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Design Software Q3 Earnings: Autodesk (NASDAQ:ADSK) Simply the Best

StockStory - Thu Jan 18, 12:30AM CST

ADSK Cover Image

As Q3 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the design software stocks, including Autodesk (NASDAQ:ADSK) and its peers.

The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse might still be more of a buzzword than a real thing, what is real is the demand for the tools to create these experiences, whether they are games, 3D tours or interactive movies.

The 8 design software stocks we track reported a weak Q3; on average, revenues beat analyst consensus estimates by 1.2% while next quarter's revenue guidance was 1.5% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but design software stocks held their ground better than others, with the share prices up 13.8% on average since the previous earnings results.

Best Q3: Autodesk (NASDAQ:ADSK)

Founded in 1982 by John Walker and growing into one of the industry's behemoths, Autodesk (NASDAQ:ADSK) makes computer-aided design (CAD) software for engineering, construction, and architecture companies.

Autodesk reported revenues of $1.41 billion, up 10.5% year on year, topping analyst expectations by 1.9%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but underwhelming revenue guidance for the next quarter.

"Autodesk AI and Platform Services will enable Autodesk, our customers, and partners to build more valuable, data driven, and connected products and services in our industry clouds and on our platform," said Andrew Anagnost, Autodesk president and CEO.

Autodesk Total Revenue

The stock is up 9.7% since the results and currently trades at $238.47.

Is now the time to buy Autodesk? Access our full analysis of the earnings results here, it's free.

Adobe (NASDAQ:ADBE)

One of the most well-known Silicon Valley software companies around, Adobe (NASDAQ:ADBE) is a leading provider of software as service in the digital design and document management space.

Adobe reported revenues of $5.05 billion, up 11.6% year on year, in line with analyst expectations. It was a mixed quarter for the company, with optimistic revenue guidance for the next year but full-year revenue guidance missing analysts' expectations.

Adobe Total Revenue

The stock is down 4.6% since the results and currently trades at $595.

Is now the time to buy Adobe? Access our full analysis of the earnings results here, it's free.

Weakest Q3: ANSYS (NASDAQ:ANSS)

Used to help design the Mars Rover, Ansys (NASDAQ:ANSS) offers a software-as-a-service platform that enables simulation for engineering and design.

ANSYS reported revenues of $458.8 million, down 2.9% year on year, falling short of analyst expectations by 1.7%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.

The company announced that it has agreed to be acquired by Synopsys, with Ansys shareholders set to receive $197 in cash and 0.345 shares of Synopsys common stock per Ansys share. This equates to a $390 per share offer price. The resulting enterprise value is approximately $35 billion, making for a large deal in semis.

ANSYS had the slowest revenue growth in the group. The stock is up 18% since the results and currently trades at $328.49.

Read our full analysis of ANSYS's results here.

PTC (NASDAQ:PTC)

Used to design the Airbus A380 and Boeing 787 Dreamliner commercial airplanes, PTC’s (NASDAQ:PTC) software-as-service platform helps engineers and designers create and test products before manufacturing.

PTC reported revenues of $546.6 million, up 7.6% year on year, falling short of analyst expectations by 2.3%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.

PTC had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is up 23.1% since the results and currently trades at $170.99.

Read our full, actionable report on PTC here, it's free.

Procore Technologies (NYSE:PCOR)

Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore Technologies (NYSE:PCOR) offers a software-as-service project, finance and quality management platform for the construction industry.

Procore Technologies reported revenues of $247.9 million, up 33% year on year, surpassing analyst expectations by 6.1%. It was a mixed quarter for the company, with decelerating customer growth and underwhelming revenue guidance for the next quarter.

Procore Technologies scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The company added 363 customers to reach a total of 16,067. The stock is up 11.7% since the results and currently trades at $67.21.

Read our full, actionable report on Procore Technologies here, it's free.

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The author has no position in any of the stocks mentioned

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