Autodesk is investigating its own accounting practices, shares fall

(Bloomberg) — Autodesk Inc. fell the most in nearly a month after disclosing an internal investigation into its own accounting practices and postponing the release of its annual financial report.

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The San Francisco-based software maker received the information and has launched “an internal investigation with the assistance of outside counsel and advisors,” Autodesk said in a filing late Monday. The company said the investigation covers accounting practices around free cash flow and non-GAAP operating margin practices, while the company believes the review will not impact previously released financial statements.

Shares fell 4.7% on Tuesday before erasing some losses and were trading at $251.98 at 9:52 a.m. New York time. The stock is up about 21% over the past twelve months, lagging the gains of the broader iShares Software Sector Fund.

Read more: Autodesk business-model change poses accounting disruptions: reaction

Bloomberg Intelligence analyst Neeraj Patel said a recent change in Autodesk’s transaction model, whereby the company is now sending prices directly to customers rather than using third parties, could be the source of the disruption. “This approach may lead to higher net revenues, lower operating margins and no change in free cash flow,” he said.

The company said it has voluntarily contacted the U.S. Securities and Exchange Commission about the investigation and plans to update the agency as the review progresses.

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