12:57 PM EDT, 06/12/2024 (MT Newswires) -- Autodesk ( ADSK ) posted "solid" fiscal Q1 results but the company's billings fell short of expectations due to challenging comparisons, seasonal variations and the impact of foreign exchange rates, Oppenheimer said in a note Wednesday.

The company's fiscal Q1 results beat market expectations, with non-GAAP net income of $1.87 per share and revenue of $1.42 billion. Analysts polled by Capital IQ expected $1.77 and $1.40 billion. Autodesk ( ADSK ) maintained its fiscal 2025 revenue guidance of between $5.99 billion to $6.09 billion.

The brokerage said the transition from multi-year agreements to annual memberships is seen as an obstacle, with billings for the quarter trailing market expectations.

The company's Chief Executive Andrew Anagnost reassured investors regarding risks to the medium-term cash flow trajectory

and reaffirmed 2026 free cash flow estimates on the back of subscription growth and multi-year contracts, according to the note.

The firm said Autodesk ( ADSK ) is not ruling out a potential investigation by the US Securities and Exchange Commission even after an internal audit concluded that the company "will not be required to restate historical financials."

The investment firm has outperform rating on Autodesk's ( ADSK ) stock with a $275 price target.

Shares of the company were up more than 5% in recent trading.

Price: 222.55, Change: +11.05, Percent Change: +5.22