Market Insights

Autodesk reported Q2 2025 results on August 29, 2024, demonstrating a robust financial performance with a 13% increase in revenue year-over-year in constant currency. CEO Andrew Anagnost highlighted the company’s sustained momentum, stating, “Once again, opportunity, resilience, and discipline underpinned our performance.” He credited the successful rollout of the new transaction model in North America, which began in June, saying this initiative has enabled Autodesk to better connect workflows across various sectors, particularly Architecture, Engineering, and Construction, facilitated by ongoing digital transformation trends.

The call noted macroeconomic challenges, including geopolitical factors and industry adjustments like the Hollywood strikes, which impacted their media and entertainment division. Despite these factors, the company’s diversified subscription model and product lineup have proven resilient. Anagnost stated, “The underlying momentum of the business remains consistent with previous quarters,” as depicted by increased product usage and record bid activity on building connected solutions.

Interim CFO Betsy Rafael elaborated on financial metrics, revealing total revenue rose by 12% in constant currency, with strong contributions from the AEC and manufacturing sectors—up 15% and 17% respectively. She remarked, “Q2 was a strong quarter,” despite some softness in the media space. Rafael also explained changes in their billing structure, indicating that the transition to annually billed contracts would eventually create a tailwind for revenue and cash flow.

Looking ahead, Autodesk raised their full-year guidance, anticipating revenue between $6.08 billion and $6.13 billion. Rafael noted the impact of the new transaction model on reported billings, which is expected to yield a 5 to 6 percentage point benefit in fiscal 2025. She confidently stated, “Our sustained momentum in the second quarter and the smooth launch of the new transaction model reduces the likelihood of our more cautious forecast scenarios.”

The company continues to invest strategically in cloud and AI technologies, positioning itself ahead of competition while enhancing customer relationships. Anagnost underscored this, saying, “We remain focused on enabling that transition through our industry clouds.” As they look to the future, Autodesk is committed to sustaining increased margins and returning value to shareholders, with ongoing share buybacks projected to accelerate in the latter half of the fiscal year.

In summary, Autodesk's strong quarterly performance reflects effective leadership, strategic investments, and adaptability to market conditions, all set against an optimistic growth outlook.