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Autodesk followed a weak Q2 with a poor Q3, but yoy comparisons also made depressing reading. Describing the results as “disappointing” the company is now looking at how it needs to change its financial model in the light of the weak macroeconomic environment and is holding back on longer-term forecasts (to 2015) as a result.
On a yoy basis Q3 revenue (to October 31 2012) was a shade off at $548m vs $549m and was below guidance of $550m to $570m, but net revenue plummeted from $72.8m to $29.3m. Deferred revenue was up 15% to $717m though. The operating margin shifted from 16% to 6%. The company is taking the inevitable hit from the transition to the cloud and moves to take advantage of opportunities in the mobile market (see Autodesk: mobile & cloud transition inflicts widespread pain) but the main culprit is a straightforward drop demand for products. Although there were “pockets of relative strength” in Northern Europe, US and Russia, demand dropped in most regions and especially in emerging markets. EMEA revenue dropped 3% (+3% cc) – with that background it is hard to see the UK coming in with positive growth. The full year story will probably make for hard reading and the difficulties are likely to spread into the new financial year.
