Autodesk Reports 11% Revenue Growth to $1.57 Billion for Quarter Ended October 31, 2024

Autodesk, Inc. reported a notable increase in its financial performance for the three and nine months ended October 31, 2024, with total net revenue reaching $1.57 billion and $4.49 billion, respectively, marking an 11% and 12% increase compared to the same periods in the previous fiscal year. Subscription revenue, which constitutes a significant portion of the company's income, rose by 11% to $1.46 billion for the quarter and $4.23 billion for the nine-month period. The company's net income also saw an increase, amounting to $275 million for the quarter and $809 million for the nine months, compared to $241 million and $624 million in the prior year.

The company's operational metrics reflected a strong performance, with recurring revenue accounting for 97% of total net revenue for both the three and nine months ended October 31, 2024. Autodesk's net revenue retention rate remained stable, falling within the range of 100% to 110% on a constant currency basis. However, deferred revenue decreased by 14% compared to the previous fiscal year, while remaining performance obligations were flat at $6.11 billion. The company attributed the revenue growth primarily to an increase in subscription renewal revenue and expansion of its subscriber base.

Strategically, Autodesk has made significant acquisitions to enhance its product offerings. Notable acquisitions include Aether Media, Inc., which provides a cloud-based AI pipeline for creating 3D characters, and Payapps Limited, a cloud-based software platform for managing construction-related payments. These acquisitions are expected to bolster Autodesk's capabilities in artificial intelligence and construction management, respectively. The company also launched new capabilities in Autodesk Forma, aimed at improving workflows in the architecture, engineering, and construction sectors.

Geographically, Autodesk's revenue growth was driven by strong performance in the Americas, particularly in the U.S., where revenue increased by 11% to $579 million. The company also reported growth in the EMEA and Asia Pacific regions, with revenue increases of 12% and 10%, respectively. The direct sales channel saw a significant increase, with revenue rising by 23% to $662 million, while indirect sales grew by 4% to $908 million. The company continues to transition to a new transaction model that allows for more direct engagement with customers, which is expected to positively impact revenue growth in the future.

Looking ahead, Autodesk remains optimistic about its growth trajectory, emphasizing its commitment to expanding its cloud offerings and enhancing customer experiences. The company anticipates that its strategic investments and acquisitions will continue to drive innovation and market share expansion. However, Autodesk also acknowledges potential challenges, including geopolitical tensions and economic volatility, which may impact its operations and financial performance in the coming quarters.