SAN FRANCISCO - Autodesk, Inc. (NASDAQ: NASDAQ:ADSK) announced today that its internal investigation into the company's free cash flow and non-GAAP operating margin practices, originally disclosed on April 1, 2024, is still underway.
The Audit Committee of the Board of Directors, with the aid of external advisors, is conducting the investigation and has stated that the issues under review do not affect Autodesk's previously issued financial statements or the February 29, 2024, earnings release.
Due to the ongoing investigation, Autodesk will not meet the 15-day extension period for filing its Annual Report on Form 10-K for the fiscal year that ended on January 31, 2024. The company anticipates receiving a notice from The Nasdaq Stock Market indicating non-compliance with the timely filing requirement for continued listing under Nasdaq Listing Rule 5250(c)(1).
This notice is not expected to immediately impact the trading of Autodesk's common stock on the Nasdaq Global Select Market.
Autodesk plans to submit a compliance plan to Nasdaq within the 60-day period after receiving the non-compliance notification. Nasdaq may allow the company up to 180 days from the Form 10-K's original due date to regain compliance. Autodesk aims to fulfill Nasdaq's listing rules as soon as possible.
The press release also includes forward-looking statements regarding the expected timing and outcomes of the internal investigation and the potential consequences of non-compliance with Nasdaq's listing rules. Autodesk cautions that factors such as new findings in the investigation or delays in the review process could materially affect these forward-looking statements.
This news is based on a press release statement from Autodesk, which is currently working to resolve the investigation matters and regain compliance with Nasdaq's listing requirements.
InvestingPro Insights
Amid the ongoing internal investigation at Autodesk, Inc. (NASDAQ: ADSK), the company’s financial health and market performance continue to be of interest to investors and analysts.
According to real-time data from InvestingPro, Autodesk boasts a robust gross profit margin of 91.58% over the last twelve months as of Q4 2024, reflecting the company's impressive ability to retain revenue after the cost of goods sold is accounted for. This high margin is a testament to Autodesk's operational efficiency and pricing strategy.
The market has responded to Autodesk’s situation with a degree of caution, as evidenced by a 3.28% dip in the 1-month price total return. However, the longer-term perspective shows a more positive trend, with a 26.32% increase in the 1-year price total return, indicating that investors may be considering the company's historical performance and potential for recovery post-investigation.
InvestingPro Tips highlight that Autodesk is trading at a high earnings multiple, with a P/E ratio of 54.27, which suggests that the market has high expectations for the company's future earnings. Additionally, analysts have revised their earnings downwards for the upcoming period, which investors should consider as they assess the potential impact of the investigation on future performance.
For those interested in a deeper analysis, Autodesk has 15 additional InvestingPro Tips available, which can provide further insights into the company's valuation, debt levels, and analysts' profitability predictions. To explore these insights, visit InvestingPro and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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