Autodesk reported strong financial quarterly results for its latest (First Fiscal 2015) quarter compared to the first quarter of fiscal 2014. Revenue for the first quarter was up to 593 million USD, an increase of 4 percent compared to the year-ago-quarter.
“Our year is off to an encouraging start. We had solid first quarter results and made meaningful progress on our business model transition with the addition of over 89,000 subscriptions,” said Carl Bass, Autodesk president and CEO. “Continued strength in our suites and Architecture, Engineering and Construction (AEC) business segment, strong demand in Asia Pacific (APAC), and solid performance in our Manufacturing business drove financial results above our expectations.”
“While we experienced strong growth in our cloud and desktop subscriptions (rental),” Bass continued, “strong growth in maintenance subscriptions was the primary driver behind the increase in total subscriptions, as expected. Late in the first quarter we launched AutoCAD LT as a desktop subscription on a global basis and were pleased with the initial response. We look forward to building on these early successes and transitioning Autodesk to an even more profitable and recurring, subscription-based model over the next four years.”
Key figures from the quarterly results include:
- Total billings increased 10 percent compared to first quarter of fiscal 2014 (year ago)
- Total subscriptions increased by over 89,000 compared to fourth quarter of fiscal 2014 (sequential growth)
- GAAP operating margin was 7 percent, compared to 14 percent for first quarter of 2014 (year ago)
- Deferred revenue increased 13 percent to a record 964 million USD, compared to year ago quarter
- Cash flow from operations was 219 million USD, compared to 224 million USD from year ago quarter
Revenue from the Americas increased 2 percent to 206 million USD (35 percent of all revenue) compared to the year ago quarter. EMEA (Europe, Middle East and Africa) revenue increased 4 percent to 226 million USD (38 percent of all revenue). Revenue in APAC (Asia Pacific) increased 6 percent to 161 million USD (27 percent).
Autodesk is reporting that revenue from their Platform Solutions and Emerging Business (PSEB) segment was flat at 212 million USD, compared to the year ago quarter. Another important figure reported was that revenue from Suites increased 19 percent to 210 million USD compared to the year ago quarter.
“We are pleased with the first quarter results,” said Mark Hawkins, Autodesk executive vice president and CFO. “Our better than expected results, coupled with our optimistic view of the current macroeconomic environment, led us to raise our business outlook for billings and revenue for fiscal year 2015.”
Signs of Improving Global Economy
Autodesk’s better than expected financial results may be a sign of an improving global economy. While the 2 percent increased in the America’s is lack-luster compared to its Fiscal Year 2015 guidelines at 4-6 percent revenue growth and billings at 7-9 percent, the company showed strong percentage increases in Asia Pacific—it’s smallest and perhaps weakest market—and in its Suites business, a possible reflection that companies are now doing well enough to push ahead on major upgrades on equipment and thinking ahead to value options via intelligent bundles of software.
To learn more read the official press release here.