ADSK

Autodesk is mostly associated with industrial design. The company has been developing industrial design solutions for many years. Professional schools are educating students on Autodesk software products. The company has successfully adopted to the modern realities and introduced the subscription payment business model. This move has made its services readily available. It has become accessible to those who would not allow for one-time license fees for a long period of time.

The demand for the company’s products is sustainable, business margins are improving, while net cash flows allow for the buy-back of its own shares. The company conducted a $464 million buy-back in the financial Q1 2022. This is certainly not enough for stock prices to grow at the same pace as its younger peers. This is more a value stock that may help to survive in turbulent times. The return to $250 per share is expected, but no super profit should be considered.

The company’s revenues grew 18% year-on year to $1.17 billion for the Q1 2022. The major business segment Architecture, Engineering, and Construction that is responsible for 45% of the total revenues has reported that it signed its second largest ever enterprise agreement with an infrastructure company. A new product Bridge has been launched targeting the subcontractor audience. The suspension of the company’s operations in Russia would cost $115 million per year, but it has caused minor damage to the company as it has almost $5 billion annual revenues.

The operational margin grew to 34%, and operational profit went up by 42% year-on-year to $397 million in the Q1 2022. Free cash flows rose by 34% year-on-year to $422 million.