Civil and industrial construction software maker Autodesk has released its third-quarter fiscal 2023 earnings report.
The U.S. company earned $1.28 billion in revenue for the three-month reporting period that closed October 31, calendar year 2022, a 14% year-over-year increase. Net income during that time rose from $137 million to $198 million.
Adjusted earnings, which exclude one-time expenses and earnings, came in at $1.7 per share. Wall Street projected the same profit on sales of $1.281 billion.
Autodesk earned more than $1.19 billion on subscriptions in August-October 2022, compared with $1.04 billion a year earlier. Support revenue during that time dropped from $18 million to $16 million.
Autodesk has abandoned perpetual licenses for most of its products, moving to the sale of software by subscription. It provides customers with flexible payment terms, the ability to use the product only when they need it, according to the manufacturer’s website. As well as access to the latest versions, add-ons and the same cloud services as with Maintenance Subscription perpetual network licenses. Because of this business model, almost all revenues are recurring.
The report also shows that sales of the Architecture, Engineering and Construction family of products rose 13% to $575 million in the third fiscal quarter. Sales of AutoCAD solutions increased 10% to $354 million.
Autodesk earned about $447 million in revenue in the U.S. last fiscal quarter, up 17% from a year ago. In EMEA, revenue was up 10% to $476 million. The company’s sales in Asia-Pacific were up 14%, to $263 million.
By the end of October 2022, orders from Autodesk totaled about $1.36 billion, up 16% from a year ago. Deferred revenue rose 13% to $3.78 billion.
Earlier in 2022, Autodesk announced the suspension of activities in Russia because of the war in Ukraine. In its reports the company specified that it was leaving the Russian market.
At the end of the current fiscal year, the company expects revenues in the range of 5.57 billion to 5.67 billion dollars with adjusted earnings of 6.56-6.62 dollars per share.Thanks to spending on SaaS marketing, the company managed to enter the list of the 50 largest SaaS-companies.
