Autodesk exceeded analyst expectations with 13 percent

3D design software developer Autodesk has outperformed financial analyst predictions by registering a 13 percent year-over-year increase in its revenue during Q3 2021.

The company generated $ 952 million in revenue during Q3 2021, a 13 percent increase over the reported $ 842.7 million in Q3 2020. The figure also represents a $ 9.85 million improvement on the firm’s revenue expectations, which, in turn, has received more. Return of $ 1.04 per share instead of $ 0.96 for shareholders.

Despite this, Autodesk’s revenue growth slowed during the 2021 fiscal year (which runs throughout calendar years), with 20 percent annual growth in the first quarter of 2020 and 15 percent in the second quarter of 2020, now down to 13 percent Has been. The firm’s revenue growth in the third quarter was largely driven by a 24 percent increase in its subscription revenue, which mitigated the revenue decline seen within its maintenance segment.

On an earnings call with analysts and investors, Autodesk President and CEO Andrew Anagnost expressed confidence that the firm’s revenue growth would continue in Q4 and beyond. “Our strong third quarter results reflect the increased customer value of our cloud-based platform and the flexibility of our subscription business model,” Anagnost said.

“We are confident of our fiscal year 2023 targets, and expect to see double-digit growth after that,” he said.

Autodesk Q3 2021 Financial Results

AutoDesk’s financial results are stated in two main sections: Subscription Revenue and Maintenance Plan Revenue. Subscription revenue includes the company’s income from product subscriptions, cloud service offerings and EBA, which essentially represents a hybrid of its desktop and cloud-based software revenues.

Maintenance revenue, meanwhile, includes the firm’s income generated from plans provided to customers, including the option to upgrade to new releases of Autodesk after launch.

Subscription-based revenue continued to account for the majority of Autodesk’s revenue during Q3 2021, generating $884 million compared to a reported $715 million in Q3 2020. In contrast, the firm’s maintenance revenue continued to decline, falling 56, due to the impact of the epidemic. The percentage increased to $ 39.8 million in Q3 2021 from $ 91.2 million in Q3 2020.

Geographically, the U.S. Autodesk remained the most profitable market during the third quarter, raising $ 328.5 million in revenue, with an annual growth of 14 percent. Meanwhile, the company’s APAC-based business showed the largest gradual improvement, recording 19 percent annual revenue growth during the third quarter of 2021, while its EMEA income grew 11 percent.

In terms of individual product families, Autodesk’s proprietary AutoCAD 3D printing software was its best-performing package, generating $ 278.8 million during Q3 2021. This figure represents a 33 percent improvement over the reported $ 245.4 million in Q3 2020.

Autodesk’s Recurring Revenue Boosts in Q3 2021

During the company’s second quarter earnings call of 2021, Anagnost reported that the level of software usage in Europe and many of its Asian markets had risen to pre-epidemic levels. Although Autodesk’s U.S. And U.K. While markets have not seen the same level of recovery, Anagnost emphasized that the diversity of its revenue streams has boosted its revenue performance.

Regarding 3D printing software, the company announced that it has now reached 30 million users worldwide, with teachers as well as designers adopting the technology. Fusion 360 in particular was identified by the firm as being popular at the university level, replacing entry-level, browser-based CAD software with more professional solutions.

Similarly, Anagnost cited the example of a Chinese client who left Autodesk’s services for a low-cost competitor. After seeing that the Autodesk offering provided increased functionality, anonymous customers returned and purchased the collections for the first time in an effort to grow their business.

Autodesk’s 100–110 percent customer retention rate has also enabled it to increase its revenue, and reinvest in acquisitions that expand on its existing offering. During Q3, the firm acquired post-processing provider CAMplete, and agreed to partner with Sandvik Coromant and Rockwell Automation to enhance its Fusion 360 software.

While the former will allow AutoDesk clients to emulate machine code that runs their production equipment before running it, the latter is set to achieve advanced automation during printing. Through these “continued investments”, the company aims to bring home its “competitive advantage” for the foreseeable future.

Continuous growth for Q4 2021?

Although Autodesk CFO Scott Herren urged caution during the earnings call before an “uncertain” Q4, he also said he expected membership rates to remain healthy in the future.

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