Autodesk just reported Q1 results that are pretty good, but investors are likely to focus on rising costs and a gloomier outlook for the rest of the year.
Total revenue in Q1 was $647 million, up 9% as reported and up 13% in constant currencies (cc), just a bit above the top end of earlier guidance of $625 million to $645 million. Problematic is that this revenue increase didn’t translate into increased profits, as higher costs led to a decrease in cash flow and net income.
By category, license and other revenue was up 3% as reported while subscription revenue was up 16%.
By geo, revenue in the Americas was up 19%; from EMEA, up 9% as reported and up 15% in cc percent on a constant currency basis; and from APAC, revenue was down 3% as reported and up 2% cc.
By line of business, the AEC segment reported revenue up 21% year/year; from Manufacturing, up 25%. Revenue from the Platform Solutions and Emerging Business segment was down 13%, likely as customers continue to choose suites and buy products on subscriptions. The Media and Entertainment business segment saw revenue increase of 6%.
The real problem with Autodesk’s report is that it’s pulling back on earlier optimism for 2015. Q2 revenue is now expected to be between $600 million and $620 million, and fiscal 2016 is expected to be up 2% to 4% — down from earlier expectations of 3% to 5%. A lot of this is probably currency-related, but we’ll know more after the earnings call.
I’m jumping on a plane; more soon.
