Autodesk shares are trading modestly lower in late trading Tuesday despite reporting financial results for the fiscal second quarter ended July 31 that were ahead of Street estimates.
For the quarter, the design software company posted revenues of $913 million, up 15% from a year ago, and ahead of the Wall Street analyst consensus at $899 million. Non-GAAP profits of 98 cents a share topped the Street at 90 cents. One downbeat note: bookings in the quarter were down 12%.
For the fiscal third quarter, Autodesk (ticker: ADSK) sees revenue of $930 million to $945 million, with non-GAAP profits of 91 to 97 cents a share. That forecast brackets the current Street consensus at $939 million and 95 cents.
For the January 2021 fiscal year, Autodesk sees revenue of $3.715 billion to $3.765 billion, with non-GAAP profits of $3.72 to $3.90 a share, again bracketing the consensus at $3.73 billon and $3.78 a share.
“We delivered a strong second quarter as a result of our resilient business model and strategic nature of our products,” CEO Andrew Anagnost said. “Our cloud-based solutions are helping our customers stay productive in the current environment, and have resulted in expanded relationships and usage of our products. I am very proud of our team as we continue to deliver on our long-term strategic goals, and remain confident in our growth drivers and fiscal 2023 targets.”
In an interview with Barron’s, Anagnost said Autodesk has adapted fluidly to a work-from-home environment, with continued strong productivity from both sales and engineering, and an increase in customers using the company’s e-commerce channels.
Anagnost said that the company can measure monthly and daily active use of its software, and that there are strong usage trends in China, Japan, South Korea, and other places in Asia which faced the Covid 19 virus early. And he notes that new business trends to track increasing daily active usage. He says that usage is picking up in Germany, France, Italy, and Spain, while usage in the U.S and the U.K. is stable, but not improving like the other geographies.
Asked about where the company is seeing strength on a vertical market basis, he cited the AEC market (architecture, engineering, and construction), noting that while there was some fall off in daily usage in the field, there’s been a pick up in software used early in the design process for collaboration. He says the company is gaining share in the manufacturing sector and cited the film industry as an area that has been hit hard by the shutdown.
Overall, he says new business is down about 16% year over year—he says the company is still adding customers, but not as quickly as before the pandemic.
Autodesk in late trading is down 2.6%, to $245.73.