Autodesk Media & Entertainment Revenue Drops 8% in Q1 FY 2014, Readies Cloud-Based Launch

Posted by Joe Zaller
May 17 2013

Autodesk reported that its Q1 FY 2014 revenue from its Media and Entertainment segment (M&E) was $47m, a decline of 8% versus the same period a year ago, and flat compared to the previous quarter.

M&E gross margins for the quarter were $37m (79%), down from 82% for the same period a year ago, and flat compared to the previous quarter.

Autodesk’s M&E revenue has been in decline for the past several quarters — something the company has said for the past year that it expects to continue as it incorporates greater functionality into its design suites.

The company also plans to introduce new revenue models for M&E customers, including cloud-based rental.

On the company’s conference call with equity analysts, company CEO Carl Bass said that Autodesk will soon begin rolling out a cloud-based suite of products for applications for various markets including M&E, whose customers company believes is ideally suited for this approach. “I think that’s just the nature of the work within the industry is more project-based. The economic structure of the industry revolves around projects in both of those industries. I think they’re going to be far more attractive in Media and Entertainment than they will in Manufacturing.”

“Starting this summer, we will roll out term-based or rental offerings of some of our suites and select individual products. These rental offerings of our desktop products are designed to give our customers even more flexibility in how they utilize our products and will provide us with new ways to take advantage of new market opportunities. These offerings are based on a significantly different model, and we expect adoption and consumption of our cloud and rental offerings to increase gradually over time.”

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Related Content:

Press Release: Autodesk Reports First Quarter Results

Autodesk Q1 FY 2014 Earnings Call Transcript

Pervious year: Autodesk Media & Entertainment Revenue Slips 5 Percent in Q1 2012

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