3D design software company Autodesk (NASDAQ: ADSK) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 17.1% year on year to $1.76 billion. Guidance for next quarter’s revenue was better than expected at $1.81 billion at the midpoint, 1.9% above analysts’ estimates. Its non-GAAP profit of $2.62 per share was 6.9% above analysts’ consensus estimates.
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Autodesk (ADSK) Q2 CY2025 Highlights:
- Revenue: $1.76 billion vs analyst estimates of $1.72 billion (17.1% year-on-year growth, 2.3% beat)
- Adjusted EPS: $2.62 vs analyst estimates of $2.45 (6.9% beat)
- Adjusted EBITDA: $682 million vs analyst estimates of $684.4 million (38.7% margin, in line)
- The company lifted its revenue guidance for the full year to $7.05 billion at the midpoint from $6.96 billion, a 1.3% increase
- Management raised its full-year Adjusted EPS guidance to $9.89 at the midpoint, a 2.9% increase
- Operating Margin: 25.2%, up from 22.8% in the same quarter last year
- Free Cash Flow Margin: 25.6%, down from 34% in the previous quarter
- Billings: $1.68 billion at quarter end, up 35.9% year on year
- Market Capitalization: $61.18 billion
"For more than a decade, Autodesk has been at the forefront of innovation — in BIM, SaaS, generative design, and now in generative AI. We have been building industry-specific foundation models and products capable of understanding and reasoning about 2D and 3D geometry, design and make data, complex structures, and even physical behavior," said Andrew Anagnost, Autodesk president and CEO.
Company Overview
Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk (NASDAQ: ADSK) provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Autodesk grew its sales at a 11.7% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the software sector, which enjoys a number of secular tailwinds. Luckily, there are other things to like about Autodesk.
This quarter, Autodesk reported year-on-year revenue growth of 17.1%, and its $1.76 billion of revenue exceeded Wall Street’s estimates by 2.3%. Company management is currently guiding for a 15% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 11.2% over the next 12 months, similar to its three-year rate. This projection is above average for the sector and implies its newer products and services will help sustain its historical top-line performance.
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Billings
Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
Autodesk’s billings punched in at $1.68 billion in Q2, and over the last four quarters, its growth was fantastic as it averaged 28.8% year-on-year increases. This alternate topline metric grew faster than total sales, meaning the company collects cash upfront and then recognizes the revenue over the length of its contracts - a boost for its liquidity and future revenue prospects. 
Customer Acquisition Efficiency
The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability.
Autodesk’s recent customer acquisition efforts haven’t yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. The company’s inefficiency indicates it operates in a competitive market and must continue investing to grow.
Key Takeaways from Autodesk’s Q2 Results
We were impressed by how significantly Autodesk blew past analysts’ billings expectations this quarter. We were also glad its EPS guidance for next quarter exceeded Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 11.3% to $321.43 immediately after reporting.
Autodesk may have had a good quarter, but does that mean you should invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.
