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Investors Should Not Overlook This Software Company

By Jose Najarro – Dec 1, 2021 at 2:00AM

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Autodesk's stock price is down 20% from its all-time highs.

Today's video focuses on Autodesk (ADSK 3.25%), recent news affecting the company, and its earnings report released on Nov. 23. Here are some highlights from the video.

  1. Autodesk reported $1.13 billion in revenue, up 18% year over year (YoY), and a free cash flow of $257 million. Autodesk saw double-digit growth in all of its product solutions and in all of the geographic regions it operates in. 
  2. Autodesk makes most of its money from yearly subscriptions. Still, the hefty price of the annual service pushes away potential customers who do not need to use Autodesk solutions every day. In September, Autodesk announced a new consumption model, opening the door to new customers. 
  3. Management mentioned that supply chain issues are significant headwinds for Autodesk. Supply chain issues are causing a delay in building materials, forcing delays in construction projects and new projects being signed, reducing the short-term needs of Autodesk solutions. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of Nov. 29, 2021. The video was published on Nov. 29, 2021.

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Autodesk. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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