Dallas, Texas 05/19/2014 (FINANCIALSTRENDS) – Autodesk, Inc (NASDAQ:ADSK) has upped its full-year revenue projection. After reporting its quarterly profit & revenue that was above analysts’ projections, helped by the higher sales of the company’s CAD software to engineering & the construction companies. Last week, the company stated that it now expects the revenue growth of 4-6% for the year that ended Jan. 31, 2015, which is an increase from the 3-5% that it had expected earlier. ADSK also raised its full-year billings growth projection to 7-9% from 5-8%.
The AutoCAD software
The company’s flagship AutoCAD- software is utilized by construction & engineering as well as manufacturing companies for designing as well as simulating simulate real-world performance of the products they manufacture. It competes against the offerings from Adobe Systems and Ansys Inc as well as Dassault Systemes SA. Autodesk, Inc (NASDAQ:ADSK) is transitioning from its license-based business to the cloud-based subscription model, and said that the subscription revenue climbed 12% to $276.3M in the Q1 that ended 30 April. The subscription models bring in much less money upfront as the payment is spread over an entire period of use which is different from the traditional packaged software. But typically, these ensure much more predictable recurring revenue.
Many software companies, like Adobe Systems as well as Nuance Communications, are now moving to provide products over cloud to attract even more customers with a much less upfront spending & faster upgrades. Autodesk, Inc (NASDAQ:ADSK)’s Q1 net income dropped to $28.3M or 12 cents/ share, from $55.6M, or 24 cents/ share, in the previous year. With the exclusion of items, the company had earned 32 cents / share. The revenue rose 4% to $592.5 million. On an average analysts projected that Autodesk, Inc (NASDAQ:ADSK) will report EPS of 21 cents per share on its revenue of $568.6 million.