(Reuters) – Autodesk forecast full-year revenue above market estimates on Tuesday, in a sign that client spending on its design software remains resilient in an uncertain economy.
Shares of the San Francisco-based company rose 2.8% after market, as it also posted higher revenue and profit in the third quarter.
The company has been benefiting from higher sales and recurring revenue as clients in the construction sector look to optimize their industrial design software despite high borrowing costs.
Analysts see the backlog for construction projects contributing to healthy demand for design tools in 2023.
Autodesk, whose AutoCAD software is used by construction, engineering and manufacturing companies, expects full-year revenue to be in the range of $5.45 billion to $5.47 billion, compared with LSEG estimates of $5.43 billion.
It also expects full-year adjusted earnings per share to be between $7.43 and $7.49, versus analysts’ average estimate of $7.46.
The company’s portfolio, which also includes software Revit and Fusion 360, caters to diverse end-market customers.
Its subscription plan sales surged 11% during the quarter.
Autodesk’s architecture, engineering and construction segment reported a 17% rise in revenue from a year earlier to $675 million.
Its overall revenue for the third quarter rose 10% to $1.41 billion.
On an adjusted basis, the company earned $2.07 per share, compared with $1.70 per share a year ago.
Over the last couple of months, Autodesk announced its agreement to acquire simulation software developer Flexsim as well as its partnership with electronic design automation firm Cadence Design Systems, in an attempt to shore up its product offerings.
(Reporting by Zaheer Kachwala and Pritam Biswas in Bengaluru; Editing by Shilpi Majumdar)
