Shares of Autodesk Inc. (NASDAQ:ADSK) plunged Friday despite the California-based design-software provider posting first quarter earnings that beat analyst estimates.
The AutoCAD software maker’s bleak forecast overshadowed a beat on both first-quarter revenue and profit.
Autodesk’s shares were down nearly 5% on Friday as it forecast second-quarter profit below Wall Street expectations.
For the quarter ended March 31, the San Rafael, California software designer booked earnings of US$0.06 per share on revenue of US$559.9mln. The consensus earnings estimate was US$0.03 per share on revenue of US$557.2mln. Revenue grew 15.3% on a year-over-year basis.
Autodesk forecast second-quarter adjusted profit between US$0.13 to US$0.16 per share on revenue of US$595.0mln to US$605mln. Analysts on average were expecting a profit of US$0.18 per share.
Autodesk, which has been operating at a loss since 2015, has been transitioning to a subscription-based model in a bid to generate more revenue. It competes with rivals like Adobe Systems and Ansys for design software customers.
Autodesk's subscription revenue more than doubled to US$350.4mln in the reported quarter, above estimates of US$328.9mln.