- Third quarter revenue grew 14 percent and billings grew 16
percent year over year
- Third quarter GAAP and non-GAAP operating margin expanded
by 3 and 4 percentage points, respectively
- Board approves $5-billion
share repurchase authorization
SAN
FRANCISCO, Nov. 22, 2022 /PRNewswire/ -- Autodesk,
Inc. (NASDAQ: ADSK) today reported financial results for the third
quarter of fiscal 2023.
All growth rates are compared to the third quarter of fiscal
2022, 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.
Third Quarter Fiscal 2023 Financial
Highlights
- Total revenue increased 14 percent to $1,280 million;
- GAAP operating margin was 20 percent, up 3 percentage
points;
- Non-GAAP operating margin was 36 percent, up 4 percentage
points;
- GAAP diluted EPS was $0.91;
Non-GAAP diluted EPS was $1.70;
- Cash flow from operating activities was $469 million; free cash flow was $460 million.
"We recently announced Autodesk Fusion, Forma, and Flow, our
three industry clouds, which will connect data, teams and workflows
in the cloud on our trusted platform," said Andrew Anagnost, Autodesk president and CEO.
"Increasing our engineering velocity, moving data from files to the
cloud, and expanding our third-party ecosystem, will enable
Autodesk to further increase customer value by delivering even
greater efficiency and sustainability."
"In a more challenging macroeconomic environment, Autodesk
performed in line with our expectations in the third quarter,
excluding the impact of in-quarter currency movements on revenue.
Subscription renewal rates remained strong, as did our competitive
performance," said Debbie Clifford,
Autodesk CFO. "Our fiscal 23 revenue, margin, and earnings per
share guidance remains close to the previous mid-points at constant
exchange rates and comfortably within our prior guidance ranges.
Our lower billings and free cash flow guidance primarily reflect
less demand for multi-year, up-front and more demand for annual
contracts than we expected."
Additional Financial Details
- Total billings increased 16 percent to $1,360 million.
- Total revenue was $1,280 million,
an increase of 14 percent as reported, and 15 percent on a constant
currency basis. Recurring revenue represents 98 percent of
total.
- Design revenue was $1,087
million, an increase of 12 percent as reported, and 14
percent on a constant currency basis. On a sequential basis, Design
revenue increased 2 percent as reported and on a constant currency
basis.
- Make revenue was $117 million, an
increase of 24 percent as reported, and 26 percent on a constant
currency basis. On a sequential basis, Make revenue increased 4
percent as reported and on a constant currency basis.
- Subscription plan revenue was $1,188
million, an increase of 14 percent as reported, and 15
percent on a constant currency basis. On a sequential basis,
subscription plan revenue increased 2 percent as reported and on a
constant currency basis.
- Net revenue retention rate remained within the range of 100 to
110 percent.
- GAAP operating income was $256
million, compared to $193
million in the third quarter last year. GAAP operating
margin was 20 percent, up 3 percentage points compared to the third
quarter last year.
- Total non-GAAP operating income was $465
million, compared to $365
million in the third quarter last year. Non-GAAP operating
margin was 36 percent, up 4 percentage points compared to the third
quarter last year.
- GAAP diluted net income per share was $0.91, compared to $0.62 in the third quarter last year.
- Non-GAAP diluted net income per share was $1.70, compared to $1.34 in the third quarter last year.
- Deferred revenue increased 13 percent to $3.78 billion. Unbilled deferred revenue was
$896 million, an increase of
$8 million compared to the third
quarter of last year. Remaining performance obligations ("RPO")
increased 11 percent to $4.68
billion. Current RPO increased 9 percent to $3.14 billion.
- Cash flow from operating activities was $469 million, an increase of $198 million compared to the third quarter last
year. Free cash flow was $460
million, an increase of $203
million compared to the third quarter last year.
Third
Quarter Fiscal 2023 Business Highlights
|
|
Net Revenue by
Geographic Area
|
|
|
Three Months
Ended October 31,
2022
|
|
Three Months
Ended October 31,
2021
|
|
Change
compared to
prior
fiscal year
|
|
Constant
currency
change compared
to prior fiscal year
|
(In millions, except
percentages) (1)
|
|
|
$
|
|
%
|
|
%
|
Net Revenue:
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
U.S.
|
$
447
|
|
$
383
|
|
$ 64
|
|
17 %
|
|
*
|
Other
Americas
|
94
|
|
79
|
|
15
|
|
19 %
|
|
*
|
Total
Americas
|
541
|
|
462
|
|
79
|
|
17 %
|
|
17 %
|
EMEA
|
476
|
|
433
|
|
43
|
|
10 %
|
|
12 %
|
APAC
|
263
|
|
231
|
|
32
|
|
14 %
|
|
18 %
|
Total Net
Revenue
|
$
1,280
|
|
$
1,126
|
|
$
154
|
|
14 %
|
|
15 %
|
____________________
|
* Constant
currency data not provided at this level.
|
(1) In the current
fiscal year, the Company changed its rounding presentation to the
nearest whole number in millions of reported amounts, except per
share data or as otherwise noted. The current year rounding
presentation has been applied to all prior year amounts presented
and, in certain circumstances, this change may adjust previously
reported balances.
|
|
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 October 31,
2022
|
|
Three Months
Ended October 31,
2021
|
|
Change compared to
prior
fiscal year
|
(In millions, except
percentages) (1)
|
|
$
|
|
%
|
AEC (2)
|
$
575
|
|
$
507
|
|
$
68
|
|
13 %
|
AutoCAD and AutoCAD LT
(2)
|
354
|
|
323
|
|
31
|
|
10 %
|
MFG
|
254
|
|
225
|
|
29
|
|
13 %
|
M&E
|
78
|
|
63
|
|
15
|
|
24 %
|
Other
|
19
|
|
8
|
|
11
|
|
138 %
|
Total Net
Revenue
|
$
1,280
|
|
$
1,126
|
|
$
154
|
|
14 %
|
____________________
|
(1) In the current
fiscal year, the Company changed its rounding presentation to the
nearest whole number in millions of reported amounts, except per
share data or as otherwise noted. The current year rounding
presentation has been applied to all prior year amounts presented
and, in certain circumstances, this change may adjust previously
reported balances.
|
(2) During the current
fiscal year, the Company corrected an immaterial classification
error and reclassified certain revenue amounts between
Architecture, Engineering and Construction and AutoCAD and AutoCAD
LT. Fiscal quarters ended October 31, 2021 (presented here),
January 31, 2022, and April 30, 2022 (not presented here), were
updated to conform to the current period presentation. These
reclassifications did not impact total net
revenue.
|
|
Stock Repurchase Authorization
In November 2022, the Board of
Directors authorized the repurchase of $5 billion of the
Company's common stock, in addition to the approximately 3.8
million shares remaining, as of October 31,
2022, under previously announced share repurchase programs.
The repurchase program allows Autodesk to offset dilution and
reduce shares outstanding over time.
Under the share repurchase program, Autodesk may repurchase
shares from time to time through various means. The share
repurchase program does not have an expiration date and the pace
and timing of repurchases will depend on factors such as cash
generation from operations, available surplus, the volume of
employee stock plan activity, cash requirements for acquisitions,
economic and market conditions, stock price and legal and
regulatory requirements.
In the first nine months of fiscal 2023, Autodesk repurchased
approximately 4.4 million shares of its common stock at an average
price of approximately $200 per
share.
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 fourth
quarter and full-year fiscal 2023 considers the current
economic environment and foreign exchange currency rate
environment. A reconciliation between the fiscal 2023 GAAP and
non-GAAP estimates is provided below or in the tables following
this press release.
Fourth Quarter Fiscal
2023
|
|
Q4 FY23 Guidance
Metrics
|
|
Q4 FY23
(ending January 31, 2023)
|
Revenue (in
millions)
|
|
$1,303 -
$1,318
|
EPS
GAAP
|
|
$0.99 -
$1.05
|
EPS non-GAAP
(1)
|
|
$1.77 -
$1.83
|
____________________
|
(1) Non-GAAP earnings
per diluted share excludes $0.74 related to stock-based
compensation expense, $0.11 for the amortization of purchased
intangibles, $0.04 for lease-related asset impairments and other
charges, and $0.01 for acquisition-related costs, partially offset
by ($0.12) related to GAAP-only tax charges.
|
|
FY23 Guidance
Metrics
|
|
FY23
(ending January 31, 2023)
|
Billings (in
millions) (1)
|
|
$5,570 -
$5,670
Up 16% - 18%
|
Revenue (in
millions) (2)
|
|
$4,990 -
$5,005
Up Approx. 14%
|
GAAP operating
margin
|
|
Approx. 20%
|
Non-GAAP operating
margin (3)
|
|
Approx. 36%
|
EPS
GAAP
|
|
$3.43 -
$3.49
|
EPS non-GAAP
(4)
|
|
$6.56 -
$6.62
|
Free cash flow (in
millions) (5)
|
|
$1,900 -
$1,980
|
____________________
|
(1) Excluding the
approximately $195 million impact of foreign currency exchange
rates and hedge gains/losses, billings guidance would be $5,765 -
$5,865 million.
|
(2) Excluding the
approximately $80 million impact of foreign currency exchange rates
and hedge gains/losses, revenue guidance would be $5,070 - $5,085
million.
|
(3) Non-GAAP operating
margin excludes approximately 13% related to stock-based
compensation expense, approximately 2% for the amortization of
purchased intangibles, less than 1% related to acquisition-related
costs, and less than 1% related to lease-related asset impairments
and other charges.
|
(4) Non-GAAP earnings
per diluted share excludes $3.02 related to stock-based
compensation expense, $0.43 for the amortization of purchased
intangibles, $0.13 related to lease-related asset impairments and
other charges, and $0.04 related to acquisition-related costs,
partially offset by ($0.46) related to GAAP-only tax charges and
($0.03) related to gains on strategic investments and
dispositions.
|
(5) Free cash flow is
cash flow from operating activities less approximately $50 million
of capital expenditures.
|
|
The fourth quarter and full-year fiscal 2023 outlook assume a
projected annual effective tax rate of 20 percent and 17 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.
Therefore, 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 third quarter conference call today at
5 p.m. ET. The live broadcast can be
accessed at 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 p.m. ET at autodesk.com/investor. This replay
will be maintained on Autodesk's website for at least 12
months.
Investor Presentation Details
An investor presentation, excel financials and other
supplemental materials providing additional information can be
found at autodesk.com/investor.
Key Performance Metrics
To help better understand our financial performance, we use
several key performance metrics including billings, recurring
revenue and net revenue retention rate ("NR3"). These metrics are
key performance metrics and should be viewed independently of
revenue and deferred revenue. These metrics are not intended to be
combined with those items. We use these metrics to monitor the
strength of our recurring business. We believe these metrics are
useful to investors because they can help in monitoring the
long-term health of our business. Our determination and
presentation of these metrics may differ from that of other
companies. The presentation of these metrics is meant to be
considered in addition to, not as a substitute for or in isolation
from, our financial measures prepared in accordance with GAAP.
Glossary of Terms
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.
Design Business: Represents the combination of
maintenance, product subscriptions, and all EBAs. Main products
include, but are not limited to, AutoCAD, AutoCAD LT, Industry
Collections, Revit, Inventor, Maya and 3ds Max. Certain products,
such as our computer aided manufacturing solutions, incorporate
both Design and Make functionality and are classified as
Design.
Enterprise Business Agreements (EBAs): Represents
programs providing enterprise customers with token-based access to a broad pool of Autodesk products
over a defined contract term.
Free Cash Flow: Cash flow from operating activities
minus capital expenditures.
Industry Collections: Autodesk Industry Collections
are a combination of products and services that target a specific
user objective and support a set of workflows for that objective.
Our Industry Collections consist of: Autodesk Architecture,
Engineering and Construction Collection, Autodesk Product Design
and Manufacturing Collection, and Autodesk Media and Entertainment
Collection.
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.
Make Business: Represents certain cloud-based
product subscriptions. Main products include, but are not limited
to, Assemble, Autodesk Build, BuildingConnected, Fusion 360 and
ShotGrid. Certain products, such as Fusion 360, incorporate both
Design and Make functionality and are classified as Make.
Net Revenue Retention Rate (NR3): Measures the
year-over-year change in Recurring Revenue for the population of
customers that existed one year ago ("base customers"). Net
revenue retention rate is calculated by dividing the current
quarter Recurring Revenue related to base customers by the total
corresponding quarter Recurring Revenue from one year ago.
Recurring Revenue 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. Recurring
Revenue related to acquired companies, one year after acquisition,
has been captured as existing customers until such data conforms to
the calculation methodology. This may cause variability in the
comparison.
Other Revenue: Consists of revenue from consulting,
training, and other products and services, and is recognized as the
products are delivered and services are performed.
Product Subscription: Provides customers a 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 cloud 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, our subscription
plan offerings, and certain Other revenue. It excludes subscription
revenue related to 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 (RPO): 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.
Spend: The sum of cost of revenue and operating
expenses.
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 our cloud-enabled
term-based product subscriptions, cloud service offerings, and
flexible 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 statements about our short-term and long-term goals,
statements regarding our strategies, market and product positions,
performance and results, and all statements that are not historical
facts. There are a significant number of factors that could cause
actual results to differ materially from statements made in this
press release, including: our strategy to develop and introduce new
products and services and to move to platforms and capabilities,
exposing us to risks such as limited customer acceptance, costs
related to product defects, and large expenditures; the effects of
the COVID-19 pandemic and related public health measures; global
economic and political conditions, including foreign exchange
headwinds, recessionary fears, supply chain disruptions, resulting
inflationary pressures and hiring conditions; costs and challenges
associated with strategic acquisitions and investments; dependency
on international revenue and operations, exposing us to significant
international regulatory, economic, intellectual property,
collections, currency exchange rate, taxation, political, and other
risks, including risks related to the war against Ukraine launched by Russia and our exit from Russia; inability to predict subscription
renewal rates and their impact on our future revenue and operating
results; existing and increased competition and rapidly evolving
technological changes; fluctuation of our financial results, key
metrics and other operating metrics; deriving a substantial portion
of our net revenue from a small number of solutions, including our
AutoCAD-based software products and collections; any failure to
successfully execute and manage initiatives to realign or introduce
new business and sales initiatives; net revenue, billings,
earnings, cash flow, or subscriptions shortfalls; social and
ethical issues relating to the use of artificial intelligence in
our offerings; security incidents or other incidents compromising
the integrity of our or our customers' offerings, services, data,
or intellectual property; reliance on third parties to provide us
with a number of operational and technical services as well as
software; our highly complex software, which may contain undetected
errors, defects, or vulnerabilities; increasing regulatory focus on
privacy issues and expanding laws; governmental export and import
controls that could impair our ability to compete in international
markets or subject us to liability if we violate the controls;
protection of our intellectual property rights and intellectual
property infringement claims from others; the government
procurement process; fluctuations in currency exchange rates; our
debt service obligations; and our investment portfolio consisting
of a variety of investment vehicles that are subject to interest
rate trends, market volatility, and other economic factors. 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 Form 10-K
and subsequent forms 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 is changing how the world is designed and made. Our
technology spans architecture, engineering, construction, product
design, manufacturing, media and entertainment, empowering
innovators everywhere to solve challenges big and small. From
greener buildings to smarter products to more mesmerizing
blockbusters, Autodesk software helps our customers to design and
make a better world for all. For more information visit
autodesk.com or follow @autodesk.
Autodesk uses its investors.autodesk.com website as a means of
disclosing material non-public information, announcing upcoming
investor conferences and for complying with its disclosure
obligations under Regulation FD. Accordingly, you should monitor
our investor relations website in addition to following our press
releases, SEC filings and public conference calls and webcasts.
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.
© 2022 Autodesk, Inc. All rights reserved.
Autodesk,
Inc.
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations
|
|
|
|
|
(In millions, except
per share data) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
October 31,
|
|
Nine Months
Ended
October 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
Net revenue
(2):
|
|
|
|
|
|
|
|
Subscription
|
$
1,188
|
|
$
1,043
|
|
$
3,437
|
|
$
2,967
|
Maintenance
|
16
|
|
18
|
|
51
|
|
54
|
Total subscription and maintenance revenue
|
1,204
|
|
1,061
|
|
3,488
|
|
3,021
|
Other
|
76
|
|
65
|
|
199
|
|
154
|
Total net
revenue
|
1,280
|
|
1,126
|
|
3,687
|
|
3,175
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Cost of subscription
and maintenance revenue
|
86
|
|
75
|
|
253
|
|
219
|
Cost of other
revenue
|
19
|
|
18
|
|
59
|
|
48
|
Amortization of
developed technologies
|
15
|
|
15
|
|
44
|
|
39
|
Total cost of
revenue
|
120
|
|
108
|
|
356
|
|
306
|
Gross profit
|
1,160
|
|
1,018
|
|
3,331
|
|
2,869
|
Operating
expenses:
|
|
|
|
|
|
|
|
Marketing and
sales
|
454
|
|
419
|
|
1,306
|
|
1,195
|
Research and
development
|
311
|
|
282
|
|
906
|
|
825
|
General and
administrative
|
129
|
|
113
|
|
377
|
|
344
|
Amortization of
purchased intangibles
|
10
|
|
11
|
|
30
|
|
30
|
Total operating
expenses
|
904
|
|
825
|
|
2,619
|
|
2,394
|
Income from
operations
|
256
|
|
193
|
|
712
|
|
475
|
Interest and other
expense, net
|
(14)
|
|
(5)
|
|
(43)
|
|
(17)
|
Income before income
taxes
|
242
|
|
188
|
|
669
|
|
458
|
Provision for income
taxes
|
(44)
|
|
(51)
|
|
(139)
|
|
(50)
|
Net income
|
$
198
|
|
$
137
|
|
$
530
|
|
$
408
|
Basic net income per
share
|
$
0.92
|
|
$
0.62
|
|
$
2.44
|
|
$
1.85
|
Diluted net income per
share
|
$
0.91
|
|
$
0.62
|
|
$
2.43
|
|
$
1.84
|
Weighted average shares
used in computing basic net income per share
|
216
|
|
220
|
|
217
|
|
220
|
Weighted average shares
used in computing diluted net income per share
|
217
|
|
222
|
|
218
|
|
222
|
____________________
|
(1) In the current
fiscal year, the Company changed its rounding presentation to the
nearest whole number in millions of reported amounts, except per
share data or as otherwise noted. The current year rounding
presentation has been applied to all prior year amounts presented
and, in certain circumstances, this change may adjust previously
reported balances.
|
(2) In current fiscal
year, the Company changed its presentation of certain subscription
plan offerings in our Condensed Consolidated Statement of
Operations. Revenue from subscription plan offerings in which the
customer does not utilize the cloud functionality or that do not
incorporate substantial cloud functionality, previously recorded in
"Subscription" have been reclassified to "Other" and "Maintenance,"
as applicable. Accordingly, prior period amounts have been
reclassified to conform to the current period presentation, in all
material respects. These reclassifications did not impact total net
revenue.
|
|
Autodesk,
Inc.
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
(In millions)
(1)
|
|
|
|
|
|
|
|
|
October 31,
2022
|
|
January 31,
2022
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
1,665
|
|
$
1,528
|
Marketable
securities
|
139
|
|
236
|
Accounts receivable,
net
|
642
|
|
716
|
Prepaid expenses and
other current assets
|
342
|
|
284
|
Total current
assets
|
2,788
|
|
2,764
|
Long-term marketable
securities
|
37
|
|
45
|
Computer equipment,
software, furniture and leasehold improvements, net
|
149
|
|
162
|
Operating lease
right-of-use assets
|
271
|
|
305
|
Intangible assets,
net
|
423
|
|
494
|
Goodwill
|
3,577
|
|
3,604
|
Deferred income taxes,
net
|
836
|
|
741
|
Long-term other
assets
|
554
|
|
492
|
Total assets
|
$
8,635
|
|
$
8,607
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
134
|
|
$
121
|
Accrued
compensation
|
293
|
|
341
|
Accrued income
taxes
|
40
|
|
30
|
Deferred
revenue
|
2,731
|
|
2,863
|
Operating lease
liabilities
|
82
|
|
87
|
Current portion of
long-term notes payable, net
|
350
|
|
350
|
Other accrued
liabilities
|
181
|
|
217
|
Total current
liabilities
|
3,811
|
|
4,009
|
Long-term deferred
revenue
|
1,052
|
|
927
|
Long-term operating
lease liabilities
|
323
|
|
346
|
Long-term income taxes
payable
|
85
|
|
20
|
Long-term deferred
income taxes
|
44
|
|
29
|
Long-term notes
payable, net
|
2,280
|
|
2,278
|
Long-term other
liabilities
|
134
|
|
149
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
3,213
|
|
2,923
|
Accumulated other
comprehensive loss
|
(207)
|
|
(124)
|
Accumulated
deficit
|
(2,100)
|
|
(1,950)
|
Total stockholders'
equity
|
906
|
|
849
|
Total liabilities and
stockholders' equity
|
$
8,635
|
|
$
8,607
|
____________________
|
(1) In the current
fiscal year, the Company changed its rounding presentation to the
nearest whole number in millions of reported amounts, except per
share data or as otherwise noted. The current year rounding
presentation has been applied to all prior year amounts presented
and, in certain circumstances, this change may adjust previously
reported balances.
|
|
Autodesk,
Inc.
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
(In millions)
(1)
|
|
|
|
|
|
|
|
|
Nine Months Ended
October 31,
|
|
2022
|
|
2021
|
|
(Unaudited)
|
Operating
activities:
|
|
|
|
Net income
|
$
530
|
|
$
408
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation,
amortization and accretion
|
113
|
|
114
|
Stock-based
compensation expense
|
493
|
|
410
|
Deferred income
taxes
|
(98)
|
|
15
|
Lease-related asset
impairments
|
21
|
|
—
|
Other
|
13
|
|
13
|
Changes in operating
assets and liabilities, net of business combinations:
|
|
|
|
Accounts
receivable
|
70
|
|
70
|
Prepaid expenses and
other assets
|
1
|
|
(139)
|
Accounts payable and
other liabilities
|
(76)
|
|
(67)
|
Deferred
revenue
|
14
|
|
(28)
|
Accrued income
taxes
|
79
|
|
13
|
Net cash provided by
operating activities
|
1,160
|
|
809
|
Investing
activities:
|
|
|
|
Purchases of
marketable securities
|
(199)
|
|
(56)
|
Sales and maturities
of marketable securities
|
302
|
|
4
|
Capital
expenditures
|
(32)
|
|
(50)
|
Purchases of developed
technologies
|
(6)
|
|
(10)
|
Business combinations,
net of cash acquired
|
(96)
|
|
(1,185)
|
Other investing
activities
|
(53)
|
|
(2)
|
Net cash used in
investing activities
|
(84)
|
|
(1,299)
|
Financing
activities:
|
|
|
|
Proceeds from issuance
of common stock, net of issuance costs
|
124
|
|
113
|
Taxes paid related to
net share settlement of equity awards
|
(127)
|
|
(148)
|
Repurchases of common
stock
|
(894)
|
|
(483)
|
Proceeds from debt,
net of discount
|
—
|
|
997
|
Other financing
activities
|
—
|
|
(6)
|
Net cash (used in)
provided by financing activities
|
(897)
|
|
473
|
Effect of exchange rate
changes on cash and cash equivalents
|
(42)
|
|
(6)
|
Net increase (decrease)
in cash and cash equivalents
|
137
|
|
(23)
|
Cash and cash
equivalents at beginning of period
|
1,528
|
|
1,772
|
Cash and cash
equivalents at end of period
|
$
1,665
|
|
$
1,749
|
|
|
|
|
Supplemental cash flow
disclosure:
|
|
|
|
Non-cash financing
activities:
|
|
|
|
Fair value of common
stock issued to settle liability-classified restricted common
stock
|
$
8
|
|
$
3
|
Fair value of common
stock issued related to business combinations
|
$
10
|
|
$
3
|
____________________
|
(1) In the current
fiscal year, the Company changed its rounding presentation to the
nearest whole number in millions of reported amounts, except per
share data or as otherwise noted. The current year rounding
presentation has been applied to all prior year amounts presented
and, in certain circumstances, this change may adjust previously
reported balances.
|
|
Autodesk,
Inc.
|
|
|
|
|
|
|
|
Reconciliation of
GAAP financial measures to non-GAAP financial
measures
|
(In millions, except
per share data) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
To supplement our
condensed consolidated financial statements presented on a GAAP
basis, we provide investors with certain non-GAAP measures
including non-GAAP operating margin, non-GAAP income from
operations, non-GAAP diluted net income per share, 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 condensed 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 GAAP results reconciled to non-GAAP results
included in this release.
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
Nine Months Ended
October 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
GAAP operating
margin
|
20 %
|
|
17 %
|
|
19 %
|
|
15 %
|
Stock-based
compensation expense
|
13 %
|
|
13 %
|
|
13 %
|
|
13 %
|
Amortization of
developed technologies
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
Amortization of
purchased intangibles
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
Acquisition-related
costs
|
— %
|
|
— %
|
|
— %
|
|
1 %
|
Lease-related asset
impairments and other charges
|
1 %
|
|
— %
|
|
1 %
|
|
— %
|
Non-GAAP operating
margin (1)
|
36 %
|
|
32 %
|
|
35 %
|
|
31 %
|
|
|
|
|
|
|
|
|
GAAP income from
operations
|
$
256
|
|
$
193
|
|
$
712
|
|
$
475
|
Stock-based
compensation expense
|
172
|
|
144
|
|
496
|
|
413
|
Amortization of
developed technologies
|
14
|
|
14
|
|
41
|
|
38
|
Amortization of
purchased intangibles
|
10
|
|
11
|
|
30
|
|
30
|
Acquisition-related
costs
|
1
|
|
3
|
|
7
|
|
20
|
Lease-related asset
impairments and other charges
|
12
|
|
—
|
|
20
|
|
—
|
Non-GAAP income from
operations
|
$
465
|
|
$
365
|
|
$
1,306
|
|
$
976
|
|
|
|
|
|
|
|
|
GAAP diluted net income
per share
|
$
0.91
|
|
$
0.62
|
|
$
2.43
|
|
$
1.84
|
Stock-based
compensation expense
|
0.79
|
|
0.65
|
|
2.28
|
|
1.86
|
Amortization of
developed technologies
|
0.06
|
|
0.06
|
|
0.19
|
|
0.17
|
Amortization of
purchased intangibles
|
0.05
|
|
0.05
|
|
0.14
|
|
0.14
|
Acquisition-related
costs
|
—
|
|
0.01
|
|
0.03
|
|
0.08
|
Lease-related asset
impairments and other charges
|
0.06
|
|
—
|
|
0.09
|
|
—
|
Gain on strategic
investments and dispositions, net
|
(0.03)
|
|
(0.03)
|
|
(0.04)
|
|
(0.06)
|
Discrete GAAP tax
items
|
0.01
|
|
(0.02)
|
|
(0.02)
|
|
(0.27)
|
Income tax effect of
non-GAAP adjustments
|
(0.15)
|
|
—
|
|
(0.32)
|
|
(0.18)
|
Non-GAAP diluted net
income per share
|
$
1.70
|
|
$
1.34
|
|
$
4.78
|
|
$
3.58
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
469
|
|
$
271
|
|
$
1,160
|
|
$
809
|
Capital
expenditures
|
(9)
|
|
(14)
|
|
(32)
|
|
(50)
|
Free cash
flow
|
$
460
|
|
$
257
|
|
$
1,128
|
|
$
759
|
____________________
|
(1) Totals may
not sum due to rounding.
|
(2) In the
current fiscal year, the Company changed its rounding presentation
to the nearest whole number in millions of reported amounts, except
per share data or as otherwise noted. The current year rounding
presentation has been applied to all prior year amounts presented
and, in certain circumstances, this change may adjust previously
reported balances.
|
|
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SOURCE Autodesk, Inc.