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Autodesk is one of the top software companies in the country with its ability to create software for essential industries such as engineering and education. Autodesk has had the ability to effectively navigate through the hardships that the country has endured due to COVID-19.

After the closing bell on Tuesday, Autodesk reported its fiscal year 2020 second-quarter financial results. Autodesk announced that second quarter results were better than expected. Autodesk recorded revenue of $913 million compared to $796 million during this period last year. The revenues reported exceeded analyst expectations of $899 million for the quarter. In comparison to the year-ago period, Autodesk earnings advanced to $0.98 per share from $0.65 per share which ultimately beat the consensus value of $0.90 per share.

98% of their revenue is recurring which serves to justify a higher valuation multiple due to the increased transparency of future sales and ability to provide guidance with more accuracy.

"We delivered a strong second quarter as a result of our resilient business model and strategic nature of our products," said Andrew Anagnost, Autodesk president and CEO. "Our cloud-based solutions are helping our customers stay productive in the current environment, and have resulted in expanded relationships and usage of our products. I am very proud of our team as we continue to deliver on our long-term strategic goals, and remain confident in our growth drivers and fiscal 2023 targets."

“The third quarter and full-year fiscal 2021 outlook assume a projected annual effective tax rate of 23 percent and 16 percent for GAAP and non-GAAP results, respectively. Shifts in geographic profitability continue to impact the annual effective tax rate due to significant differences in tax rates in various jurisdictions” added Anagnost.

In addition, Autodesk announced that they increased their FY21 revenue view to $3.715 billion to$3.765 billion from $3.675 billion to $3.775 billion, versus the consensus $3.86 billion.

Disclosure: At the time of publication, I have no positions in any of the securities mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for creating this article (other than from TheStreet) and have no business relationship with any company whose stock is mentioned in this article.