings of $2.15 per share, surpassing the Zacks Consensus Estimate by 7.5% and marking a 12.6% year-over-year improvement. Revenue also came in above expectations, reaching $1.5 billion, a 1.54% beat over the consensus mark and representing an 11.9% year-over-year increase.
Autodesk’s performance was fueled by broad-based growth across its product offerings and regions in the AEC and Manufacturing sectors. This positive momentum was somewhat offset by weakness in the Media and Entertainment (M&E) segment, primarily attributed to the ongoing impact of the Hollywood strike.
The company’s subscription revenues, accounting for 93.6% of total revenue, rose by 10.9% year-over-year to $1.4 billion. However, maintenance revenues, contributing 0.7% of total revenue, declined by 21.4% year-over-year to $11 million. Other revenues, representing 5.7% of total revenue, experienced a 41% increase to $86 million in the reported quarter. Recurring revenues constituted 97% of Autodesk’s second-quarter fiscal 2025 revenues.
Regionally, Autodesk saw significant growth. Revenues from the Americas, representing 44% of total revenues, climbed 12.4% year-over-year to $662 million. EMEA revenues, accounting for 37.9% of total revenues, increased by 12.6% to $570 million. Revenues from the Asia-Pacific region, contributing 18.1% of total revenues, saw a 9.2% year-over-year increase to $273 million. Billings, a key indicator of future revenue, rose by 13% year-over-year to $1.24 billion in the reported quarter.
Autodesk’s product performance was also noteworthy. The AEC segment, contributing 47.4% of total revenue, saw a 13.7% year-over-year increase to $713 million. Revenue from AutoCAD and AutoCAD LT, representing 25.8% of total revenue, climbed 6.9% to $389 million. The MFG segment, contributing 19.7% of total revenue, witnessed a 15.6% year-over-year increase to $296 million. Revenue from the M&E segment, accounting for 5.1% of total revenue, grew by 4.1% to $77 million.
Autodesk reported non-GAAP operating income of $560 million, a 14.5% year-over-year increase. The non-GAAP operating margin improved to 37%, a 1-percentage-point increase from the previous year.
As of July 31, 2024, Autodesk held $1.87 billion in cash and cash equivalents (including marketable securities), compared to $1.99 billion as of April 30, 2024. Deferred revenues decreased by 13% to $3.69 billion, while unbilled deferred revenues increased by $1.18 billion year-over-year to $2.17 billion. Remaining performance obligations (RPO) saw a 12% increase to $5.86 billion, with current RPO rising by 11% to $3.9 billion.
Cash flow from operating activities reached $212 million, representing a $77 million year-over-year increase. Free cash flow also saw a significant increase, rising by $75 million year-over-year to $203 million.
Looking ahead, Autodesk projects fiscal 2025 revenues between $6.08 billion and $6.13 billion, indicating approximately 11% growth. Billings are estimated to be in the range of $5.88-$5.98 billion, suggesting a 13-15% year-over-year increase. Non-GAAP earnings per share are expected to be between $8.18 and $8.31. The company anticipates a non-GAAP operating margin between 35% and 36% year-over-year, and free cash flow is projected to be in the range of $1.45-$1.5 billion.
For the third quarter of fiscal 2025, Autodesk expects revenues between $1.555 billion and $1.57 billion. Non-GAAP earnings are anticipated to be in the range of $2.08-$2.14 per share.
