Autodesk (ADSK) Q2 Loss Lower Than Expected, Revenues Beat
Zacks Investment Research | Aug 24, 2017 11:08PM ET
Autodesk Inc. (NASDAQ:ADSK) reported second-quarter fiscal 2018 non-GAAP loss of 11 cents per share, narrower than the Zacks Consensus Estimate of a loss of 15 cents. The figure was also much narrower than the guided range of a loss of 14–18 cents per share.
Revenues of $501.8 million beat the consensus mark of $494.8 million but fell nearly 8.9% year over year. The figure was better than the guided range of $488–$500 million.
Moreover, deferred revenues increased 17% to $1.78 billion in the quarter, which reflects growing strength of the business model. Total recurring revenue was 91% in the reported quarter, a significant increase from 69% reported in the year-ago quarter.
Management continues to emphasize that revenues will be negatively impacted by the business model transition from “upfront” to “ratably” as well as lower initial purchase price of new offerings.
Improvement in average revenue per subscriptions (ARPS) owing to price increases as well as lesser discounts related to shift from legacy maintenance plans to product subscriptions will drive growth in second half fiscal 2018.
Notably, shares of Autodesk have gained 49.5% year to date, substantially outperforming the Zacks Investment Research
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