Autodesk, Inc. (NASDAQ: ADSK) has reported the adjusted loss per share of $0.28 in the fourth quarter 2017, while the analysts’ estimates for the adjusted loss per share of $0.34. Hence, the stock fell over 1.5% in the pre-market session on March 1st, 2017 (Source: Google finance). During Autodesk’s business model transition, the revenue is negatively impacted as more revenue is recognized rather than up front and as new offerings generally have a lower initial purchase price.
Meanwhile, the company had reported the adjusted revenue fell 26.1 percent to $478.80 million in the fourth quarter 2017, beating the analysts’ estimates for revenue of $476.06 million.
The new model subscriptions have increased 227,000 from the third quarter of fiscal 2017 to 1.09 million. The total subscriptions have increased by 154,000 from the third quarter of fiscal 2017 to 3.11 million at the end of the fourth quarter. Total ARR in the fourth quarter grew 16 percent to $1.60 billion and 19 percent on a constant currency basis. However, similar to the last quarter, the fourth quarter total ARR growth was impacted by the allocation of existing marketing development funds (MDF).
For the customer needs, ADSK had released a product lifecycle management solution. There are near-term revenue and profitability challenges, but there are continuing healthy growth in subscriptions. Moreover, ADSK got success from the cloud subscriptions where the best-in-class BIM 360 and Fusion offerings drove more than a 150 percent increase year-over-year and represent ADSK’s increasing footprint in construction and manufacturing. The company is now well-positioned for the next phase of the transition where ADSK will offer the maintenance customers an easy and cost-effective path to move to product subscription.
For the first-quarter, the company expects the revenue to be in the range of $460-$480 million and a non-GAAP loss per share in the range of $0.27-$0.21.
For the FY 18, the company expects the revenue to be in the range of $2000-$2050 million and a non-GAAP loss per share in the range of $0.73-$0.21. The net subscription additions for the FY 18 is expected to be in the range of 600,000 – 650,000 and the total ARR for FY 18 are expected to be 24% – 26%.
ADSK stock has risen 70.58% in a year (source: Google Finance). According to tipranks.com, 5 analysts has covered the stock while recommending a “Moderate Buy”. ADSK has an average price target of $87.50, which is a limited further upside of 0.21%.