Earnings

Subscription model helps Autodesk revenue beat estimates

Autodesk reported better-than-expected quarterly revenue, as the maker of computer-aided design software benefits from its switch to a cloud-based subscription model.

The company's shares rose about 3 percent in after-market trade as it also raised its full-year revenue growth forecast.

Chief Executive Carl Bass said the company is making progress in its transition to a more recurring, subscription-based business, adding about 121,000 subscriptions in the third quarter.

Subscription revenue rose 15 percent in the quarter.

Autodesk raised its revenue growth forecast to 9-10 percent from 7-9 percent for the year ending Jan. 31. The company forecast full-year adjusted profit of $1.15- $1.18 per share.

Analysts on average were expecting full-year profit of $1.19 per share on revenue of $2.47 billion, according to Thomson Reuters I/B/E/S.

Autodesk's flagship AutoCAD software is used by construction, engineering and manufacturing companies to design and simulate real-world performance of their products.

The company said it expected to add 325,000-375,000 net subscribers on a net basis this year, up from its earlier forecast of 200,000-250,000 net additions.

Autodesk's net income fell to $10.7 million, or 5 cents per share, in the quarter ended Oct. 31, from $57.6 million, or 25 cents per share, a year earlier.

Excluding items, the company earned 25 cents per share, above analysts' average estimate of 22 cents per share.

Revenue rose 11 percent to $618 million, breezing past analysts' average estimate of $601.9 million.

The stock closed at $58.41 on the Nasdaq. Up to Thursday's close, stock had gained about 16 percent this year.