(Bloomberg) -- Autodesk Inc. fell by the most in almost a month after disclosing an internal investigation into its own accounting practices and putting off the release of its annual financial report. Most Read from Bloomberg A Million Simulations, One Verdict for US Economy: Debt Danger Ahead Trump Media’s Business Doesn’t Matter Trump Got His $175 Million Bond From a Billionaire Fan’s Company Tesla’s Sales Miss by the Most Ever in Brutal Blow for EVs Iran Vows to Punish Israel for Strike on Embassy in Syria The San Francisco-based software maker received information that has prompted “an internal investigation with the assistance of outside counsel and advisors,” Autodesk said in a filing late Monday. The probe involves accounting practices around free cash flow and non-GAAP operating margin practices, the company said, while noting it doesn’t believe the review will affect previously issued financial statements. Shares dropped as much as 4.7% on Tuesday before erasing some losses and 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 a broader iShares software sector fund. Read More: Autodesk Business-Model Changes Spur Accounting Hurdles: React A recent change in Autodesk’s transaction model, by which the company is now sending prices directly to customers rather than using third parties, may be the source of the disruption, Bloomberg Intelligence analyst Niraj Patel said. The approach “could yield higher net revenue, lower operating margin and no change to free cash flow,” he said. The company said it has voluntarily contacted the US Securities and Exchange Commission about the investigation and plans to update the agency as the review proceeds. Most Read from Bloomberg Businessweek The Cautionary Tale of Wirecutter and the Internet’s Favorite Wok How Michael Rubin Ended Up Holding All the Cards AI Energy Crisis Boosts Interest in Chips That Do It All Building Diversity When Affirmative Action Is Banned EV Rise Helps BYD Overtake Geely to Become China’s Car King ©2024 Bloomberg L.P.
Autodesk Is Probing Its Own Accounting Practices, Shares Decline
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