Autodesk revenue grows 16 per cent as software backlogs and margins diverge
Autodesk's quarterly revenue rose 16 per cent while its committed backlog grew only 2 per cent. Workday's twelve-month subscription backlog increased 14.2 per cent; Elastic's cloud revenue gained 20 per cent, but its GAAP operating margin remained minus 5 per cent. The results show continued enterprise-software demand, with differences emerging in how much revenue growth converts into forward contracts and profitability.
Economics & Markets··Evening
Autodesk revenue outpaces its committed backlog
Autodesk reported revenue of 2.046 billion dollars for the quarter ended 31 July, up 16 per cent as reported and 14 per cent in constant currency. Its committed backlog grew 2 per cent to 7.433 billion dollars, while billings rose 10 per cent to 1.854 billion dollars. GAAP operating margin reached 29 per cent and adjusted margin 41 per cent, gains of 4 and 2 points respectively. Free cash flow increased 24 per cent to 561 million dollars. Design revenue rose 16 per cent to 1.708 billion dollars and Make revenue 26 per cent to 244 million dollars, while the other line fell 3 per cent. The company raised full-year revenue guidance, including MaintainX, to between 8.295 billion dollars and 8.345 billion dollars.[1]
Workday's total revenue for the quarter ended 31 July rose 12.8 per cent to 2.649 billion dollars, while subscription revenue increased 13.9 per cent to 2.471 billion dollars. Its twelve-month subscription backlog grew 14.2 per cent to 9.034 billion dollars, while total subscription backlog gained 8.0 per cent to 27.403 billion dollars. GAAP operating income was 313 million dollars, or 11.8 per cent of revenue, compared with 824 million dollars and 31.1 per cent on a non-GAAP basis. Chief executive Aneel Bhusri said artificial intelligence drove more than 25 per cent of new annual contract value and more than 5,500 customers used at least one company agent. Full-year guidance called for subscription revenue of 9.940 billion dollars to 9.950 billion dollars and a non-GAAP operating margin of 31.0 per cent.[2]
Elastic's cloud growth leaves a GAAP loss
Elastic's revenue for the quarter ended 31 July rose 15 per cent to 478 million dollars, with subscription revenue of 449 million dollars. Elastic Cloud revenue increased 20 per cent to 235.2 million dollars; the annual cloud line grew 27 per cent to 185 million dollars while the monthly line added only 1 per cent. GAAP operating margin was minus 5 per cent and adjusted margin 16.2 per cent. Customers spending more than 100,000 dollars a year increased from 1,720 three months earlier to more than 1,800, while net expansion was about 111 per cent. Elastic guided to full-year revenue of 1.998 billion dollars to 2.010 billion dollars and an adjusted operating margin of about 19.4 per cent. Cloud sales supported growth while the GAAP operating loss persisted.[3]
