Autodesk (ADSK) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue grew 12% year-over-year to $1.42 billion, with 97% from recurring revenue streams and strong performance across product lines and geographies.

• GAAP operating margin rose to 21%, up 4 points; non-GAAP operating margin reached 35%, up 3 points.

• Net income increased to $252 million from $161 million in the prior year quarter, with diluted EPS of $1.16 compared to $0.75.

• Free cash flow for Q1 was $487 million, down from $714 million in the prior year period.

• No restatement or adjustment required for any previously reported financial statements following the Audit Committee investigation; integrity of financials affirmed.

Financial highlights

• Subscription revenue grew 11% year-over-year to $1.33 billion; AEC revenue was $674 million, up 16%; Manufacturing $268 million, up 9%; AutoCAD/AutoCAD LT $534 million, up 13%.

• Americas revenue grew 12% to $619 million, EMEA 13% to $534 million, APAC 9% to $264 million.

• Direct revenue increased 20%, now 38% of total revenue.

• Billings declined 5% to $1.11 billion due to annual billing transition; deferred revenue down 12% to $3.96 billion.

• Remaining performance obligations (RPO) increased 9% to $5.89 billion; current RPO up 12% to $3.92 billion.

Outlook and guidance

• FY25 revenue guidance: $5.99–$6.09 billion, up 9–11%; non-GAAP operating margin expected at 35–36%; GAAP at 21–22%.

• FY25 free cash flow guidance: $1.43–$1.5 billion, excluding $200 million from prior upfront billings.

• Q2 FY25 revenue guidance: $1.475–$1.49 billion; GAAP EPS $1.12–$1.18; non-GAAP EPS $1.98–$2.04.

• Net revenue retention rate projected at 100–110% for FY25 at constant currency.

• Rule of 40 target of 45% or more remains a long-term goal.