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SAN FRANCISCO - Autodesk, Inc. (NASDAQ: ADSK), a leader in design software with a market capitalization of $56.33 billion, announced the appointment of Jeff Epstein and Christie Simons to its Board of Directors. This move comes as part of a cooperation agreement with Starboard Value LP, an investment advisory firm. Both appointees will initially serve as non-voting observers and will become voting members after the Annual Meeting on June 18, 2025. According to InvestingPro data, Autodesk maintains impressive gross profit margins of 92% and has achieved revenue growth of 11.5% over the last twelve months.
The addition of Epstein and Simons is expected to enhance the Board’s expertise in technology, finance, and audit, which is critical as Autodesk continues to implement its strategies in cloud, platform, and artificial intelligence. Chairman Stacy J. Smith expressed confidence that their insights will contribute to strong business performance and shareholder value creation. InvestingPro analysis indicates the company maintains a GOOD overall financial health score, with particularly strong marks in profitability metrics. Discover 12 additional exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
Jeff Epstein brings a notable background, including a stint as EVP and CFO of Oracle, and board roles at Twilio and Okta, among others. He is currently an Operating Partner at Bessemer Venture Partners. Christie Simons, with over 30 years of experience, has served as a Senior Partner at Deloitte and is on the Board of Directors at Micron Technology.
Starboard’s Jeff Smith highlighted Autodesk’s potential to improve profitability and create significant value, lauding the constructive dialogue with Autodesk’s team. With the agreement, Starboard will withdraw its director nominees and has agreed to certain provisions to facilitate collaboration towards sustainable shareholder value.
The cooperation agreement, including customary standstill and voting provisions, will be detailed in a Form 8-K filed with the U.S. Securities and Exchange Commission.
Autodesk, renowned for its software used in designing and making various products and structures, aims to unlock the power of data and accelerate insights for its customers. With its next earnings report scheduled for May 22, 2025, investors are watching closely. The company’s decision to appoint Epstein and Simons is based on a press release statement and is part of its ongoing board enhancement efforts. For detailed insights and Fair Value analysis, access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, Autodesk reported a notable 12% increase in revenue for FY 2025, reaching $6.1 billion, alongside a 22% growth in free cash flow to $1.6 billion. The company also set ambitious targets for FY 2026, aiming for free cash flow between $2.075 billion and $2.175 billion. In response to Starboard Value LP’s criticisms, Autodesk highlighted its strong financial performance and plans to increase its share repurchase program by 30-40% in FY 2026. Meanwhile, KeyBanc Capital Markets revised its price target for Autodesk to $323, maintaining an Overweight rating, while Stifel adjusted its target to $310, reaffirming a Buy rating. Oppenheimer also lowered its price target to $300, keeping an Outperform rating. The analysts noted Autodesk’s resilient business model, emphasizing its high recurring revenue and strategic initiatives despite macroeconomic challenges. Additionally, board member Betsy Rafael announced she will not seek re-election, marking the end of her advisory tenure in April 2025. Autodesk continues to focus on innovation and shareholder value amidst ongoing discussions with activist investor Starboard.
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