Sector: Information Technology | Focus: Application Software
HQ: San Francisco, California
Financial Risks
Autodesk faces risks from global economic and political instability, including recessions, wars, and protectionism. International operations expose the company to currency fluctuations, regulatory changes, and potential collection issues. Competition, especially from disruptive technologies like AI, is a concern. Acquisitions and investments carry integration challenges and potential impairment charges. Subscription renewals are uncertain, and reliance on a few key solutions and distributors poses risks. Legal proceedings, including securities class action lawsuits and regulatory investigations, are also a significant concern. Finally, Autodesk's complex software and reliance on third-party vendors introduce security and operational risks.
Financial Upside
Autodesk's net revenue increased 11-12% in the three and nine months ended October 31, 2024, driven by subscription growth. Recurring revenue is high (97-98%). The company's net revenue retention rate (NR3) is strong (100-110%). Acquisitions, like Payapps and PIX, are expected to enhance product offerings and drive growth. The transition to annual billing for multi-year contracts, while impacting timing, is expected to be broadly neutral
