07:01 AM EDT, 08/19/2024 (MT Newswires) -- (Updates to include comments from an Autodesk ( ADSK ) spokesperson in the last paragraph.)

Autodesk ( ADSK ) continued to employ a controversial sales strategy despite pledging to stop and ignored internal warnings about the risks involved, Bloomberg reported late Thursday, citing internal documents.

Autodesk ( ADSK ) offered discounts to some corporate clients for large upfront payments to boost cash flow, a practice it promised to end in 2021 but continued to meet financial targets.

Autodesk ( ADSK ) employees warned the practice of offering discounts and other concessions could reduce long-term revenue and increase the chance of mistakes in financial modeling while making it harder for salespeople to do their jobs, the report said.

Autodesk's ( ADSK ) accounting issues, revealed in April, led to the replacement of CFO Debbie Clifford. Activist hedge fund Starboard Value urged the company's board for further leadership changes, including replacing Chief Executive Officer Andrew Anagnost.

A spokesperson for Autodesk ( ADSK ) told MT Newswires that the board audit committee "conducted a thorough investigation that resulted in no financial restatement or adjustment of any financial statements." The spokesperson also said the company is "transitioning away" from upfront billings but will not discontinue the practice entirely as it considers customer preferences.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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