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.
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.
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 Securities and Exchange Commission about the investigation and plans to update the agency as the review proceeds.
