Autodesk beats Q1 earnings targets; outlook light

Autodesk published first quarter financial results after the bell on Tuesday, starting the year off on a high note but headwinds are on the way.

The design software maker reported a net income of $19.1 million, or eight cents per share (statement).

Non-GAAP earnings were 30 cents per share on a revenue of $647 million, up nine percent year-over-year.

Wall Street was looking for earnings of 28 cents per share with $636.56 million in revenue.

The Bay Area-based company added 95,000 subscriptions during the quarter -- roughly half of which were new subscription types.

Autodesk CEO Carl Bass accredited the better-than-expected results to "good progress on our business model transition."

"Over the course of the next two years we expect to transition the vast majority of our offerings to subscription, which provides our customers with greater flexibility and a better user experience," Bass said in prepared remarks.

For the current quarter, Wall Street expects Autodesk to deliver earnings of 32 cents per share and $649.99 million in revenue.

But Autodesk followed up with a much softer Q2 revenue guidance range of $600 million to $620 million with non-GAAP earnings between 14 and 19 cents a pop.

Autodesk CFO Scott Herren chalked this up to a common line behind many missed targets and weak outlooks in tech this quarter.

"As we scan the economic environment, we've observed unevenness, particularly in key markets," Herren wrote. "Considering the current economic environment, coupled with persistent foreign currency headwinds, we've adjusted our business outlook for the fiscal year as we look to build on the early successes of our model transition."