Autodesk Inc (NASDAQ: ADSK)
Autodesk shares rose more than 9% after-hours on Tuesday after third quarter earnings and revenue of the software design firm surpassed Wall Street expectations.
The company also said it had entered an agreement to acquire PlanGrid – a startup construction software company based in San Francisco – for $875 million in cash.
Executives of both companies expect to close deal by the end of the current quarter. The acquisition is aimed at strengthening the cloud-based construction platform of Autodesk. Shares of Autodesk closed the regular session on Tuesday at $123.05, before gaining $9.65, or 7.87% to change hands at $132.70.
ADSK Earnings & Outlook
Autodesk reported a loss of $23.7 million, or $0.11 per share versus $119.8 million, or $0.55 per share, in the comparable period last year. Earnings, adjusted for special items came to $0.29 per share, beating Refinitiv estimates by 2 cents. Sales totaled to $660.9 million compared with $515.3 million in the same period a year ago, and above analysts’ estimate of $640.9 million.
Looking ahead, the company views fourth quarter adjusted earnings in the range of $0.40 to $0.44 per share, while analysts forecast adjusted earnings of $0.40 per share. Autodesk also expects revenue to be in the range of $700 million to $710 million, while analysts forecast $689.1 million.
Autodesk Executive Comments
“We achieved strong third quarter results across the board, punctuated by accelerating ARR growth,” said Andrew Anagnost, Autodesk president and CEO. “Demand strength was balanced across all major geographies and product families, which demonstrates how our customers have embraced the value of our subscription and cloud offerings. We’re also excited about our agreement to acquire PlanGrid and the huge opportunity it presents in construction.”
Scott Herren, CFO of Autodesk also added, “Subscription plan now represents over 75 percent of our ARR base, driven by continued demand for our offerings and a steady stream of existing maintenance customers migrating to product subscription. We also achieved another major milestone in our business model transition by ending the quarter with over 4 million active subscriptions.”
Autodesk, Inc. Company Profile
Autodesk, Inc. engages in the design of software and services. Its products include Autodesk 360 cloud services, AutoCAD civil 3D and LT, 3Ds Max, Maya, and Revit. The company also offers development and manufacturing software, which provides manufacturers in automotive, transportation, industrial machinery, consumer products, and building product industries with comprehensive digital design, engineering, and production solutions.
It also provides digital media and entertainment, which consists of tools for digital sculpting, modeling, animation, effects, rendering, and compositing for design visualization, visual effects, and games production. The company was founded by John Walker in April 1982 and is headquartered in San Rafael, CA. – CNN Money
