Autodesk shares fall as CFO changes offset solid results

The Key Takeaways

• Autodesk posted better-than expected adjusted profits and sales. However, shares dropped as the software company announced it was replacing its Chief Financial Officer.
• Janesh Mourjani will replace Betsy Rafael as interim CFO at the end fiscal year.
• Rafael moved into the post in May following an audit committee report about the company's accounting practices.

Autodesk’s (ADSK), shares dropped 6% on Wednesday after questions were raised about the impact of the Chief Financial Officer change.

The company announced a third-quarter fiscal 2025 adjusted earnings per Share (EPS) of 2.17 with revenues increasing 11% from the prior year to 1.57 billion. Visible Alpha polled analysts and both exceeded expectations, though GAAP earnings per share of $1.27 was slightly below the consensus. 

Billings are up 28% at $1.54 billion. The revenue from Subscription Plans increased 11% and reached $1.46 billion. Design revenue increased 9%, to $1.30 Billion. Make revenue increased 28%, to $171 Million.

Interim CFO Besty Rafael said "macroeconomic, policy, and geopolitical challenges, and the underlying momentum of the business, were consistent with the last few quarters with continued strong renewal rates and headwinds to new business growth." 

Interim CFO Being Replaced

Rafael’s departure was announced by the company in another release. Janesh moorjani replaces her. She was the CFO and COO of Elastic N.V.

Rafael took over the position of CEO in May after Autodesk announced results from an internal investigation on its non-GAAP and free cash flow operating margin practices. The audit committee recommended some measures to remedy the situation in that report. “reviewing certain processes around financial communications and disclosures; assessing certain company organizational functions and responsibilities; and adopting and enhancing policies and processes related to the matters investigated.”

Autodesk's estimates for current-quarter adjusted EPS of $2.10 to $2.16 and revenue of $1.623 billion to $1.638 billion were basically in line with expectations.

Despite today's decline, shares of Autodesk are about 23% higher year-to-date.

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