Autodesk (ADSK 107.00, +11.17) has spiked 11.7% in pre-market after beating expectations and reaffirming its guidance for the full year.
The software company that caters to architects, engineers, manufacturers, and construction companies reported a better than feared first quarter loss of $0.16 per share on revenue that declined 5.1% year-over-year to $485.70 million, which was ahead of expectations.
The decline in revenue was due to the company's transition to a subscription business model, which recognizes revenue ratably instead of up front. New offerings tend to have a lower initial purchase price, which contributed to the year-over-year decline in sales. It is worth remembering that Autodesk's transition to a subscription model is in line with changes made by industry heavyweights like Adobe (ADBE 134.54, +0.21) and Microsoft (MSFT 67.78, +0.07).
Subscription plan (previously known as new model) subscriptions grew by 233,000 sequentially to 1.32 million while Maintenance plan subscriptions declined by 47,000 to 1.97 million. Total subscriptions increased by 186,000 on a sequential basis, to 3.29 million.
Annualized recurring revenue from Subscription plans jumped 103.0% year-over-year to $692 million. Annualized recurring revenue from Maintenance plans declined 7.0% year-over-year to $1.05 billion. Total annualized recurring revenue was up 18.0% year-over-year to $1.74 billion.
Total recurring revenue made up 90.0% of first quarter revenue, up from 72.0% of revenue one year ago. Deferred revenue rose 18.0% year-over-year to $1.80 billion.
Revenue in the Americas declined 3.0% to $210 million while Europe, Middle East, and Africa revenue fell 6.0% to $190 million. Revenue in the Asia-Pacific region declined 6.0% to $86 million.
Looking ahead, the company expects that its second quarter loss will be between $0.18 and $0.14 per share while revenue is expected between $488 million and $500 million. For the full year, the company reaffirmed its expectations for a loss between $0.73 and $0.56 per share on revenue between $2.00 billion and $2.05 billion.