Autodesk Releases Strong Q2 Results, Touts New Transaction Model

Autodesk Q2 Results — Autodesk reported strong results with revenue of $1.51 billion in the quarter that ended in July.
*Graphic courtesy of Autodesk* *Inc.*

Autodesk released its fiscal 2025 second-quarter results Aug. 29, which include earnings of $2.15 per share that beat analysts' expectations of $2 per share and compares to $1.91 per share reported one year ago. The figures are adjusted for non-recurring items. The construction software company and its executives also delivered 13% revenue growth in constant currency over the first two quarters of the year.

After its Q1 results were delayed due to the company not accounting for front-loaded deals with customers including design firms and contractors that buy enterprise-wide licenses, activist investor Starboard Value called for replacing CEO Andrew Anagnost and his leadership team in a letter to company board members. Starboard also said it would consider a lawsuit about the accounting revision. Its officials could not be reached for further comment.

With Autodesk total revenue increasing 12% to $1.51 billion, a change in leadership seems unlikely. According to the numbers, its GAAP operating margin was 23%, up 4%; and its non-GAAP margin was 37%, up 1%. The firm also said GAAP-diluted earnings per share was $1.30 and non-GAAP diluted EPS was $2.15. Cash flow from operating activities was $212 million and free cash flow was $203 million.

"Autodesk drove strong second-quarter results, underpinned by our customers’ demands for innovative solutions to address pressing global challenges." Anagnost said in a statement. "Despite continued macroeconomic and geopolitical challenges, we saw broad-based growth across nearly all our products and regions. Renewal rates remain strong, and new business growth and leading indicators were consistent with recent quarters."

The internal audit that delayed release of the firm's Q1 results showed that its practice of signing up customers to multiyear, sometimes-discounted deals for its software licenses had resulted in lower income than if the customers had been booked as annual, full-price enterprise-level subscriptions. The audit, which revealed that the practice led to a discrepancy in its books in recent years and a shortfall in free cash flow for early 2024, also resulted in the replacement of Autodesk's CFO.

Autodesk touted its new transaction model that enables customers to purchase directly on the company's website or through an authorized partner/reseller—keeping payments more company controlled as a factor in its improved 2Q results.

ENR Associate Technology, Equipment and Products Editor Jeff Yoders has been writing about design and construction innovations for 20 years. He is a five-time Jesse H. Neal award winner and multiple ASBPE winner for his tech coverage. Jeff previously wrote about construction technology for Structural Engineer, CE News and Building Design + Construction. He also wrote about materials prices, construction procurement and estimation for MetalMiner.com. He lives in Chicago, the birthplace of the skyscraper, where the pace of innovation never leaves him without a story to chase.

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