Autodesk (ADSK), which offers a suite of 3D computer-aided design (CAD) software and tools primarily for architects and engineers, is set to report Q1 (Apr) results today after the close with a call to follow at 5pm ET. Last quarter, ADSK reported at 16:01, or one minute after the close, so it may be right after the close. 

The CapitalIQ consensus estimate for Q1 (Apr) EPS is $0.47. The revenue consensus estimate is $740.1 mln.

On March 28, ADSK reaffirmed its prior guidance for non-GAAP EPS of $0.44-0.48 and revenue of $735-745 mln. Full year guidance was also reaffirmed at: non-GAAP EPS of $2.71-2.90 and revenue of $3.25-3.30 bln. Note: ADSK typically guides for revenue and EPS in the press release for the next quarter and full year. 

Its important to note that the company views ARR (annualized recurring revenue) as the best proxy for measuring its progress and the overall health of the business. So that will be a metric to watch. Its current FY20 guidance is for ARR of $3.50-3.55 bln. ADSK does not guide for ARR on a quarterly basis. However, last quarter, it reported ARR of $2.75 bln, subscription plan ARR of $2.20 bln and total subs at 4.33 mln at quarter-end. 

Of note, ADSK has been transitioning its business away from maintenance revenue and toward recurring revenue for its core design platforms. With less than 20% of revenue coming from maintenance, ADSK says it's effectively finished with its business model transition. Its core design platforms have been helping customers undergo digital transformations, which ADSK says offers an ongoing tailwind to its business. 

Autodesk has been active on the M&A front and has been beefing up its construction offering. In December 2018, it closed on its acquisition of PlanGrid, a provider of construction productivity software, for $875 mln net of cash. It subsequently acquired BuildingConnected for $275 mln. This deal added bid management, risk analysis and other preconstruction offerings to Autodesk's construction portfolio. And earlier in 2018, ADSK acquired Assemble Systems, one of the first companies to recognize the power of BIM for pre-construction planning. As you can see, it's clear that ADSK has been aggressively pursuing the construction market. 

This quarter will be our first look at FY20, which AutoDesk has been quite bullish on in recent quarters, especially with its transition from maintenance revenue to core platforms pretty much all done. Also, ADSK has been stepping on the gas beefing up its construction platforms, so that should start to all come together in FY20. ADSK sees construction as a big growth area. 

ADSK has a great track record relative to consensus as it has beaten EPS estimates for 19 straight quarters. In Q4 (Jan), ADSK beat by $0.04 and reported nice revenue upside. 


On a final note, the stock has made quite a move in recent months, going from $120 in late December to near $170 now. However, it has stalled out a bit over the past six weeks or so, trading mostly sideways and it's down 3.5% today. It seems like investors want to see how FY20 starts before pushing the stock another leg higher.

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