Autodesk (ADSK) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue grew 12% year-over-year to $1.42 billion, with 97% from recurring revenue streams and strong performance across product lines and geographies.

• GAAP operating margin rose to 21%, up 4 points; non-GAAP operating margin reached 35%, up 3 points.

• Net income increased to $252 million from $161 million in the prior year quarter, with diluted EPS of $1.16 compared to $0.75.

• Free cash flow for the quarter was $487 million, down from $714 million in the prior year period.

• Audit Committee investigation concluded with no restatement required; leadership transition underway with Betsy Rafael as Interim CFO.

Financial highlights

• Subscription revenue grew 11% year-over-year to $1.33 billion; maintenance revenue declined 21% to $11 million.

• AEC revenue was $674 million, up 16% year-over-year; Manufacturing $268 million, up 9%; AutoCAD/AutoCAD LT $534 million, up 13%; Media & Entertainment $71 million, flat.

• Americas revenue: $619 million (up 12%), EMEA: $534 million (up 13%), APAC: $264 million (up 9%).

• Direct revenue increased 20% to $537 million, now 38% of total revenue.

• Free cash flow margin was 34% of revenue.

Outlook and guidance

• FY25 revenue guidance: $5.99–$6.09 billion, up 9–11%; non-GAAP operating margin expected at 35–36%; GAAP at 21–22%.

• FY25 free cash flow expected at $1.43–$1.5 billion; billings up 12–15%.

• Q2 FY25 revenue guidance: $1.475–$1.49 billion; GAAP EPS $1.12–$1.18; non-GAAP EPS $1.98–$2.04.

• Net revenue retention rate projected at 100–110% for FY25 at constant currency.

• Rule of 40 framework goal of 45% or more remains in place.