Autodesk, Inc. (NASDAQ: ADSK) stock surged over 14.3% on 24th August, 2018 (As of 9:43 AM GMT-4; Source: Google finance) after the company reported better than expected results for the second quarter 2019 led by strong growth in total annualized recurring revenue.
ADSK in the second quarter of FY 19 has reported the adjusted earnings per share of 19 cents, beating the analysts’ estimates for the adjusted earnings per share of 16 cents, as per analysts surveyed by FactSet. The company had reported the adjusted revenue growth of 22 percent to $611.7 million in the second quarter of FY 19, beating the analysts’ estimates for revenue of $600.4 billion. Billings rose 27% to $605 million compared to the second quarter last year. Recurring revenue grew to 96%.
Further, Subscription plan ARR was $1.68 billion, which is a rise of 115 percent compared to the second quarter last year as reported, and 111 percent on a constant currency basis. Under the prior revenue accounting standard, ASC 605, subscription plan ARR was $1.66 billion, a rise of 112 percent compared to the second quarter last year. Total ARR was $2.35 billion, a rise of 28 percent compared to the second quarter last year as reported, and 27 percent on a constant currency basis. Under ASC 605, total ARR was $2.32 billion, a rise of 27 percent compared to the second quarter last year. Subscription plan subscriptions has increased 290,000 from the first quarter of FY19 to 2.86 million at the end of the second quarter. Subscription plan subscriptions benefited from 117,000 maintenance subscribers that converted to product subscription under the maintenance-to-subscription (M2S) program. Total subscriptions increased 119,000 from the first quarter of FY19 to 3.94 million at the end of the second quarter.
Additionally, ADSK continue to aggressively pursue the $10 billion construction opportunity. And last month, the company had expanded the product offerings with the acquisition of Assemble Systems, which is a cloud-based solution offering combined 2D and 3D quantity take off for the construction market.
For the third quarter of 2019, ADSK expects adjusted earnings to be in the range of 24 cents to 28 cents a share on sales expected to be in the range of $635 million to 645 million. For the third quarter, analysts projected the adjusted earnings of 28 cents a share on sales of $634 million.