Autodesk Ends FY23 on a High Note

Autodesk recently released its Q4 and FY23 report, showing a continued increase in revenue.

(Image courtesy of Autodesk.)

(Image courtesy of Autodesk.)

After reaching a record-breaking Q2 FY23, Autodesk stayed on that trajectory for the remainder of the year. The fourth quarter saw a 9 percent increase over the third quarter while the company finished out FY23 with total revenue of $5.0 billion, a 14% increase over 2022 results.

“Overall, the demand environment in Q4 remained consistent with Q3 with the approaching transition from up-front to annual billings for multi-year contracts and a large renewal cohort, providing a tailwind to billings and free cash flow,” said Debbie Clifford, Autodesk CFO. “We continue to develop broader strategic partnerships with our customers, closing our largest deal to date during the quarter. Our strong momentum and competitive performance set us up well for fiscal 24.”

Three key areas that saw increases in both the last quarter and end-of-year results were Design, Make and Subscription businesses. Design—including AutoCAD, Revit, Inventor and Maya—saw a quarterly increase of 13 percent and an annual increase of 9 percent, accounting for $1.11 billion of 2023 revenue. Those numbers fall in line with the rising use of software in the architecture, engineering and construction (AEC) industry, which accounted for $2.78 billion of Autodesk’s business in FY23.

Falling in line with the latest trends, the Make business—including Fusion 360, ShotGrid, Autodesk Build and BuildingConnected—soared to new levels. As 3D CAD software is expected to reach $13.5 billion by 2026, it comes as no surprise that Autodesk’s Make revenue for the fourth quarter was $119 million, a 20 percent increase. Overall, the Make revenue increased by 24 percent for the year, compared to 2022.

Since the company moved to subscription-based plans, it has seen a significant rise in revenue. The ability to have flexibility and access to software from different devices anytime and anywhere has made it possible for small- and medium-sized businesses to use different software. Total subscriptions climbed from 702,000 in FY2022 to 6.74 million for FY2023.

While a number of factors play into the increased revenue, the focus on innovation and bringing in other technologies have allowed Autodesk to provide customers with many more offerings with better usability. To further push the boundaries of digital manufacturing, Autodesk has had several acquisitions over the past few years, such as ProdSmart.

Always focused on building its AEC offerings, the company is in the works to acquire UNIFI, a cloud software solution. The deal, expected to close by July 31, will enable customers to more easily organize and manage digital assets while loading BIM content quicker than ever.

“As we deliver next-generation technology and services to our customers, the pace of transformation within and between the industries we serve will accelerate, generating large new growth opportunities for Autodesk,” said Andrew Anagnost, Autodesk president and CEO. “We started seeing the shift toward connected digital workflows in the cloud in product design and manufacturing, then in architecture, followed by building engineering and more recently construction. And we are now seeing growing momentum with owners.”