Autodesk's first quarter financial results topped analyst expectations as the company said new business is accelerating and its subscription model is strong.
Autodesk said Q1 net income was $155.6 million, or 70 cents per share. The company's non-GAAP diluted EPS was $1.03 on revenue of $989 million, up 12% year-over-year.
Wall Street was looking for earnings of 94 cents per share on revenue of $965.1 million.
Recurring revenue represented 98% of Autodesk's total Q1 revenue. Meanwhile, total billings increased 10% to $974 million. The company said its cash flow from operating activities was $336 million, with free cash flow of $316 million.
For Q2, Autodesk is expecting diluted EPS to range from $1.08 to $1.14, with revenue in the range of $1.045 billion to $1.06 billion. Wall Street is looking for Q2 earnings of $1.13 per share on revenue of $1.03 billion.
For the year, Autodesk expects earnings of $4.67 to $4.97 per share on revenue of $4.305 billion to $4.385 billion. Analysts expect the company to report fiscal earnings of $4.94 per share and revenue of $4.31 billion.
"Momentum in our end markets and customer adoption of cloud services is building," said Debbie Clifford, Autodesk CFO. "We are raising our FY22 revenue guidance to reflect a partial year contribution from acquisitions and remain on track to achieve our FY23 financial goals."
Shares of Autodesk were up around 1% after hours.