Autodesk Reports 15% Revenue Growth to $1.63 Billion, Net Income Declines

Autodesk, Inc. reported a 15% increase in total net revenue for the three months ended April 30, 2025, reaching $1.63 billion, compared to $1.42 billion in the same period last year. The growth was primarily driven by a significant rise in subscription revenue, which rose to $1.53 billion from $1.33 billion. However, net income decreased to $152 million, or $0.70 per diluted share, down from $252 million, or $1.16 per diluted share, in the prior year. The decline in profitability was attributed to increased operating expenses, which surged by 26% to $1.24 billion, largely due to restructuring costs and higher marketing and sales expenses.

In terms of operational metrics, Autodesk's recurring revenue remained stable at 97% of total net revenue, while the net revenue retention rate (NR3) improved to slightly above 110% on a constant currency basis. The company reported remaining performance obligations of $7.16 billion, a 3% increase from the previous quarter, indicating a solid pipeline of future revenue. The deferred revenue balance decreased by 5% to $3.93 billion, reflecting the timing of billing installments and seasonal trends.

Strategically, Autodesk has been focusing on enhancing its cloud offerings and transitioning to a new transaction model that allows for direct sales to customers, reducing reliance on distributors. The company recently acquired Payapps Limited, a cloud-based software platform for managing construction-related payments, which is expected to strengthen its Autodesk Construction Cloud services. Additionally, Autodesk launched new capabilities in Autodesk Forma, aimed at improving the design and planning processes in the architecture and construction sectors.

Geographically, revenue growth was notable across all regions, with the Americas contributing $725 million, up 17% year-over-year. The EMEA region saw a 17% increase to $627 million, while the Asia Pacific region grew by 6% to $281 million. The company continues to expand its market presence, with a focus on increasing direct sales, which accounted for 55% of total revenue in the latest quarter, up from 38% in the previous year. Looking ahead, Autodesk anticipates continued growth driven by its strategic investments in cloud technology and product innovation, despite potential challenges from global economic conditions and currency fluctuations.