Analyst Note| Julie Bhusal Sharma |
Wide-moat Autodesk reported a strong start to fiscal 2022, exceeding our expectations on the top and bottom lines. Revenue growth was driven by new product subscriptions, and improvement in usage and renewal rates. Autodesk continues to benefit from secular industry shifts toward cloud-platforms and digital acceleration. Capitalizing on the latter, the company’s architecture, engineering, and construction, or AEC, suite released new product offerings and enhancements in the quarter aimed at creating a set of seamless end-to-end cloud solutions that connect the entire construction workflow. We are encouraged by the continued investments made in high-growth-potential business segments. This quarter’s acquisition of Upchain meaningfully impacts its manufacturing business, but also shows promise in integrating with several other existing offerings.