SAN RAFAEL, Calif.,
May 23, 2019 /PRNewswire/ -- Autodesk, Inc. (NASDAQ:
ADSK) today reported financial results for the first quarter of
fiscal 2020.
All growth rates are compared to the first quarter of fiscal
2019 unless otherwise noted. A reconciliation of GAAP to non-GAAP
results is provided in the accompanying tables. For definitions,
please view the Glossary of Terms later in this document.
- Total ARR increased 33 percent to $2.83
billion;
- Billings were $798 million;
adjusting for adoption of ASC 606, billings increased 40
percent;
- Total revenue increased 31 percent to $735 million; recurring revenue represents 96
percent of total;
- GAAP operating margin was 3 percent, up 13 percentage
points;
- Non-GAAP operating margin was 18 percent, up 13 percentage
points;
- GAAP diluted EPS was $(0.11);
Non-GAAP diluted EPS of $0.45;
- Cash flow from operating activities was $221 million; free cash flow was $207 million
"We are off to a strong start in fiscal 2020 with billings and
free cash flow coming in at or above expectations and great
momentum across the entire business," said Andrew Anagnost, Autodesk president and CEO. "We
are particularly pleased with the performance of our Construction
portfolio, where we have started realizing both the sales and
technology synergies we envisioned when we acquired PlanGrid and
BuildingConnected. Overall, we are on track to achieve our fiscal
2020 ARR and free cash flow guidance and are reaffirming our fiscal
2023 targets."
"Our solid execution during the growth phase of the business
model transition drove 33% ARR growth and enabled significant
margin expansion," said Scott
Herren, Autodesk CFO. "All product categories and
geographies made solid contributions to our strong start in the
first quarter, and market demand remains robust. Over the last 12
months, we have generated $550
million in free cash flow, positioning us well to hit our
fiscal 2020 target of $1.35
billion."
First Quarter Fiscal 2020 Financial Highlights
- Total ARR increased 33 percent to $2.83
billion as reported, and 32 percent on a constant currency
basis. On a sequential basis, total ARR increased 3 percent as
reported, and on a constant currency basis.
- Subscription plan ARR increased 70 percent to $2.38 billion as reported, and 69 percent on a
constant currency basis. On a sequential basis, subscription plan
ARR increased 8 percent as reported, and on a constant currency
basis. Subscription plan ARR includes $505
million related to the maintenance-to-subscription (M2S)
program.
- Maintenance plan ARR decreased 38 percent to $448 million as reported, and 40 percent on a
constant currency basis. On a sequential basis, maintenance plan
ARR decreased 18 percent as reported, and 19 percent on a constant
currency basis.
- Core ARR increased 29 percent to $2.65
billion. On a sequential basis, core ARR increased 1
percent.
- Cloud ARR increased 164 percent to $181
million. Excluding fourth quarter acquisitions, cloud ARR
increased 43 percent to $98 million.
On a sequential basis, total cloud ARR increased 43 percent.
- Net revenue retention rate was within the fiscal 2019 range of
approximately 110 to 120 percent.
- Total revenue increased 31 percent to $735 million as reported, and 30 percent on a
constant currency basis.
- Total recurring revenue in the first quarter was 96 percent of
total revenue, compared to 95 percent in the first quarter last
year.
- GAAP operating income was $25
million compared to a loss of $(55)
million in the first quarter last year. GAAP operating
margin was 3 percent, up 13 percentage points year-over-year. The
increase was driven by an increase in revenue, operating leverage,
and lower restructuring costs.
- Total non-GAAP operating income was $132
million compared to $29
million in the first quarter last year. Non-GAAP operating
margin was 18 percent, up 13 percentage points year-over-year. The
increase was driven by an increase in revenue and operating
leverage.
- GAAP diluted net loss per share was $(0.11), compared to GAAP diluted net loss per
share of $(0.38) in the first quarter
last year.
- Non-GAAP diluted net income per share was $0.45, compared to non-GAAP diluted net income
per share of $0.06 in the first
quarter last year.
- Billings were $798 million;
adjusting for adoption of ASC 606, billings increased 40
percent.
- Deferred revenue increased 19 percent to $2.15 billion. The increase is primarily related
to the increase in subscription plan billings as well as recent
acquisitions. Unbilled deferred revenue at the end of the first
quarter was $589 million, a decrease
of $2 million compared to the fourth
quarter of fiscal 2019. The decrease is primarily due to the normal
seasonality of EBA billings. Total deferred revenue (deferred
revenue plus unbilled deferred revenue) was $2.74 billion, an increase of 24 percent compared
to the first quarter last year.
- Cash flow from operating activities was $221 million, an increase of $238 million compared to the first quarter last
year. Free cash flow was $207
million, an increase of $240
million compared to the first quarter last year.
First Quarter
Fiscal 2020 Business Highlights
|
|
|
|
Net Revenue by
Geographic Area
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended April 30,
2019
|
|
Three months
ended April 30,
2018
|
|
Change
compared to
prior fiscal year
|
|
Constant
currency
change compared
to prior fiscal year
|
|
(In millions,
except percentages)
|
|
|
$
|
|
%
|
|
%
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
$
|
249.1
|
|
|
$
|
195.9
|
|
|
$
|
53.2
|
|
|
27
|
%
|
|
*
|
|
Other
Americas
|
46.7
|
|
|
37.6
|
|
|
9.1
|
|
|
24
|
%
|
|
*
|
|
Total
Americas
|
295.8
|
|
|
233.5
|
|
|
62.3
|
|
|
27
|
%
|
|
|
27
|
%
|
|
EMEA
|
297.2
|
|
|
220.9
|
|
|
76.3
|
|
|
35
|
%
|
|
|
31
|
%
|
|
APAC
|
142.5
|
|
|
105.5
|
|
|
37.0
|
|
|
35
|
%
|
|
|
36
|
%
|
|
Total Net
Revenue
|
$
|
735.5
|
|
|
$
|
559.9
|
|
|
$
|
175.6
|
|
|
31
|
%
|
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging
Economies
|
$
|
87.9
|
|
|
$
|
65.2
|
|
|
$
|
22.7
|
|
|
35
|
%
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Constant currency
data not provided at this level.
|
Net Revenue by Product Family
Our product offerings are focused in four primary product
families: Architecture, Engineering and Construction ("AEC"),
AutoCAD and AutoCAD LT, Manufacturing ("MFG"), and Media and
Entertainment ("M&E").
|
Three months
ended
|
|
Change compared to
prior fiscal year
|
(In millions,
except percentages)
|
April 30,
2019
|
|
April 30,
2018
|
$
|
|
%
|
AEC
|
$
|
304.3
|
|
|
$
|
221.8
|
|
|
$
|
82.5
|
|
|
37
|
%
|
AutoCAD and
AutoCAD LT
|
213.2
|
|
|
155.6
|
|
|
57.6
|
|
|
37
|
%
|
MFG
|
167.5
|
|
|
135.4
|
|
|
32.1
|
|
|
24
|
%
|
M&E
|
45.5
|
|
|
41.8
|
|
|
3.7
|
|
|
9
|
%
|
Other
|
5.0
|
|
|
5.3
|
|
|
(0.3)
|
|
|
(6)
|
%
|
|
$
|
735.5
|
|
|
$
|
559.9
|
|
|
$
|
175.6
|
|
|
31
|
%
|
Business Outlook
The following are forward-looking statements based on current
expectations and assumptions, and involve risks and uncertainties,
some of which are set forth below under "Safe Harbor
Statement." Autodesk's business outlook for the second
quarter and full year fiscal 2020 assumes, among other things, a
continuation of the current economic environment and foreign
exchange currency rate environment. A reconciliation between
the fiscal 2020 GAAP and non-GAAP estimates is provided below or in
the tables following this press release.
Second Quarter
Fiscal 2020
|
|
|
|
Q2 FY20 Guidance
Metrics
|
Q2
FY20
(ending July 31,
2019)
|
Revenue (in
millions)
|
$782 -
$792
|
EPS
GAAP
|
$0.13 -
$0.17
|
EPS non-GAAP
(1)
|
$0.59 -
$0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Non-GAAP earnings per
diluted share excludes $0.37 related to stock-based compensation
expense, $0.08 for the amortization of acquisition-related
intangibles, $0.04 related to acquisition related costs, and
$(0.03) related to GAAP-only tax charges.
|
Full Year Fiscal
2020
|
|
|
|
FY20 Guidance
Metrics
|
FY20
(ending January
31, 2020)
|
Total ARR (in
millions)
|
$3,500 -
$3,550
Up 27% -
29%
|
Billings (in
millions)
|
$4,050 -
$4,150
Up 50% -
53%
|
Revenue (in
millions)
|
$3,250 -
$3,300
Up 26% -
28%
|
GAAP spend growth
(1)
|
Approx.
12%
|
Non-GAAP spend
growth (2)
|
Approx. 9%
|
EPS GAAP
(1)
|
$0.83 -
$1.02
|
EPS non-GAAP
(3)
|
$2.71 -
$2.90
|
Free cash
flow
|
Approx. $1.35
billion
|
|
|
|
|
|
|
|
|
|
(1)
|
GAAP spend growth
increased by 2 percentage points versus our prior guidance. This
resulted in a corresponding reduction in GAAP EPS. The change in
outlook is due primarily to stock-based compensation, as well as
accounting adjustments associated with our fourth quarter
acquisitions.
|
(2)
|
Non-GAAP spend
excludes $326 million related to stock-based compensation expense,
$74 million for the amortization of acquisition-related
intangibles, and $38 million for acquisition related
costs.
|
(3)
|
Non-GAAP earnings per
diluted share excludes $1.47 related to stock-based compensation
expense, $0.33 for the amortization of acquisition-related
intangibles, $0.18 related to acquisition related costs, $0.02
related to losses on strategic investments and dispositions, and
$(0.12) related to GAAP-only tax charges.
|
The second quarter and full year fiscal 2020 outlook assume a
projected annual effective tax rate of 34 percent and 18 percent
for GAAP and non-GAAP results, respectively. Shifts in
geographic profitability continue to impact the annual effective
tax rate due to significant differences in tax rates in various
jurisdictions. Thus, assumptions for the annual effective tax
rate are evaluated regularly and may change based on the projected
geographic mix of earnings.
Earnings Conference Call and Webcast
Autodesk will host its first quarter conference call today at
5:00 p.m. ET. The live broadcast can
be accessed at http://www.autodesk.com/investor. A transcript of
the opening commentary will also be available following the
conference call.
A replay of the broadcast will be available at 7:00 p.m. ET at http://www.autodesk.com/investor.
This replay will be maintained on Autodesk's website for at least
12 months.
Investor Presentation Details
An investor presentation providing additional information can be
found at http://www.autodesk.com/investor.
Glossary of Terms
Annualized Recurring Revenue (ARR): Represents the
annualized value of our average monthly recurring revenue for the
preceding three months. "Maintenance plan ARR" captures ARR
relating to traditional maintenance attached to perpetual licenses.
"Subscription plan ARR" captures ARR relating to subscription
offerings. Refer to the definition of recurring revenue below for
more details on what is included within ARR. Recurring revenue
acquired with the acquisition of a business is captured when total
subscriptions are captured in our systems and may cause variability
in the comparison of this calculation.
ARR is currently one of our key performance metrics to assess
the health and trajectory of our business. ARR should be viewed
independently of revenue and deferred revenue as ARR is a
performance metric and is not intended to be combined with any of
these items.
Billings: Total revenue plus the net change in deferred
revenue from the beginning to the end of the period.
Cloud Service Offerings: Represents individual term-based
offerings deployed through web browser technologies or in a hybrid
software and cloud configuration. Cloud service offerings that are
bundled with other product offerings are not captured as a separate
cloud service offering.
Constant Currency (CC) Growth Rates: We attempt to
represent the changes in the underlying business operations by
eliminating fluctuations caused by changes in foreign currency
exchange rates as well as eliminating hedge gains or losses
recorded within the current and comparative periods. We calculate
constant currency growth rates by (i) applying the applicable prior
period exchange rates to current period results and (ii) excluding
any gains or losses from foreign currency hedge contracts that are
reported in the current and comparative periods.
Core Business: Represents the combination of
maintenance, product, and EBA.
Enterprise Business Agreements (EBAs): Represents
programs providing enterprise customers with token-based access or
a fixed maximum number of seats to a broad pool of Autodesk
products over a defined contract term.
Free Cash Flow: Cash flow from operating
activities minus capital expenditures.
Maintenance Plan: Our maintenance plans provide our
customers with a cost effective and predictable budgetary option to
obtain the productivity benefits of our new releases and
enhancements when and if released during the term of their
contracts. Under our maintenance plans, customers are eligible to
receive unspecified upgrades when and if available, and technical
support. We recognize maintenance revenue over the term of the
agreements, generally one year.
Net Revenue Retention Rate: Measures the year-over-year
change in ARR for the population of customers that existed one year
ago ("base customers"). Net revenue retention rate is
calculated by dividing the current period ARR related to base
customers by the total ARR from one year ago. ARR is based on
USD reported revenue, and fluctuations caused by changes in foreign
currency exchange rates and hedge gains or losses have not been
eliminated. ARR related to acquired companies is excluded
from the calculation for at least one year from integration.
Other Revenue: Consists of revenue from consulting,
training and other services, and is recognized over time as the
services are performed. Other Revenue also includes software
license revenue from the sale of products that do not incorporate
substantial cloud services and is recognized up front.
Product Subscription: Provides customers the
most flexible, cost-effective way to access and manage 3D design,
engineering, and entertainment software tools. Our product
subscriptions currently represent a hybrid of desktop and SaaS
functionality, which provides a device-independent, collaborative
design workflow for designers and their stakeholders.
Recurring Revenue: Consists of the revenue for the
period from our traditional maintenance plans and revenue from our
subscription plan offerings. It excludes subscription revenue
related to consumer product offerings, select Creative Finishing
product offerings, education offerings, and third party products.
Recurring revenue acquired with the acquisition of a business is
captured when total subscriptions are captured in our systems and
may cause variability in the comparison of this
calculation.
Subscription Plan: Comprises our term-based product
subscriptions, cloud service offerings, and EBAs. Subscriptions
represent a combined hybrid offering of desktop software and cloud
functionality which provides a device-independent, collaborative
design workflow for designers and their stakeholders. With
subscription, customers can use our software anytime, anywhere, and
get access to the latest updates to previous versions.
Subscription Revenue: Includes subscription fees from
product subscriptions, cloud service offerings, and EBAs.
Total Deferred Revenue: Is the sum of total short term,
long term, and unbilled deferred revenue.
Unbilled Deferred Revenue: Unbilled deferred revenue
represents contractually stated or committed orders under early
renewal and multi-year billing plans for subscription, services and
maintenance for which the associated deferred revenue has not been
recognized. Under FASB Accounting Standards Codification ("ASC")
Topic 606, unbilled deferred revenue is not included as a
receivable or deferred revenue on our Condensed Consolidated
Balance Sheet.
Safe Harbor Statement
This press release contains forward-looking statements that
involve risks and uncertainties, including statements in the
paragraphs under "Business Outlook" above and other statements
about our short-term and long-term goals, and other statements
regarding our strategies, market and product positions, performance
and results. There are a significant number of factors that could
cause actual results to differ materially from statements made in
this press release, including: failure to achieve our revenue and
profitability objectives; failure to successfully manage
transitions to new business models and markets; failure to maintain
cost reductions or otherwise control our expenses; difficulty in
predicting revenue from new businesses and the potential impact on
our financial results from changes in our business models; general
market, political, economic, and business conditions; any
imposition of new tariffs or trade barriers; the impact of non-cash
charges on our financial results; fluctuation in foreign currency
exchange rates; the success of our foreign currency hedging
program; our performance in particular geographies, including
emerging economies; the ability of governments around the world to
meet their financial and debt obligations, and finance
infrastructure projects; weak or negative growth in the industries
we serve; slowing momentum in subscription billings or revenues;
difficulties encountered in integrating new or acquired businesses
and technologies; the inability to identify and realize the
anticipated benefits of acquisitions; the financial and business
condition of our reseller and distribution channels; dependence on
and the timing of large transactions; pricing pressure; unexpected
fluctuations in our annual effective tax rate; significant effects
of tax legislation and judicial or administrative interpretation of
tax regulations, including the Tax Cuts and Jobs Act; the timing
and degree of expected investments in growth and efficiency
opportunities; changes in the timing of product releases and
retirements; and any unanticipated accounting charges. Our
estimates as to tax rate are based on current tax law, including
current interpretations of the Tax Cuts and Jobs Act, and could be
affected by changing interpretations of that Act, as well as
additional legislation and guidance around that Act.
Further information on potential factors that could affect the
financial results of Autodesk are included in Autodesk's Annual
Report on Form 10-K for the fiscal year ended January 31, 2019, which is on file with the U.S.
Securities and Exchange Commission. Autodesk disclaims any
obligation to update the forward-looking statements provided to
reflect events that occur or circumstances that exist after the
date on which they were made.
About Autodesk
Autodesk makes software for people who make things. If you've
ever driven a high-performance car, admired a towering skyscraper,
used a smartphone, or watched a great film, chances are you've
experienced what millions of Autodesk customers are doing with our
software. Autodesk gives you the power to make anything. For more
information visit autodesk.com or follow @autodesk.
Autodesk, AutoCAD, AutoCAD LT, BIM 360 and Fusion 360 are
registered trademarks of Autodesk, Inc., and/or its subsidiaries
and/or affiliates in the USA
and/or other countries. All other brand names, product names or
trademarks belong to their respective holders. Autodesk reserves
the right to alter product and service offerings, and
specifications and pricing at any time without notice, and is not
responsible for typographical or graphical errors that may appear
in this document.
© 2019 Autodesk, Inc. All rights reserved.
Autodesk,
Inc.
|
|
|
|
Condensed
Consolidated Statements of Operations
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
|
Three Months Ended
April 30,
|
|
2019
|
|
2018
|
|
(Unaudited)
|
Net
revenue:
|
|
|
|
Subscription
|
$
|
595.8
|
|
|
$
|
350.4
|
|
Maintenance
|
112.0
|
|
|
181.2
|
|
Total subscription and maintenance revenue
|
707.8
|
|
|
531.6
|
|
Other
|
27.7
|
|
|
28.3
|
|
Total net revenue
|
735.5
|
|
|
559.9
|
|
Cost of
revenue:
|
|
|
|
Cost of subscription
and maintenance revenue
|
59.7
|
|
|
50.4
|
|
Cost of other
revenue
|
13.8
|
|
|
12.8
|
|
Amortization of
developed technology
|
9.2
|
|
|
3.6
|
|
Total
cost of revenue
|
82.7
|
|
|
66.8
|
|
Gross
profit
|
652.8
|
|
|
493.1
|
|
Operating
expenses:
|
|
|
|
Marketing and
sales
|
313.3
|
|
|
276.4
|
|
Research and
development
|
205.6
|
|
|
172.8
|
|
General and
administrative
|
99.1
|
|
|
72.9
|
|
Amortization of
purchased intangibles
|
9.8
|
|
|
3.8
|
|
Restructuring and
other exit costs, net
|
0.2
|
|
|
22.5
|
|
Total operating
expenses
|
628.0
|
|
|
548.4
|
|
Income (loss) from
operations
|
24.8
|
|
|
(55.3)
|
|
Interest and other
expense, net
|
(16.2)
|
|
|
(8.5)
|
|
Income (loss) before
income taxes
|
8.6
|
|
|
(63.8)
|
|
Provision for income
taxes
|
(32.8)
|
|
|
(18.6)
|
|
Net loss
|
$
|
(24.2)
|
|
|
$
|
(82.4)
|
|
Basic net loss per
share
|
$
|
(0.11)
|
|
|
$
|
(0.38)
|
|
Diluted net loss per
share
|
$
|
(0.11)
|
|
|
$
|
(0.38)
|
|
Weighted average
shares used in computing basic net loss per share
|
219.6
|
|
|
218.6
|
|
Weighted average
shares used in computing diluted net loss per share
|
219.6
|
|
|
218.6
|
|
Autodesk,
Inc.
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
April 30,
2019
|
|
January 31,
2019
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
883.2
|
|
|
$
|
886.0
|
|
Marketable
securities
|
88.9
|
|
|
67.6
|
|
Accounts receivable,
net
|
268.1
|
|
|
474.3
|
|
Prepaid expenses and
other current assets
|
182.1
|
|
|
192.1
|
|
Total current
assets
|
1,422.3
|
|
|
1,620.0
|
|
Computer equipment,
software, furniture and leasehold improvements, net
|
152.6
|
|
|
149.7
|
|
Operating lease
right-of-use assets
|
309.9
|
|
|
—
|
|
Developed
technologies, net
|
96.3
|
|
|
105.6
|
|
Goodwill
|
2,446.2
|
|
|
2,450.8
|
|
Deferred income
taxes, net
|
54.4
|
|
|
65.3
|
|
Other
assets
|
326.8
|
|
|
337.8
|
|
Total
assets
|
$
|
4,808.5
|
|
|
$
|
4,729.2
|
|
LIABILITIES AND
STOCKHOLDERS' DEFICIT
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
98.0
|
|
|
$
|
101.6
|
|
Accrued
compensation
|
161.8
|
|
|
280.8
|
|
Accrued income
taxes
|
6.5
|
|
|
13.2
|
|
Deferred
revenue
|
1,777.5
|
|
|
1,763.3
|
|
Lease
liabilities
|
59.2
|
|
|
—
|
|
Other accrued
liabilities
|
117.7
|
|
|
142.3
|
|
Total current
liabilities
|
2,220.7
|
|
|
2,301.2
|
|
Long-term deferred
revenue
|
376.0
|
|
|
328.1
|
|
Long-term lease
liabilities
|
265.6
|
|
|
—
|
|
Long-term income
taxes payable
|
18.4
|
|
|
21.5
|
|
Long-term deferred
income taxes
|
93.9
|
|
|
79.8
|
|
Long-term notes
payable, net
|
1,963.3
|
|
|
2,087.7
|
|
Other
liabilities
|
115.9
|
|
|
121.8
|
|
Stockholders'
deficit:
|
|
|
|
Common stock and
additional paid-in capital
|
2,123.1
|
|
|
2,071.5
|
|
Accumulated other
comprehensive loss
|
(141.6)
|
|
|
(135.0)
|
|
Accumulated
deficit
|
(2,226.8)
|
|
|
(2,147.4)
|
|
Total stockholders'
deficit
|
(245.3)
|
|
|
(210.9)
|
|
Total liabilities and
stockholders' deficit
|
$
|
4,808.5
|
|
|
$
|
4,729.2
|
|
Autodesk,
Inc.
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
Three Months Ended
April 30,
|
|
2019
|
|
2018
|
|
(Unaudited)
|
Operating
activities:
|
|
|
|
Net loss
|
$
|
(24.2)
|
|
|
$
|
(82.4)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
Depreciation,
amortization and accretion
|
32.7
|
|
|
24.1
|
|
Stock-based
compensation expense
|
75.2
|
|
|
54.4
|
|
Deferred income
taxes
|
24.4
|
|
|
13.3
|
|
Restructuring and
other exit costs, net
|
0.2
|
|
|
22.5
|
|
Other operating
activities
|
15.3
|
|
|
10.5
|
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
Accounts
receivable
|
206.2
|
|
|
231.4
|
|
Prepaid expenses and
other current assets
|
11.4
|
|
|
(1.4)
|
|
Accounts payable and
accrued liabilities
|
(172.6)
|
|
|
(227.7)
|
|
Deferred
revenue
|
62.2
|
|
|
(58.5)
|
|
Accrued income
taxes
|
(9.6)
|
|
|
(3.1)
|
|
Net cash provided by
(used in) operating activities
|
221.2
|
|
|
(16.9)
|
|
Investing
activities:
|
|
|
|
Purchases of
marketable securities
|
(19.8)
|
|
|
(9.9)
|
|
Sales of marketable
securities
|
4.6
|
|
|
6.2
|
|
Maturities of
marketable securities
|
—
|
|
|
68.6
|
|
Capital
expenditures
|
(14.7)
|
|
|
(16.7)
|
|
Other investing
activities
|
0.7
|
|
|
(0.6)
|
|
Net cash (used in)
provided by investing activities
|
(29.2)
|
|
|
47.6
|
|
Financing
activities:
|
|
|
|
Proceeds from
issuance of common stock, net of issuance costs
|
46.9
|
|
|
49.1
|
|
Taxes paid related to
net share settlement of equity awards
|
(25.8)
|
|
|
(38.8)
|
|
Repurchase and
retirement of common stock
|
(88.5)
|
|
|
(22.0)
|
|
Repayment of
debt
|
(125.0)
|
|
|
—
|
|
Net cash used in
financing activities
|
(192.4)
|
|
|
(11.7)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(2.4)
|
|
|
(4.0)
|
|
Net (decrease)
increase in cash and cash equivalents
|
(2.8)
|
|
|
15.0
|
|
Cash and cash
equivalents at beginning of the period
|
886.0
|
|
|
1,078.0
|
|
Cash and cash
equivalents at end of the period
|
$
|
883.2
|
|
|
$
|
1,093.0
|
|
Autodesk,
Inc.
|
|
|
|
Reconciliation of
GAAP financial measures to non-GAAP financial
measures
|
(In millions,
except per share data)
|
|
|
|
|
To supplement our
consolidated financial statements presented on a GAAP basis, we
provide investors with certain non-GAAP measures including non-GAAP
net income per share, non-GAAP operating margin, non-GAAP spend,
non-GAAP EPS and free cash flow. For our internal budgeting and
resource allocation process and as a means to evaluate
period-to-period comparisons, we use non-GAAP measures to
supplement our consolidated financial statements presented on a
GAAP basis. These non-GAAP measures do not include certain items
that may have a material impact upon our future reported financial
results. We use non-GAAP measures in making operating decisions
because we believe those measures provide meaningful supplemental
information regarding our earning potential and performance for
management by excluding certain expenses and charges that may not
be indicative of our core business operating results. For the
reasons set forth below, we believe these non-GAAP financial
measures are useful to investors both because (1) they allow for
greater transparency with respect to key metrics used by management
in its financial and operational decision-making and (2) they are
used by our institutional investors and the analyst community to
help them analyze the health of our business. This allows investors
and others to better understand and evaluate our operating results
and future prospects in the same manner as management, compare
financial results across accounting periods and to those of peer
companies and to better understand the long-term performance of our
core business. We also use some of these measures for purposes of
determining company-wide incentive compensation.
|
There are limitations
in using non-GAAP financial measures because non-GAAP financial
measures are not prepared in accordance with GAAP and may be
different from non-GAAP financial measures used by other companies.
The non-GAAP financial measures are limited in value because they
exclude certain items that may have a material impact upon our
reported financial results. In addition, they are subject to
inherent limitations as they reflect the exercise of judgments by
management about which charges are excluded from the non-GAAP
financial measures. We compensate for these limitations by
analyzing current and future results on a GAAP basis as well as a
non-GAAP basis and also by providing GAAP measures in our public
disclosures. The presentation of non-GAAP financial information is
meant to be considered in addition to, not as a substitute for or
in isolation from, the directly comparable financial measures
prepared in accordance with GAAP. We urge investors to review the
reconciliation of our non-GAAP financial measures to the comparable
GAAP financial measures included in this presentation, and not to
rely on any single financial measure to evaluate our
business.
|
|
|
|
|
The following table
shows Autodesk's non-GAAP results reconciled to GAAP results
included in this release.
|
|
|
|
|
|
Three Months Ended
April 30,
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
|
|
|
GAAP cost of
subscription and maintenance revenue
|
$
|
59.7
|
|
|
$
|
50.4
|
|
Stock-based
compensation expense
|
(3.6)
|
|
|
(2.7)
|
|
Non-GAAP cost of
subscription and maintenance revenue
|
$
|
56.1
|
|
|
$
|
47.7
|
|
|
|
|
|
GAAP cost of other
revenue
|
$
|
13.8
|
|
|
$
|
12.8
|
|
Stock-based
compensation expense
|
(1.3)
|
|
|
(0.8)
|
|
Non-GAAP cost of
other revenue
|
$
|
12.5
|
|
|
$
|
12.0
|
|
|
|
|
|
GAAP amortization of
developed technology
|
$
|
9.2
|
|
|
$
|
3.6
|
|
Amortization of
developed technology
|
(9.2)
|
|
|
(3.6)
|
|
Non-GAAP amortization
of developed technology
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
GAAP gross
profit
|
$
|
652.8
|
|
|
$
|
493.1
|
|
Stock-based
compensation expense
|
4.9
|
|
|
3.5
|
|
Amortization of
developed technology
|
9.2
|
|
|
3.6
|
|
Non-GAAP gross
profit
|
$
|
666.9
|
|
|
$
|
500.2
|
|
|
|
|
|
GAAP marketing and
sales
|
$
|
313.3
|
|
|
$
|
276.4
|
|
Stock-based
compensation expense
|
(32.5)
|
|
|
(24.0)
|
|
Non-GAAP marketing
and sales
|
$
|
280.8
|
|
|
$
|
252.4
|
|
|
|
|
|
GAAP research and
development
|
$
|
205.6
|
|
|
$
|
172.8
|
|
Stock-based
compensation expense
|
(26.7)
|
|
|
(17.8)
|
|
Non-GAAP research and
development
|
$
|
178.9
|
|
|
$
|
155.0
|
|
|
|
|
|
GAAP general and
administrative
|
$
|
99.1
|
|
|
$
|
72.9
|
|
Stock-based
compensation expense
|
(11.1)
|
|
|
(9.1)
|
|
Acquisition related
costs
|
(12.7)
|
|
|
—
|
|
Non-GAAP general and
administrative
|
$
|
75.3
|
|
|
$
|
63.8
|
|
|
|
|
|
GAAP amortization of
purchased intangibles
|
$
|
9.8
|
|
|
$
|
3.8
|
|
Amortization of
purchased intangibles
|
(9.8)
|
|
|
(3.8)
|
|
Non-GAAP amortization
of purchased intangibles
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
GAAP restructuring
and other exit costs, net
|
$
|
0.2
|
|
|
$
|
22.5
|
|
Restructuring and
other exit costs, net
|
(0.2)
|
|
|
(22.5)
|
|
Non-GAAP
restructuring and other exit costs, net
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
628.0
|
|
|
$
|
548.4
|
|
Stock-based
compensation expense
|
(70.3)
|
|
|
(50.9)
|
|
Amortization of
purchased intangibles
|
(9.8)
|
|
|
(3.8)
|
|
Acquisition related
costs
|
(12.7)
|
|
|
—
|
|
Restructuring and
other exit costs, net
|
(0.2)
|
|
|
(22.5)
|
|
Non-GAAP operating
expenses
|
$
|
535.0
|
|
|
$
|
471.2
|
|
|
|
|
|
GAAP spend
|
$
|
710.7
|
|
|
$
|
615.2
|
|
Stock-based
compensation expense
|
(75.2)
|
|
|
(54.4)
|
|
Amortization of
developed technology
|
(9.2)
|
|
|
(3.6)
|
|
Amortization of
purchased intangibles
|
(9.8)
|
|
|
(3.8)
|
|
Acquisition related
costs
|
(12.7)
|
|
|
—
|
|
Restructuring and
other exit costs, net
|
(0.2)
|
|
|
(22.5)
|
|
Non-GAAP
spend
|
$
|
603.6
|
|
|
$
|
530.9
|
|
|
|
|
|
GAAP income (loss)
from operations
|
$
|
24.8
|
|
|
$
|
(55.3)
|
|
Stock-based
compensation expense
|
75.2
|
|
|
54.4
|
|
Amortization of
developed technology
|
9.2
|
|
|
3.6
|
|
Amortization of
purchased intangibles
|
9.8
|
|
|
3.8
|
|
Acquisition related
costs
|
12.7
|
|
|
—
|
|
Restructuring and
other exit costs, net
|
0.2
|
|
|
22.5
|
|
Non-GAAP income from
operations
|
$
|
131.9
|
|
|
$
|
29.0
|
|
|
|
|
|
GAAP interest and
other expense, net
|
$
|
(16.2)
|
|
|
$
|
(8.5)
|
|
Loss (gain) on
strategic investments and dispositions, net
|
5.0
|
|
|
(2.7)
|
|
Non-GAAP interest and
other expense, net
|
$
|
(11.2)
|
|
|
$
|
(11.2)
|
|
|
|
|
|
GAAP provision for
income taxes
|
$
|
(32.8)
|
|
|
$
|
(18.6)
|
|
Discrete GAAP tax
items
|
(2.3)
|
|
|
—
|
|
Income tax effect of
non-GAAP adjustments
|
13.4
|
|
|
15.2
|
|
Non-GAAP provision
for income tax
|
$
|
(21.7)
|
|
|
$
|
(3.4)
|
|
|
|
|
|
GAAP net
loss
|
$
|
(24.2)
|
|
|
$
|
(82.4)
|
|
Stock-based
compensation expense
|
75.2
|
|
|
54.4
|
|
Amortization of
developed technology
|
9.2
|
|
|
3.6
|
|
Amortization of
purchased intangibles
|
9.8
|
|
|
3.8
|
|
Acquisition related
costs
|
12.7
|
|
|
—
|
|
Restructuring and
other exit costs, net
|
0.2
|
|
|
22.5
|
|
Loss (gain) on
strategic investments and dispositions, net
|
5.0
|
|
|
(2.7)
|
|
Discrete GAAP tax
items
|
(2.3)
|
|
|
—
|
|
Income tax effect of
non-GAAP adjustments
|
13.4
|
|
|
15.2
|
|
Non-GAAP net
income
|
$
|
99.0
|
|
|
$
|
14.4
|
|
|
|
|
|
GAAP diluted net loss
per share
|
$
|
(0.11)
|
|
|
$
|
(0.38)
|
|
Stock-based
compensation expense
|
0.34
|
|
|
0.25
|
|
Amortization of
developed technology
|
0.04
|
|
|
0.02
|
|
Amortization of
purchased intangibles
|
0.04
|
|
|
0.02
|
|
Acquisition related
costs
|
0.07
|
|
|
—
|
|
Restructuring and
other exit costs, net
|
—
|
|
|
0.09
|
|
Loss (gain) on
strategic investments and dispositions, net
|
0.02
|
|
|
(0.01)
|
|
Discrete GAAP tax
items
|
(0.01)
|
|
|
—
|
|
Income tax effect of
non-GAAP adjustments
|
0.06
|
|
|
0.07
|
|
Non-GAAP diluted net
income per share
|
$
|
0.45
|
|
|
$
|
0.06
|
|
|
|
|
|
GAAP diluted shares
used in per share calculation
|
219.6
|
|
|
218.6
|
|
Shares included in
non-GAAP net income per share, but excluded from GAAP net loss per
share as they would have been anti-dilutive
|
2.4
|
|
|
3.0
|
|
Non-GAAP diluted
weighted average shares used in per share calculation
|
222.0
|
|
|
221.6
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/autodesk-inc-announces-fiscal-2020-first-quarter-results-300856110.html
SOURCE Autodesk, Inc.