Autodesk Inc (NASDAQ:ADSK) shares jumped in pre-market trading Friday after the company reported second quarter results that beat expectations.
The software company posted net losses of US$39.4mln, or 18 cents a share, for the quarter, compared with a loss of US$144mln , or 66 cents a share, a year ago.
Adjusted earnings per share came to 19 cents, ahead of analysts’ estimates of 16 cents.
Revenue increased to US$611.7mln from US$501.8mln last year against forecasts of US$634mln. Annualized recurring revenue (ARR) was up 28% to US$2.35bn.
For the third quarter, the company expects adjusted earnings of 24 cents to 28 cents a share on sales of US$635mln to US$645mln.
READ: Autodesk springs positive surprise with fourth-quarter results
For the year it predicts adjusted earnings of 87 cents to 95 cents on revenue of US$2.48bn to US$2.50bn. ARR is expected to grow between 28% and 30%.
“Autodesk reported a strong 2Q19, driven by across-the-board strength,” Baird Equity Research said.
“Key positives: 1) ARR better than expected +28% yr-yr, driven by continued upward inflection in ARPS; 2) Reaffirmed FY19 ARR guidance for +28-30% yr-yr.; 3) Upside to subscription expectations, which has been an issue for investors pondering the impact of the shift from subscriptions to Collections. After a few noisy quarters, ADSK’s strong, clean results are just what the doctor ordered and should renew confidence in the company’s ability to hit its transition targets. Maintain ‘outperform’ rating.”
Shares rose 10.7% to US$136.31 in pre-market trading.