Autodesk, Inc. (ADSK) stock dropped 13% today after the software application company reported earnings for the third quarter of its fiscal year 2022.
Total revenue increased 18% to $1.12 billion, while Non-GAAP operating margin was up 2 points to 32%.
Strong Subscriber Growth
Autodesk reported growing demand in the third quarter, with strong new subscriptions growth and renewal rates.
“Our customers continue to embrace and prioritize digital transformation to drive growth, efficiency and sustainability, generating strong demand for Autodesk’s platform,” said Andrew Anagnost, Autodesk president and CEO.
“We are rapidly innovating and optimizing our business to enable more customers to experience our ecosystem, and realize the opportunities ahead.”
Subscription plan revenue came in at $1.07 billion, an increase of 21%.
Supply Chain Pressure
Despite the strong revenue numbers, Autodesk faced a number of supply chain problems in the quarter.
Debbie Clifford, Autodesk CFO, commented, "Supply chain disruption and resulting inflationary pressures, a global labor shortage, and the ebb and flow of COVID, are impacting the pace of our recovery and outlook.”
Even with the global labor shortage, Autodesk posted revenue increases across every major segment, with Architecture, Engineering, and Construction revenues growing a whopping 22% to $511.1 million for the quarter.