SAN RAFAEL, Calif.,
Aug. 27, 2019 /PRNewswire/
-- Autodesk, Inc. (NASDAQ: ADSK) today reported financial
results for the second quarter of fiscal 2020.
All growth rates are compared to the second 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 31 percent to $3.07
billion;
- Total billings increased 48 percent to $893 million;
- Total revenue increased 30 percent to $797 million; recurring revenue represents 96
percent of total;
- GAAP operating margin was 9 percent, up 13 percentage
points;
- Non-GAAP operating margin was 23 percent, up 14 percentage
points;
- GAAP diluted EPS was $0.18;
Non-GAAP diluted EPS was $0.65;
- Cash flow from operating activities was $219 million; free cash flow was $205 million.
"We closed a solid first half of the year with a very strong
second quarter as revenue, billings, earnings, and free cash flow
came in ahead of expectations," said Andrew
Anagnost, Autodesk president and CEO. "ARR grew to a record
$3.1 billion, driven by all parts of
the business. Construction demonstrated continued strength with
wins across all parts of the portfolio, and Fusion 360 - our
design-to-manufacturing platform - continued to build momentum. We
also made further strides in capturing opportunities within our
non-paying user base. In an environment of increasing uncertainty,
we believe we are well-positioned to achieve our FY23 goals."
"Our strong performance during the second quarter helped us
achieve two milestones," said Scott
Herren, Autodesk CFO. "First, we drove our largest quarterly
non-GAAP net income to date, followed by a record setting last
twelve months free cash flow of $731
million. While we continue to execute well and are not
materially impacted by current trade tensions and macro
uncertainty, we are taking a prudent stance to our second half
fiscal 2020 outlook. Despite these near-term headwinds, our
recurring revenue model is much more resilient than in prior
cycles."
Second Quarter Fiscal 2020 Financial Highlights
- Total ARR increased 31 percent to $3.07
billion as reported, and on a constant currency basis.
Excluding fourth quarter acquisitions, total ARR increased 27
percent to $2.97 billion as reported,
and 26 percent on a constant currency basis. On a sequential basis,
total ARR increased 8 percent as reported, and 9 percent on a
constant currency basis.
- Subscription plan ARR increased 58 percent to $2.65 billion as reported, and 59 percent on a
constant currency basis. Excluding fourth quarter acquisitions,
subscription plan ARR increased 52 percent to $2.56 billion. On a sequential basis,
subscription plan ARR increased 11 percent as reported, and 12
percent on a constant currency basis. Subscription plan ARR
includes $566 million related to the
maintenance-to-subscription (M2S) program.
- Maintenance plan ARR decreased 38 percent to $414 million as reported, and 39 percent on a
constant currency basis. On a sequential basis, maintenance plan
ARR decreased 8 percent as reported, and on a constant currency
basis.
- Core ARR increased 26 percent to $2.86
billion. On a sequential basis, core ARR increased 8
percent.
- Cloud ARR increased 175 percent to $207
million. Excluding fourth quarter acquisitions, cloud ARR
increased 45 percent to $109 million.
On a sequential basis, total cloud ARR increased 15 percent.
- Net revenue retention rate was within the range of 110 to 120
percent.
- Total revenue increased 30 percent to $797 million as reported, and on a constant
currency basis. Excluding fourth quarter acquisitions, total
revenue increased 26 percent to $772
million as reported, and 28 percent on a constant currency
basis.
- Total recurring revenue in the second quarter was 96 percent of
total revenue, consistent with the second quarter last year.
- GAAP operating income was $74
million compared to a loss of $25
million in the second quarter last year. GAAP operating
margin was 9 percent, up 13 percentage points year-over-year.
- Total non-GAAP operating income was $187
million compared to $56
million in the second quarter last year. Non-GAAP operating
margin was 23 percent, up 14 percentage points year-over-year.
- GAAP diluted net income per share was $0.18, compared to GAAP diluted net loss per
share of $0.18 in the second quarter
last year.
- Non-GAAP diluted net income per share was $0.65, compared to non-GAAP diluted net income
per share of $0.19 in the second
quarter last year.
- Total billings increased 48 percent to $893 million.
- Deferred revenue increased 25 percent to $2.25 billion. Unbilled deferred revenue was
$563 million, an increase of
$157 million. Remaining performance
obligations (RPO), or the sum of total billed and unbilled deferred
revenue, totaled $2.81 billion, an
increase of 28 percent. Current RPO totaled $2.01 billion, up 23 percent.
- Cash flow from operating activities was $219 million, an increase of $176 million compared to the second quarter last
year. Free cash flow was $205
million, an increase of $181
million compared to the second quarter last year.
Second Quarter
Fiscal 2020 Business Highlights
|
Net Revenue by
Geographic Area
|
|
|
Three Months
Ended July 31,
2019
|
|
Three Months
Ended July 31,
2018
|
|
Change
compared to
prior fiscal year
|
|
Constant
currency
change compared
to prior fiscal year
|
|
(In millions,
except percentages)
|
|
$
|
|
%
|
%
|
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
$
|
267.9
|
|
|
$
|
205.2
|
|
|
$
|
62.7
|
|
|
31
|
%
|
|
|
*
|
Other
Americas
|
58.0
|
|
|
42.3
|
|
|
15.7
|
|
|
37
|
%
|
|
|
*
|
Total
Americas
|
325.9
|
|
|
247.5
|
|
|
78.4
|
|
|
32
|
%
|
|
32
|
%
|
EMEA
|
316.2
|
|
|
248.3
|
|
|
67.9
|
|
|
27
|
%
|
|
26
|
%
|
APAC
|
154.7
|
|
|
115.9
|
|
|
38.8
|
|
|
33
|
%
|
|
35
|
%
|
Total Net
Revenue
|
$
|
796.8
|
|
|
$
|
611.7
|
|
|
$
|
185.1
|
|
|
30
|
%
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
Emerging
Economies
|
$
|
97.4
|
|
|
$
|
74.2
|
|
|
$
|
23.2
|
|
|
31
|
%
|
|
32
|
%
|
____________________
|
* 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)
|
July 31,
2019
|
|
July 31,
2018
|
$
|
|
%
|
AEC
|
$
|
334.2
|
|
|
$
|
243.1
|
|
|
$
|
91.1
|
|
|
37
|
%
|
AutoCAD and AutoCAD
LT
|
231.3
|
|
|
176.6
|
|
|
54.7
|
|
|
31
|
%
|
MFG
|
174.6
|
|
|
146.1
|
|
|
28.5
|
|
|
20
|
%
|
M&E
|
50.8
|
|
|
41.7
|
|
|
9.1
|
|
|
22
|
%
|
Other
|
5.9
|
|
|
4.2
|
|
|
1.7
|
|
|
40
|
%
|
|
$
|
796.8
|
|
|
$
|
611.7
|
|
|
$
|
185.1
|
|
|
30
|
%
|
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 third quarter
and full year fiscal 2020 takes into consideration 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.
Third Quarter Fiscal 2020
Q3 FY20 Guidance
Metrics
|
Q3
FY20
(ending October
31, 2019)
|
|
|
Revenue (in
millions)
|
$820 -
$830
|
EPS
GAAP
|
$0.24 -
$0.28
|
EPS non-GAAP
(1)
|
$0.70 -
$0.74
|
_______________
|
(1) Non-GAAP earnings
per diluted share excludes $0.42 related to stock-based
compensation expense, $0.08 for the amortization of
acquisition-related intangibles, $0.01 for acquisition related
costs, and ($0.05) related to GAAP-only tax charges.
|
Full Year Fiscal 2020
FY20 Guidance
Metrics
|
FY20
(ending January
31, 2020)
|
Total ARR (in
millions)
|
$3,425 -
$3,485
Up 25% -
27%
|
Billings (in
millions)
|
$4,020 -
$4,080
Up 49% -
51%
|
Revenue (in
millions) (1)
|
$3,240 -
$3,270
Up 26% -
27%
|
GAAP spend
growth
|
Approx.
12%
|
Non-GAAP spend
growth (2)
|
Approx. 9%
|
EPS
GAAP
|
$0.75 -
$0.87
|
EPS non-GAAP
(3)
|
$2.69 -
$2.81
|
Free cash flow
(4)
|
Approx. $1.30
billion
|
_______________
|
(1)
|
Excluding the
approximately $10 million impact of foreign currency exchange rates
and hedge gains/losses, revenue guidance would be $3,250 - $3,280
million.
|
(2)
|
Non-GAAP spend
excludes $354 million related to stock-based compensation expense,
$73 million for the amortization of acquisition-related
intangibles, and $22 million for acquisition-related
costs.
|
(3)
|
Non-GAAP
earnings per diluted share excludes $1.60 related to stock-based
compensation expense, $0.33 for the amortization of
acquisition-related intangibles, $0.11 related to acquisition
related costs, $0.01 related to strategic investment losses, and
($0.11) related to GAAP-only tax charges.
|
(4)
|
Free cash flow
excludes approximately $70 million of capital
expenditures.
|
The third quarter and full year fiscal 2020 outlook assume a
projected annual effective tax rate of 39 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 second 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 (NR3): 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.
Remaining Performance Obligations: The sum of total
short-term, long-term, and unbilled deferred revenue. Current
remaining performance obligations is the amount of revenue we
expect to recognize in the next twelve months.
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.
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 quotations from
management, 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 reports on
Form 10-K and Form 10-Q, which are 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
July 31,
|
|
Six Months Ended
July 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(Unaudited)
|
Net
revenue:
|
|
|
|
|
|
|
|
Subscription
|
$
|
663.7
|
|
|
$
|
420.6
|
|
|
$
|
1,259.5
|
|
|
$
|
771.0
|
|
Maintenance
|
103.5
|
|
|
166.4
|
|
|
215.5
|
|
|
347.6
|
|
Total subscription and maintenance revenue
|
767.2
|
|
|
587.0
|
|
|
1,475.0
|
|
|
1,118.6
|
|
Other
|
29.6
|
|
|
24.7
|
|
|
57.3
|
|
|
53.0
|
|
Total net
revenue
|
796.8
|
|
|
611.7
|
|
|
1,532.3
|
|
|
1,171.6
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Cost of subscription
and maintenance revenue
|
53.0
|
|
|
54.1
|
|
|
112.7
|
|
|
104.5
|
|
Cost of other
revenue
|
17.9
|
|
|
12.3
|
|
|
31.7
|
|
|
25.1
|
|
Amortization of
developed technology
|
8.6
|
|
|
3.4
|
|
|
17.8
|
|
|
7.0
|
|
Total cost of
revenue
|
79.5
|
|
|
69.8
|
|
|
162.2
|
|
|
136.6
|
|
Gross
profit
|
717.3
|
|
|
541.9
|
|
|
1,370.1
|
|
|
1,035.0
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Marketing and
sales
|
316.8
|
|
|
289.1
|
|
|
630.1
|
|
|
565.5
|
|
Research and
development
|
215.4
|
|
|
180.8
|
|
|
421.0
|
|
|
353.6
|
|
General and
administrative
|
101.4
|
|
|
79.1
|
|
|
200.5
|
|
|
152.0
|
|
Amortization of
purchased intangibles
|
9.7
|
|
|
3.8
|
|
|
19.5
|
|
|
7.6
|
|
Restructuring and
other exit costs, net
|
0.2
|
|
|
13.8
|
|
|
0.4
|
|
|
36.3
|
|
Total operating
expenses
|
643.5
|
|
|
566.6
|
|
|
1,271.5
|
|
|
1,115.0
|
|
Income (loss) from
operations
|
73.8
|
|
|
(24.7)
|
|
|
98.6
|
|
|
(80.0)
|
|
Interest and other
(expense) income, net
|
(7.3)
|
|
|
1.3
|
|
|
(23.5)
|
|
|
(7.2)
|
|
Income (loss) before
income taxes
|
66.5
|
|
|
(23.4)
|
|
|
75.1
|
|
|
(87.2)
|
|
Provision for income
taxes
|
(26.3)
|
|
|
(16.0)
|
|
|
(59.1)
|
|
|
(34.6)
|
|
Net income
(loss)
|
$
|
40.2
|
|
|
$
|
(39.4)
|
|
|
$
|
16.0
|
|
|
$
|
(121.8)
|
|
Basic net income
(loss) per share
|
$
|
0.18
|
|
|
$
|
(0.18)
|
|
|
$
|
0.07
|
|
|
$
|
(0.56)
|
|
Diluted net income
(loss) per share
|
$
|
0.18
|
|
|
$
|
(0.18)
|
|
|
$
|
0.07
|
|
|
$
|
(0.56)
|
|
Weighted average
shares used in computing basic net income (loss) per
share
|
219.6
|
|
|
219.0
|
|
|
219.6
|
|
|
218.8
|
|
Weighted average
shares used in computing diluted net income (loss) per
share
|
222.4
|
|
|
219.0
|
|
|
222.3
|
|
|
218.8
|
|
Autodesk,
Inc.
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
July 31,
2019
|
|
January 31,
2019
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
923.9
|
|
|
$
|
886.0
|
|
Marketable
securities
|
67.4
|
|
|
67.6
|
|
Accounts receivable,
net
|
347.4
|
|
|
474.3
|
|
Prepaid expenses and
other current assets
|
176.8
|
|
|
192.1
|
|
Total current
assets
|
1,515.5
|
|
|
1,620.0
|
|
Computer equipment,
software, furniture and leasehold improvements, net
|
151.4
|
|
|
149.7
|
|
Operating lease
right-of-use assets
|
298.8
|
|
|
—
|
|
Developed
technologies, net
|
87.6
|
|
|
105.6
|
|
Goodwill
|
2,431.8
|
|
|
2,450.8
|
|
Deferred income
taxes, net
|
46.3
|
|
|
65.3
|
|
Other
assets
|
341.3
|
|
|
337.8
|
|
Total
assets
|
$
|
4,872.7
|
|
|
$
|
4,729.2
|
|
LIABILITIES AND
STOCKHOLDERS' DEFICIT
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
93.0
|
|
|
$
|
101.6
|
|
Accrued
compensation
|
213.8
|
|
|
280.8
|
|
Accrued income
taxes
|
5.9
|
|
|
13.2
|
|
Deferred
revenue
|
1,772.1
|
|
|
1,763.3
|
|
Operating lease
liabilities
|
58.9
|
|
|
—
|
|
Current portion of
long-term notes payable, net
|
449.2
|
|
|
—
|
|
Other accrued
liabilities
|
114.4
|
|
|
142.3
|
|
Total current
liabilities
|
2,707.3
|
|
|
2,301.2
|
|
Long-term deferred
revenue
|
477.4
|
|
|
328.1
|
|
Long-term operating
lease liabilities
|
258.1
|
|
|
—
|
|
Long-term income
taxes payable
|
19.5
|
|
|
21.5
|
|
Long-term deferred
income taxes
|
98.9
|
|
|
79.8
|
|
Long-term notes
payable, net
|
1,389.8
|
|
|
2,087.7
|
|
Other
liabilities
|
116.0
|
|
|
121.8
|
|
Stockholders'
deficit:
|
|
|
|
Common stock and
additional paid-in capital
|
2,200.7
|
|
|
2,071.5
|
|
Accumulated other
comprehensive loss
|
(170.7)
|
|
|
(135.0)
|
|
Accumulated
deficit
|
(2,224.3)
|
|
|
(2,147.4)
|
|
Total stockholders'
deficit
|
(194.3)
|
|
|
(210.9)
|
|
Total liabilities and
stockholders' deficit
|
$
|
4,872.7
|
|
|
$
|
4,729.2
|
|
Autodesk,
Inc.
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
Six Months Ended
July 31,
|
|
2019
|
|
2018
|
|
(Unaudited)
|
Operating
activities:
|
|
|
|
Net income
(loss)
|
$
|
16.0
|
|
|
$
|
(121.8)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Depreciation,
amortization and accretion
|
64.8
|
|
|
46.3
|
|
Stock-based
compensation expense
|
163.4
|
|
|
111.3
|
|
Deferred income
taxes
|
35.8
|
|
|
(0.3)
|
|
Restructuring and
other exit costs, net
|
0.4
|
|
|
36.6
|
|
Other operating
activities
|
(4.2)
|
|
|
(1.3)
|
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
Accounts
receivable
|
125.8
|
|
|
204.2
|
|
Prepaid expenses and
other current assets
|
27.4
|
|
|
7.9
|
|
Accounts payable and
accrued liabilities
|
(138.1)
|
|
|
(201.3)
|
|
Deferred
revenue
|
158.3
|
|
|
(66.7)
|
|
Accrued income
taxes
|
(9.1)
|
|
|
11.5
|
|
Net cash provided by
operating activities
|
440.5
|
|
|
26.4
|
|
Investing
activities:
|
|
|
|
Purchases of
marketable securities
|
(19.9)
|
|
|
(110.1)
|
|
Sales of marketable
securities
|
22.4
|
|
|
27.0
|
|
Maturities of
marketable securities
|
5.0
|
|
|
119.6
|
|
Capital
expenditures
|
(29.5)
|
|
|
(36.7)
|
|
Acquisitions, net of
cash acquired
|
—
|
|
|
(34.1)
|
|
Other investing
activities
|
(10.5)
|
|
|
(6.0)
|
|
Net cash used in
investing activities
|
(32.5)
|
|
|
(40.3)
|
|
Financing
activities:
|
|
|
|
Proceeds from
issuance of common stock, net of issuance costs
|
49.7
|
|
|
50.4
|
|
Taxes paid related to
net share settlement of equity awards
|
(31.2)
|
|
|
(53.0)
|
|
Repurchase and
retirement of common stock
|
(134.6)
|
|
|
(154.7)
|
|
Repayment of
debt
|
(250.0)
|
|
|
—
|
|
Net cash used in
financing activities
|
(366.1)
|
|
|
(157.3)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(4.0)
|
|
|
(11.4)
|
|
Net increase
(decrease) in cash and cash equivalents
|
37.9
|
|
|
(182.6)
|
|
Cash and cash
equivalents at beginning of the period
|
886.0
|
|
|
1,078.0
|
|
Cash and cash
equivalents at end of the period
|
$
|
923.9
|
|
|
$
|
895.4
|
|
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
July 31,
|
|
Six Months Ended
July 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
GAAP cost of
subscription and maintenance revenue
|
$
|
53.0
|
|
|
$
|
54.1
|
|
|
$
|
112.7
|
|
|
$
|
104.5
|
|
Stock-based
compensation expense
|
(3.4)
|
|
|
(3.1)
|
|
|
(7.0)
|
|
|
(5.8)
|
|
Non-GAAP cost of
subscription and maintenance revenue
|
$
|
49.6
|
|
|
$
|
51.0
|
|
|
$
|
105.7
|
|
|
$
|
98.7
|
|
|
|
|
|
|
|
|
|
GAAP cost of other
revenue
|
$
|
17.9
|
|
|
$
|
12.3
|
|
|
$
|
31.7
|
|
|
$
|
25.1
|
|
Stock-based
compensation expense
|
(1.4)
|
|
|
(0.9)
|
|
|
(2.7)
|
|
|
(1.7)
|
|
Non-GAAP cost of
other revenue
|
$
|
16.5
|
|
|
$
|
11.4
|
|
|
$
|
29.0
|
|
|
$
|
23.4
|
|
|
|
|
|
|
|
|
|
GAAP amortization of
developed technology
|
$
|
8.6
|
|
|
$
|
3.4
|
|
|
$
|
17.8
|
|
|
$
|
7.0
|
|
Amortization of
developed technology
|
(8.6)
|
|
|
(3.4)
|
|
|
(17.8)
|
|
|
(7.0)
|
|
Non-GAAP amortization
of developed technology
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
717.3
|
|
|
$
|
541.9
|
|
|
$
|
1,370.1
|
|
|
$
|
1,035.0
|
|
Stock-based
compensation expense
|
4.8
|
|
|
4.0
|
|
|
9.7
|
|
|
7.5
|
|
Amortization of
developed technology
|
8.6
|
|
|
3.4
|
|
|
17.8
|
|
|
7.0
|
|
Non-GAAP gross
profit
|
$
|
730.7
|
|
|
$
|
549.3
|
|
|
$
|
1,397.6
|
|
|
$
|
1,049.5
|
|
|
|
|
|
|
|
|
|
GAAP marketing and
sales
|
$
|
316.8
|
|
|
$
|
289.1
|
|
|
$
|
630.1
|
|
|
$
|
565.5
|
|
Stock-based
compensation expense
|
(36.0)
|
|
|
(25.9)
|
|
|
(68.5)
|
|
|
(49.9)
|
|
Acquisition related
costs
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
Non-GAAP marketing
and sales
|
$
|
280.7
|
|
|
$
|
263.2
|
|
|
$
|
561.5
|
|
|
$
|
515.6
|
|
|
|
|
|
|
|
|
|
GAAP research and
development
|
$
|
215.4
|
|
|
$
|
180.8
|
|
|
$
|
421.0
|
|
|
$
|
353.6
|
|
Stock-based
compensation expense
|
(30.8)
|
|
|
(18.7)
|
|
|
(57.5)
|
|
|
(36.5)
|
|
Acquisition related
costs
|
(0.4)
|
|
|
—
|
|
|
(0.4)
|
|
|
—
|
|
Non-GAAP research and
development
|
$
|
184.2
|
|
|
$
|
162.1
|
|
|
$
|
363.1
|
|
|
$
|
317.1
|
|
|
|
|
|
|
|
|
|
GAAP general and
administrative
|
$
|
101.4
|
|
|
$
|
79.1
|
|
|
$
|
200.5
|
|
|
$
|
152.0
|
|
Stock-based
compensation expense
|
(16.6)
|
|
|
(8.3)
|
|
|
(27.7)
|
|
|
(17.4)
|
|
CEO transition
costs
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Acquisition related
costs
|
(5.5)
|
|
|
(2.5)
|
|
|
(18.2)
|
|
|
(2.5)
|
|
Non-GAAP general and
administrative
|
$
|
79.3
|
|
|
$
|
68.4
|
|
|
$
|
154.6
|
|
|
$
|
132.2
|
|
|
|
|
|
|
|
|
|
GAAP amortization of
purchased intangibles
|
$
|
9.7
|
|
|
$
|
3.8
|
|
|
$
|
19.5
|
|
|
$
|
7.6
|
|
Amortization of
purchased intangibles
|
(9.7)
|
|
|
(3.8)
|
|
|
(19.5)
|
|
|
(7.6)
|
|
Non-GAAP amortization
of purchased intangibles
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
GAAP restructuring
and other exit costs, net
|
$
|
0.2
|
|
|
$
|
13.8
|
|
|
$
|
0.4
|
|
|
$
|
36.3
|
|
Restructuring and
other exit costs, net
|
(0.2)
|
|
|
(13.8)
|
|
|
(0.4)
|
|
|
(36.3)
|
|
Non-GAAP
restructuring and other exit costs, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
643.5
|
|
|
$
|
566.6
|
|
|
$
|
1,271.5
|
|
|
$
|
1,115.0
|
|
Stock-based
compensation expense
|
(83.4)
|
|
|
(52.9)
|
|
|
(153.7)
|
|
|
(103.8)
|
|
Amortization of
purchased intangibles
|
(9.7)
|
|
|
(3.8)
|
|
|
(19.5)
|
|
|
(7.6)
|
|
CEO transition
costs
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Acquisition related
costs
|
(6.0)
|
|
|
(2.5)
|
|
|
(18.7)
|
|
|
(2.5)
|
|
Restructuring and
other exit costs, net
|
(0.2)
|
|
|
(13.8)
|
|
|
(0.4)
|
|
|
(36.3)
|
|
Non-GAAP operating
expenses
|
$
|
544.2
|
|
|
$
|
493.7
|
|
|
$
|
1,079.2
|
|
|
$
|
964.9
|
|
|
|
|
|
|
|
|
|
GAAP spend
|
$
|
723.0
|
|
|
$
|
636.4
|
|
|
$
|
1,433.7
|
|
|
$
|
1,251.6
|
|
Stock-based
compensation expense
|
(88.2)
|
|
|
(56.9)
|
|
|
(163.4)
|
|
|
(111.3)
|
|
Amortization of
developed technology
|
(8.6)
|
|
|
(3.4)
|
|
|
(17.8)
|
|
|
(7.0)
|
|
Amortization of
purchased intangibles
|
(9.7)
|
|
|
(3.8)
|
|
|
(19.5)
|
|
|
(7.6)
|
|
CEO transition
costs
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Acquisition related
costs
|
(6.0)
|
|
|
(2.5)
|
|
|
(18.7)
|
|
|
(2.5)
|
|
Restructuring and
other exit costs, net
|
(0.2)
|
|
|
(13.8)
|
|
|
(0.4)
|
|
|
(36.3)
|
|
Non-GAAP
spend
|
$
|
610.3
|
|
|
$
|
556.1
|
|
|
$
|
1,213.9
|
|
|
$
|
1,087.0
|
|
|
|
|
|
|
|
|
|
GAAP income (loss)
from operations
|
$
|
73.8
|
|
|
$
|
(24.7)
|
|
|
$
|
98.6
|
|
|
$
|
(80.0)
|
|
Stock-based
compensation expense
|
88.2
|
|
|
56.9
|
|
|
163.4
|
|
|
111.3
|
|
Amortization of
developed technology
|
8.6
|
|
|
3.4
|
|
|
17.8
|
|
|
7.0
|
|
Amortization of
purchased intangibles
|
9.7
|
|
|
3.8
|
|
|
19.5
|
|
|
7.6
|
|
CEO transition
costs
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
Acquisition related
costs
|
6.0
|
|
|
2.5
|
|
|
18.7
|
|
|
2.5
|
|
Restructuring and
other exit costs, net
|
0.2
|
|
|
13.8
|
|
|
0.4
|
|
|
36.3
|
|
Non-GAAP income from
operations
|
$
|
186.5
|
|
|
$
|
55.6
|
|
|
$
|
318.4
|
|
|
$
|
84.6
|
|
|
|
|
|
|
|
|
|
GAAP interest and
other (expense) income, net
|
$
|
(7.3)
|
|
|
$
|
1.3
|
|
|
$
|
(23.5)
|
|
|
$
|
(7.2)
|
|
(Gain) loss on
strategic investments and dispositions, net
|
(2.2)
|
|
|
(3.9)
|
|
|
2.8
|
|
|
(6.6)
|
|
Restructuring and
other exit costs, net
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
Non-GAAP interest and
other expense, net
|
$
|
(9.5)
|
|
|
$
|
(2.3)
|
|
|
$
|
(20.7)
|
|
|
$
|
(13.5)
|
|
|
|
|
|
|
|
|
|
GAAP provision for
income taxes
|
$
|
(26.3)
|
|
|
$
|
(16.0)
|
|
|
$
|
(59.1)
|
|
|
$
|
(34.6)
|
|
Discrete GAAP tax
items
|
3.3
|
|
|
(8.7)
|
|
|
1.0
|
|
|
(8.7)
|
|
Income tax effect of
non-GAAP adjustments
|
(8.9)
|
|
|
14.6
|
|
|
4.5
|
|
|
29.8
|
|
Non-GAAP provision
for income tax
|
$
|
(31.9)
|
|
|
$
|
(10.1)
|
|
|
$
|
(53.6)
|
|
|
$
|
(13.5)
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
|
40.2
|
|
|
$
|
(39.4)
|
|
|
$
|
16.0
|
|
|
$
|
(121.8)
|
|
Stock-based
compensation expense
|
88.2
|
|
|
56.9
|
|
|
163.4
|
|
|
111.3
|
|
Amortization of
developed technology
|
8.6
|
|
|
3.4
|
|
|
17.8
|
|
|
7.0
|
|
Amortization of
purchased intangibles
|
9.7
|
|
|
3.8
|
|
|
19.5
|
|
|
7.6
|
|
CEO transition
costs
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
Acquisition related
costs
|
6.0
|
|
|
2.5
|
|
|
18.7
|
|
|
2.5
|
|
Restructuring and
other exit costs, net
|
0.2
|
|
|
14.1
|
|
|
0.4
|
|
|
36.6
|
|
(Gain) loss on
strategic investments and dispositions, net
|
(2.2)
|
|
|
(3.9)
|
|
|
2.8
|
|
|
(6.6)
|
|
Discrete GAAP tax
items
|
3.3
|
|
|
(8.7)
|
|
|
1.0
|
|
|
(8.7)
|
|
Income tax effect of
non-GAAP adjustments
|
(8.9)
|
|
|
14.6
|
|
|
4.5
|
|
|
29.8
|
|
Non-GAAP net
income
|
$
|
145.1
|
|
|
$
|
43.2
|
|
|
$
|
244.1
|
|
|
$
|
57.6
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
income (loss) per share
|
$
|
0.18
|
|
|
$
|
(0.18)
|
|
|
$
|
0.07
|
|
|
$
|
(0.56)
|
|
Stock-based
compensation expense
|
0.40
|
|
|
0.26
|
|
|
0.74
|
|
|
0.51
|
|
Amortization of
developed technology
|
0.04
|
|
|
0.02
|
|
|
0.08
|
|
|
0.04
|
|
Amortization of
purchased intangibles
|
0.05
|
|
|
0.01
|
|
|
0.09
|
|
|
0.03
|
|
Acquisition related
costs
|
0.02
|
|
|
0.01
|
|
|
0.09
|
|
|
0.01
|
|
Restructuring and
other exit costs, net
|
—
|
|
|
0.06
|
|
|
—
|
|
|
0.16
|
|
(Gain) loss on
strategic investments and dispositions, net
|
(0.01)
|
|
|
(0.02)
|
|
|
0.01
|
|
|
(0.03)
|
|
Discrete GAAP tax
items
|
0.01
|
|
|
(0.04)
|
|
|
—
|
|
|
(0.04)
|
|
Income tax effect of
non-GAAP adjustments
|
(0.04)
|
|
|
0.07
|
|
|
0.02
|
|
|
0.14
|
|
Non-GAAP diluted net
income per share
|
$
|
0.65
|
|
|
$
|
0.19
|
|
|
$
|
1.10
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
GAAP diluted shares
used in per share calculation
|
222.4
|
|
|
219.0
|
|
|
222.3
|
|
|
218.8
|
|
Shares included in
non-GAAP net income per share, but excluded from GAAP net loss per
share as they would have been anti-dilutive
|
—
|
|
|
3.2
|
|
|
—
|
|
|
3.2
|
|
Non-GAAP diluted
weighted average shares used in per share calculation
|
222.4
|
|
|
222.2
|
|
|
222.3
|
|
|
222.0
|
|
Reconciliation of
GAAP net cash provided by operating activities to non-GAAP free
cash flow
|
|
|
Net cash
provided by
operating
activities
|
|
Capital
expenditures
|
|
Free cash
flow
|
Fiscal year ending
January 31, 2019
|
$
|
377.1
|
|
|
$
|
(67.0)
|
|
|
$
|
310.1
|
|
Less six months
ending July 31, 2018
|
26.4
|
|
|
(36.7)
|
|
|
(10.3)
|
|
Plus six months
ending July 31, 2019
|
440.5
|
|
|
(29.5)
|
|
|
411.0
|
|
Last twelve months
ending July 31, 2019
|
$
|
791.2
|
|
|
$
|
(59.8)
|
|
|
$
|
731.4
|
|
|
|
|
|
|
|
|
Net cash
provided by
operating
activities
|
|
Capital
expenditures
|
|
Free cash
flow
|
Six months ending
July 31, 2019
|
$
|
440.5
|
|
|
$
|
(29.5)
|
|
|
$
|
411.0
|
|
Less three months
ending April 30, 2019
|
221.2
|
|
|
(14.7)
|
|
|
206.5
|
|
Three months ending
July 31, 2019
|
$
|
219.3
|
|
|
$
|
(14.8)
|
|
|
$
|
204.5
|
|
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SOURCE Autodesk, Inc.