Factors Driving Deferred Revenue for Autodesk

Leading 3D design, engineering, and entertainment software provider Autodesk (ADSK) has continued to witness strong growth in its deferred revenue over the past few quarters mainly triggered by its transition from a maintenance-based to a subscription-based business model. The ongoing transition started in June 2017, and it led to an increase in subscription plan billings, thereby driving deferred revenue for the company. In the last five quarters, Autodesk’s deferred revenue has risen at a CAGR (compound annual growth rate) of 2.3%, whereas its unbilled revenue during the same period has risen at a CAGR of 81.6%.