Autodesk, Inc. (NASDAQ: ADSK) stock rose over 3.6% on 25th November, 2020 (as of 9:36 am GMT-5; Source: Google finance) after the company posted better than expected results for the third quarter of FY 21. The company delivered total non-GAAP operating income of $287 million, compared to $225 million in the third quarter last year with Non-GAAP operating margin of 30%, up 3 percentage points. The company generated $85 million increase in cash flow from operating activities to $361 million. The company generated free cash flow of $340 million, an increase of $74 million compared to the third quarter last year. But, total billings declined by 1% to $1.01 billion.
ADSK in the third quarter of FY 21 has reported the adjusted earnings per share of $1.04, beating the analysts’ estimates for the adjusted earnings per share of 95 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 13 percent to $952.4 million in the third quarter of FY 21, beating the analysts’ estimates for revenue by 1.32%.
Additionally, during the third quarter the company spent $196 million to buyback 800,000 shares at an average price of approximately $231 per share. Year-to-date, the company has repurchased 2.12 million shares at an average price of approximately $186 per share, for a total spend of $393 million.
For the fourth quarter of 2021, the company expects revenue to a range of $999 million to $1,014 million and non-GAAP earnings per share to be in a range of $1.04 to $1.10.
ADSK has raised the low end of the full year 2021 revenue guidance to a range of $3.75 billion to $3.765 billion, which reflects the mid-point growth rate up to 15% year-over-year. The company has also raised the non-GAAP operating margin outlook to the upper end of prior range to approximately 29%, which reflects a 4 point improvement from last year. The company expects FY 21 non-GAAP earnings per share to be in a range of $3.91 to $3.97 and free cash flow to be in a range of $1,300 million to $1,360 million
Meanwhile, during the third quarter, one of the world’s leading professional services firms which serves clients in the infrastructure and building sectors, had raised its investment with Autodesk. The company had introduced several extensions to Fusion 360 that further encourage adoption and usage of the platform by adding specialist functionality. During the period, the company announced the acquisition of CAMplete, a leading provider of post-processing and machine simulation solutions.