Autodesk Earnings: Business Momentum Despite Difficult Operating Environment

Wide-moat Autodesk reported fiscal 2024 second-quarter results that moderately exceeded our expectations. Autodesk achieved strong results despite a difficult macroeconomic environment and currency headwinds through strong subscription metrics coupled with product and geographic diversification. Customers continue to increase usage of Autodesk’s software, resulting in enterprise business agreement usage surpassing limits built into initial contracts leading to a billings, free cash flow, and subscription revenue lift. Considering Autodesk’s difficult operating environment with its strong results and raised guidance, we are raising our fair value estimate to $247 from $240 per share. Shares popped over 6% afterhours, but despite the increase, we view shares as attractive and note a rare opportunity for long-term-oriented investors to buy this stellar wide-moat name.