Autodesk Results Fall Short Friday

Autodesk, Inc. (NASDAQ:ADSK) reported weaker-than-expected results for its first quarter on Thursday.

The company, based in San Rafael, Calif., revealed total Annualized Recurring Revenue increased 33% to $2.83 billion.

Billings were $798 million; adjusting for adoption of ASC 606, billings increased 40%. Total revenue increased 31% to $735 million; recurring revenue represents 96% of total.

GAAP operating margin was 3%. Non-GAAP operating margin was 18%, up 13 percentage points. GAAP diluted EPS was $(0.11); Non-GAAP diluted EPS of $0.45. Cash flow from operating activities was $221 million; free cash flow was $207 million.

The second quarter and full year fiscal 2020 outlook assume a projected annual effective tax rate of 34% for GAAP and 18% for non-GAAP results.

Shifts in geographic profitability continue to impact the annual effective tax rate due to significant differences in tax rates in various jurisdictions.

Thus, assumptions for the annual effective tax rate are evaluated regularly and may change based on the projected geographic mix of earnings.

"We are off to a strong start in fiscal 2020 with billings and free cash flow coming in at or above expectations and great momentum across the entire business," said Andrew Anagnost, Autodesk CEO.

"We are particularly pleased with the performance of our Construction portfolio, where we have started realizing both the sales and technology synergies we envisioned when we acquired PlanGrid and BuildingConnected. Overall, we are on track to achieve our fiscal 2020 ARR and free cash flow guidance and are reaffirming our fiscal 2023 targets."

Shares descended $9.16, or 5.4%, to $160.38