Financial Performance - Total net revenue for the fiscal year ended January 31, 2025, was $6,131 million, a 11.5% increase from $5,497 million in 2024[388]. - Subscription revenue reached $5,717 million, up 11.8% from $5,116 million in the previous year[388]. - Gross profit for the fiscal year was $5,553 million, representing a 11.4% increase from $4,986 million in 2024[388]. - Net income for the fiscal year was $1,112 million, a 22.7% increase compared to $906 million in 2024[391]. - Total net revenue for fiscal year 2025 was $6.131 billion, a 11.5% increase from $5.497 billion in fiscal year 2024[492]. - Net income for the fiscal year ended January 31, 2025, was $1,112 million, an increase of 23% from $906 million in 2024 and 35% from $823 million in 2023[396]. - The Americas region generated $2.716 billion in net revenue for fiscal year 2025, an increase from $2.438 billion in fiscal year 2024[492]. - The Architecture, Engineering, Construction and Operations segment reported net revenue of $2.937 billion for fiscal year 2025, up from $2.580 billion in fiscal year 2024[492]. Cash Flow and Investments - Net cash provided by operating activities for fiscal 2025 was $1.61 billion, an increase from $1.31 billion in fiscal 2024[368]. - Net cash used in investing activities was $903 million for fiscal 2025, primarily due to business combinations and purchases of marketable securities[370]. - Net cash used in financing activities was $987 million in fiscal 2025, mainly due to repurchases of common stock[371]. - The company authorized a repurchase of $5 billion of common stock in November 2024, in addition to the remaining $3.88 billion from previous programs[379]. - Cash provided by operating activities increased to $1,607 million in 2025 from $1,313 million in 2024, representing a growth of 22.4%[396]. - The company reported a net cash used in investing activities of $903 million in 2025, compared to $502 million in 2024, indicating a significant increase in investment outflows[396]. Assets and Liabilities - Total assets increased to $10,833 million in 2025, up from $9,912 million in 2024[393]. - Total stockholders' equity rose to $2,621 million, compared to $1,855 million in the previous year[393]. - The total contractual obligations as of January 31, 2025, amounted to $3.89 billion, with significant portions due in fiscal years 2026 and 2027-2028[374]. - The company has open cash flow and balance sheet hedge contracts to manage foreign currency exchange risks, primarily denominated in Euros and British pounds[382]. - As of January 31, 2025, Autodesk's net accounts receivable increased to $1,008 million from $876 million in 2024, reflecting a growth of 15%[447]. Expenses - Total operating expenses for the fiscal year were $4,199 million, an increase from $3,858 million in 2024[388]. - Research and development expenses rose to $1,181 million in 2025, a 10.9% increase from $1,065 million in 2024[411]. - Stock-based compensation expense was $683 million in 2025, slightly down from $703 million in 2024[411]. - Advertising expenses for fiscal year 2025 were $54 million, down from $64 million in fiscal year 2024[479]. Acquisitions - The company acquired Aether Media, Inc. for $131 million, enhancing its artificial intelligence capabilities for visual effects creation tools[554]. - Autodesk acquired the PIX business of X2X, LLC for $266 million, aimed at improving collaboration and efficiency in the media and entertainment production process[555]. - The acquisition of Payapps Limited was completed for $387 million, expected to deepen Autodesk Construction Cloud's footprint and improve payment management for contractors[556]. - Autodesk's goodwill recorded from acquisitions during fiscal 2025 totaled $572 million, with $159 million and $185 million expected to be deductible for U.S. income tax purposes for Payapps and PIX, respectively[557]. Tax and Deferred Assets - The total income tax provision for fiscal year 2025 was $272 million, an increase from $230 million in 2024 and $123 million in 2023[535]. - Autodesk's net deferred tax assets increased to $1,173 million as of January 31, 2025, from $1,070 million in 2024[540]. - The valuation allowance against deferred tax assets decreased by $18 million in fiscal 2025, primarily due to the reduction of California deferred tax assets[542]. - Autodesk has $130 million of cumulative California state research tax credit carryforwards and $13 million of cumulative Massachusetts state research tax credit carryforwards, potentially reducing future tax liabilities indefinitely[546]. Stock and Equity - The company did not pay cash dividends in fiscal years 2025, 2024, or 2023, and does not anticipate paying any in the foreseeable future[477]. - The company issued 732 thousand shares under the Employee Stock Purchase Plan (ESPP) in fiscal 2025 at an average price of $165.89[533]. - Autodesk granted 3,229 thousand restricted stock units during the fiscal year ended January 31, 2025, with a weighted average grant date fair value of $245.32 per share[521]. - The fair value of shares vested during fiscal year 2025 was $785 million, compared to $580 million in 2024 and $490 million in 2023[522]. Foreign Currency and Risk Management - A hypothetical 10% appreciation of the U.S. dollar would increase the fair value of foreign currency contracts by $209 million as of January 31, 2025[383]. - Autodesk uses derivative instruments to manage foreign currency exchange rate exposures, with maturities typically between one and 12 months[439]. - The company monitors counterparty risk on a quarterly basis to mitigate credit-related losses from derivative contracts[440].

Core Points - Autodesk is undergoing leadership changes with Jim Lynch retiring, which has implications for the Architecture, Engineering, and Construction (AEC) business [3][6] - Amy Bunszel, who leads the AEC business, is expected to take on new responsibilities following Lynch's departure, indicating a shift in the company's strategic direction [6] Company Overview - Autodesk's AEC business has been significantly developed over the past five years under Jim Lynch's leadership, becoming a material part of the company's overall operations [6] - The company has been integrating various functions such as sales, marketing, and product development to enhance its AEC business [6]

Group 1 - Autodesk provides a comprehensive CAD platform and faces intense competition across various segments, particularly in China, which is a significant market for AEC [1] - The competition is impacting Autodesk's growth rates, indicating a challenging environment for the company [1] - The current valuation of Autodesk is considered to be in slightly overvalued territory, suggesting potential concerns regarding future performance [1]

Core Insights - Autodesk's Q4 results and guidance for 2025 indicate strong alignment with its AI strategy, showcasing growth across both segments driven by AI advancements [1][4] - The company is entering an "optimization phase" aimed at enhancing operational efficiency and reallocating resources for cost savings and growth opportunities [3] Financial Performance - Q4 revenue grew by 11.6%, surpassing analysts' consensus by 60 basis points, with Design segment up 12% and Make segment up 28% year-over-year [4] - Subscriptions, a key indicator of recurring revenue, increased by 14% across all geographies [4] - GAAP and adjusted operating margins expanded by 100 basis points year-over-year in F2025, contributing to a 10% rise in adjusted earnings [6] Regional Performance - Autodesk experienced double-digit growth in its primary U.S. market and all regions except for the "Other Americas" segment, which contracted by 4% [5] Analyst Sentiment - Analysts maintain a Moderate Buy rating, with a consensus price target of $338.43, indicating a potential upside of 23.41% [6][7] - Despite some price target reductions, the overall sentiment remains bullish, with more price target increases than decreases [7] Balance Sheet and Financial Health - The F2025 balance sheet shows a 10% increase in total assets, reduced debt, and a nearly 10% increase in shareholder equity, indicating strong financial health [8] - The company maintains low debt leverage at 1.25x cash balance and 0.75x equity, positioning it in a strong financial condition [8] Market Reaction - Following the Q4 report, Autodesk's stock rose approximately 1.5% in premarket trading, suggesting bullish sentiment and potential for further upside [9]

Core Viewpoint - Autodesk reported strong financial results for the fourth quarter of fiscal 2025, with earnings and revenues exceeding expectations, but announced a significant workforce reduction as part of a restructuring plan. Financial Performance - Non-GAAP earnings per share for Q4 FY2025 were $2.29, beating the Zacks Consensus Estimate by 7.51% and improving 9.6% year over year [1] - Revenues reached $1.64 billion, surpassing the consensus mark by 0.50% and growing 11.6% year over year [2] - Billings increased by 23% year over year to $2.11 billion [6] Revenue Breakdown - Subscription revenues, which accounted for 92.9% of total revenues, rose 13.7% year over year to $1.52 billion [4] - Maintenance revenues declined 28.6% year over year to $10 million, while other revenues decreased 7.8% to $107 million [4] - Recurring revenues contributed 97% to total revenues, with a net revenue retention rate within the targeted range of 100-110% [5] Regional Performance - Revenues from the Americas increased 11.3% year over year to $730 million [5] - EMEA revenues climbed 14.1% to $623 million, while Asia-Pacific revenues rose 7.1% to $286 million [5] Product Performance - AEC revenues, which represent 48.7% of total revenues, increased 14.8% year over year to $799 million [7] - AutoCAD and AutoCAD LT revenues rose 8.5% to $409 million, while Manufacturing revenues increased 8.9% to $318 million [7] Operating Results - Non-GAAP operating income was $608 million, reflecting a 16.5% year-over-year increase, with an operating margin of 37.1%, up 160 basis points [8] Balance Sheet & Cash Flow - Cash and cash equivalents totaled $1.89 billion, up from $1.71 billion as of October 31, 2024 [9] - Free cash flow was $678 million, an increase of $251 million compared to the previous year [10] Future Guidance - For Q1 FY2026, Autodesk projects revenues between $1.60 billion and $1.61 billion, with non-GAAP earnings per share expected between $2.14 and $2.17 [11] - For fiscal 2026, revenues are anticipated to be between $6.895 billion and $6.965 billion, with billings estimated in the range of $7.06 billion to $7.21 billion [11][12] Restructuring Plan - Autodesk plans to reduce its workforce by approximately 9%, equating to about 1,350 employees, as part of a worldwide restructuring initiative [3]

Financial Data and Key Metrics Changes - Total revenue in Q4 grew 12% year-over-year, with broad-based growth across products and regions [18][19] - GAAP and non-GAAP operating margins for Q4 were 22% and 37%, reflecting year-over-year increases of 90 basis points and 160 basis points, respectively [21] - Free cash flow for fiscal 2025 was $1.57 billion, exceeding guidance [22] Business Line Data and Key Metrics Changes - By product in constant currency: AutoCAD and AutoCAD LT revenue grew 9%; AECO revenue grew 15%; manufacturing revenue grew 10%; and M&E revenue grew 10% [18] - Direct revenue increased 35% in constant currency, representing 47% of total revenue, up 8 percentage points from last year [19] - Contribution from the new transaction model to revenue was $46 million in Q4 and $71 million for the year [19] Market Data and Key Metrics Changes - Revenue grew 11% in the Americas, 13% in EMEA, and 11% in APAC in constant currency [19] - RPO (Remaining Performance Obligations) of $6.9 billion and current RPO of $4.5 billion grew 14% and 12%, respectively [20] Company Strategy and Development Direction - Autodesk is focusing on the convergence of design and make in the cloud, enabled by platform, industry clouds, and AI [11][36] - The company is initiating an optimization phase of its sales and marketing plan to enhance customer satisfaction and productivity [8][10] - Future focus includes tighter channel partner integration and broad deployment of self-service capabilities [10][34] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty continues to impact customer willingness to invest, but they are optimistic about new product subscriptions and emerging businesses driving growth [58][60] - The company expects constant currency billings growth of 17% to 19% and revenue growth of 8% to 9% for fiscal 2026, excluding the impact of the new transaction model [28][29] - Management emphasized the importance of executing their go-to-market optimization plan to drive higher margins over time [65][100] Other Important Information - The company plans to buy back between $1.1 billion and $1.2 billion of shares in fiscal 2026, a 30% to 40% increase compared to fiscal 2025 [31] - Autodesk is committed to further margin expansion beyond fiscal 2026, aiming for GAAP margins among the best in the industry [100] Q&A Session Summary Question: What drives new business growth higher over time? - Management indicated that enhancing channel productivity and investing in emerging high-growth businesses will drive new business growth [58][60] Question: Can you provide more color on margin potential and restructuring? - Management expressed confidence in margin expansion due to strong fiscal discipline and the ongoing optimization of the go-to-market strategy [62][65] Question: How is macro uncertainty affecting customer sentiment? - Management noted that customers desire certainty and that uncertainty is fueling customer angst, but they believe Autodesk's diversified business can absorb policy changes [72][73] Question: What are the critical product or technology executables for the future? - Management highlighted investments in industry clouds and AI capabilities as key areas for future growth [81][82] Question: How does the revenue guide reflect potential disruption from restructuring? - Management acknowledged that the guidance considers potential risks associated with restructuring and the CRO transition [88] Question: What is the timeline for seeing benefits from sales and marketing adjustments? - Management indicated that significant benefits are expected in fiscal 2026, with ongoing investments to build capabilities for future optimization [106] Question: How does Autodesk view M&A in light of recent changes? - Management reaffirmed their commitment to being an acquisitive company, looking for opportunities that align with their strategy [108]

Market Performance - Market indexes are struggling despite positive Q4 earnings, with the Dow down -193 points (-0.45%), S&P 500 down -94 points (-1.59%), Nasdaq down -530 points (-2.78%), and Russell 2000 down -34 points (-1.59%) [2] - Over the last five trading days, all major indexes have declined, with the Nasdaq experiencing the largest drop at -6.8% [2] Housing Market - January Pending Home Sales decreased by -4.6%, significantly worse than the expected -1.0%, although it shows slight improvement from December's -5.5% [3] - High mortgage rates continue to hinder the housing market, alongside cold winter weather [3] Q4 Earnings Highlights - AutoDesk (ADSK) reported Q4 earnings of $2.29 per share, exceeding expectations of $2.13 and last year's $2.09, with revenues of $1.64 billion surpassing the $1.63 billion consensus [4] - SoundHound (SOUN) reduced its loss per share to -$0.05 from an estimated -$0.11, with revenues of $34.54 million reflecting +101% year-over-year growth [5] - Rocket Mortgage (RKT) beat earnings estimates by a penny at 4 cents per share, with revenues of $1.2 billion exceeding the $1.16 billion forecast [6] - Duolingo (DUOL) reported a +51% year-over-year increase in Daily Active Users (DAU) to 40.5 million, with revenues surpassing expectations, although shares fell -4% in late trading [7]

Core Insights - Autodesk reported better-than-expected earnings for fiscal Q4 2025, driven by a successful transition to a subscription model and strong global performance [1][2] Financial Performance - Non-GAAP EPS for fiscal Q4 2025 was $2.29, exceeding Wall Street's consensus by $0.15, while revenue reached $1.639 billion, closely aligning with the expected $1.631 billion [2][3] - Year-over-year revenue growth was 11.6%, up from $1.469 billion in fiscal Q4 2024, with subscription sales contributing significantly [3][6] - Free cash flow surged to $678 million, a 58.8% increase from the previous year [3][8] - Operating margin improved to 37%, compared to 36% in the prior year [3][8] Business Model and Strategy - Autodesk has transitioned from selling perpetual software licenses to a software as a service (SaaS) model, emphasizing cloud integration [4] - The subscription model allows for more predictable revenue and enhances competitiveness in the market [4] - The company invested $393 million in R&D during the fiscal quarter, focusing on AI and generative design [5] Market Performance - Subscription revenue grew 13.7% to $1.522 billion, making up 97% of total revenue [6] - Revenue growth was notable in the Americas (11%) and Europe/Middle East/Africa (14%), with the AECO segment increasing by 15% [7] Future Outlook - For fiscal 2026, Autodesk anticipates revenue between $6.895 billion and $6.965 billion, with non-GAAP EPS projected to range from $9.34 to $9.67, indicating confidence in growth [9] - Ongoing investments in R&D, particularly in AI and cloud technologies, are seen as crucial for future success [9]

For the quarter ended January 2025, Autodesk (ADSK) reported revenue of $1.64 billion, up 11.6% over the same period last year. EPS came in at $2.29, compared to $2.09 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.63 billion, representing a surprise of +0.50%. The company delivered an EPS surprise of +7.51%, with the consensus EPS estimate being $2.13.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street exp ...

Autodesk (ADSK) came out with quarterly earnings of $2.29 per share, beating the Zacks Consensus Estimate of $2.13 per share. This compares to earnings of $2.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.51%. A quarter ago, it was expected that this design software company would post earnings of $2.11 per share when it actually produced earnings of $2.17, delivering a surprise of 2.84%.Over the last four quarters, the c ...