AD

Autodesk, Inc. stock research

Jul 31, 2024

FY2025 Q2

Autodesk (ADSK) Gross Margin — Quarter Ended Jul 31, 2024

Revenue increased compared to both the prior quarter and the same quarter last year, driving a higher gross profit. Cost of revenue also rose over both periods, but gross margin improved slightly from the prior quarter and remained nearly stable versus the year-ago quarter.

Gross margin takeaway

Quarter ended Jul 31, 2024 · FY2025 Q2

Revenue increased compared to both the prior quarter and the same quarter last year, driving a higher gross profit. Cost of revenue also rose over both periods, but gross margin improved slightly from the prior quarter and remained nearly stable versus the year-ago quarter.

  • The strongest observable margin driver is the increase in subscription revenue, which grew faster than total cost of revenue, supporting the higher gross margin. An item to monitor is the growth in amortization of developed technologies within cost of revenue.
  • Compared to the prior quarter, gross margin was higher, while compared to the same quarter last year it was stable. Revenue and gross profit were higher in both comparisons, while cost of revenue was moderately higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

90.7%

Gross profit

$1.4B

Revenue

$1.5B

Cost of revenue

$140.0M

Quarter-over-quarter change

+0.4 pts

Year-over-year change

+0.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Oct 31, 2023$1.4B$1.3B$127.0M91.0%
Jan 31, 2024$1.5B$1.3B$130.0M91.2%
Apr 30, 2024$1.4B$1.3B$137.0M90.3%
Jul 31, 2024$1.5B$1.4B$140.0M90.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Apr 30, 2024

+0.4 pts

Year-over-year change

Jul 31, 2023

+0.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the increase in subscription revenue, which grew faster than total cost of revenue, supporting the higher gross margin. An item to monitor is the growth in amortization of developed technologies within cost of revenue.

Compared to the prior quarter, gross margin was higher, while compared to the same quarter last year it was stable. Revenue and gross profit were higher in both comparisons, while cost of revenue was moderately higher.

Monitor the trajectory of amortization of developed technologies, as it increased compared to both the prior quarter and the year-ago quarter within cost of revenue.