By Reuters | Updated: August 30, 2024
Aug 29 (Reuters) – Autodesk (ADSK.O) raised its forecast for fiscal 2025 revenue and profit on Thursday, citing robust spending on its design software amid signs of an easing economy, sending shares up more than 5% in extended trading.
Autodesk’s results indicate that industries ranging from construction and architecture to animation are heavily investing in the company’s software, driven by its artificial intelligence and machine learning capabilities that enhance and streamline workflows.
“We’re continuing to see resilience from our diverse portfolio and subscription business model, as renewal rates remain strong and new business growth and leading indicators were consistent with recent quarters,” Autodesk CEO Andrew Anagnost said in a statement.
However, the company faces pressure from activist investor Starboard Value, which has been pushing for changes, including at the upper management level.
Starboard disclosed a stake of more than $500 million in Autodesk in June and recently lost a bid to appoint nominees to the company’s board.
Autodesk raised its forecast for full-year revenue to a range of $6.08 billion to $6.13 billion from its earlier projection of $5.99 billion to $6.09 billion.
The San Francisco, California-based company expects annual adjusted earnings per share in a range of $8.18 to $8.31 per share, compared to the previous forecast of $7.99 to $8.21.
For the third quarter, Autodesk forecast revenue between $1.56 billion and $1.57 billion, slightly above the average analysts’ estimate of $1.55 billion, according to LSEG data.
The company reported second-quarter revenue of $1.51 billion, surpassing estimates of $1.48 billion. Net income per share was $1.30, compared to $1.03 per share a year ago.
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@ Thomson Reuters 2024
