SAN RAFAEL, Calif.,
Aug. 25, 2020 /PRNewswire/
-- Autodesk, Inc. (NASDAQ: ADSK) today reported financial
results for the second quarter of fiscal 2021.
All growth rates are compared to the second quarter of fiscal
2020 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.
Second Quarter Fiscal 2021 Financial Highlights
- Total revenue increased 15 percent to $913 million;
- GAAP operating margin was 16 percent, up 7 percentage
points;
- Non-GAAP operating margin was 29 percent, up 5 percentage
points;
- GAAP diluted EPS was $0.44;
Non-GAAP diluted EPS was $0.98;
- Cash flow from operating activities was $91 million; free cash flow was $64 million.
"We delivered a strong second quarter as a result of our
resilient business model and strategic nature of our products,"
said Andrew Anagnost, Autodesk
president and CEO. "Our cloud-based solutions are helping our
customers stay productive in the current environment, and have
resulted in expanded relationships and usage of our products. I am
very proud of our team as we continue to deliver on our long-term
strategic goals, and remain confident in our growth drivers and
fiscal 2023 targets."
"With solid performance across all key metrics, our second
quarter results demonstrated the strength of our business,"
said Scott Herren, Autodesk CFO. "As
a result of our adaptability, outstanding execution in a difficult
environment, and healthy renewal rates, we delivered 15 percent
year-over-year growth in revenue, expanded our operating margin by
5 percentage points, and delivered robust free cash flow."
Additional Financial Details
- Total billings decreased 12 percent to $787 million.
- Total revenue was $913 million,
an increase of 15 percent as reported, and 16 percent on a constant
currency basis. Recurring revenue represents 98 percent of
total.
- Design* revenue was $821 million,
an increase of 15 percent as reported, and 16 percent on a constant
currency basis. On a sequential basis, Design revenue increased 3
percent as reported and on a constant currency basis.
- Make* revenue was $71 million, an
increase of 37 percent as reported, and 38 percent on a constant
currency basis. On a sequential basis, Make revenue increased 5
percent as reported, and 6 percent on a constant currency
basis.
- Subscription plan revenue was $841
million, an increase of 27 percent as reported, and 28
percent on a constant currency basis. On a sequential basis,
subscription plan revenue increased 5 percent as reported and on a
constant currency basis.
- Maintenance plan revenue was $51
million, a decrease of 51 percent as reported, and 49
percent on a constant currency basis. On a sequential basis,
maintenance plan revenue decreased 18 percent as reported, and 17
percent on a constant currency basis.
- Net revenue retention rate was within the range of 100 to 110
percent.
- GAAP operating income was $146
million, compared to $74
million in the second quarter last year. GAAP operating
margin was 16 percent, up 7 percentage points.
- Total non-GAAP operating income was $262
million, compared to $187
million in the second quarter last year. Non-GAAP operating
margin was 29 percent, up 5 percentage points.
- GAAP diluted net income per share was $0.44, compared to $0.18 in the second quarter last year.
- Non-GAAP diluted net income per share was $0.98, compared to $0.65 in the second quarter last year.
- Deferred revenue increased 28 percent to $2.88 billion. Unbilled deferred revenue was
$469 million, a decrease of
$95 million compared to the second
quarter of last year. Remaining performance obligations (RPO)
increased 19 percent to $3.3 billion.
Current RPO increased 15 percent to $2.3
billion.
- Cash flow from operating activities was $91 million, a decrease of $128 million compared to the second quarter last
year. Free cash flow was $64 million,
a decrease of $140 million compared
to the second quarter last year.
*Please refer to
appendix for definitions.
|
Second Quarter Fiscal 2021 Business Highlights
Net Revenue by Geographic Area
(In millions,
except percentages)
|
Three
Months
Ended July
31,
2020
|
|
Three
Months
Ended July
31,
2019
|
|
Change
compared to
prior
fiscal year
|
|
Constant
currency
change compared
to
prior fiscal
year
|
$
|
|
%
|
|
%
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
U.S.
|
$
|
309.5
|
|
|
$
|
267.9
|
|
|
$
|
41.6
|
|
|
16
|
%
|
|
*
|
|
Other
Americas
|
62.0
|
|
|
58.0
|
|
|
4.0
|
|
|
7
|
%
|
|
*
|
|
Total
Americas
|
371.5
|
|
|
325.9
|
|
|
45.6
|
|
|
14
|
%
|
|
14
|
%
|
EMEA
|
354.7
|
|
|
316.2
|
|
|
38.5
|
|
|
12
|
%
|
|
16
|
%
|
APAC
|
186.9
|
|
|
154.7
|
|
|
32.2
|
|
|
21
|
%
|
|
21
|
%
|
Total Net
Revenue
|
$
|
913.1
|
|
|
$
|
796.8
|
|
|
$
|
116.3
|
|
|
15
|
%
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
Emerging
Economies
|
$
|
113.7
|
|
|
$
|
97.4
|
|
|
$
|
16.3
|
|
|
17
|
%
|
|
17
|
%
|
____________________
|
* 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").
(In millions,
except percentages)
|
Three Months
Ended July 31,
2020
|
|
Three Months
Ended July 31,
2019
|
|
Change compared to
prior fiscal year
|
|
$
|
|
%
|
AEC
|
$
|
397.0
|
|
|
$
|
334.2
|
|
|
$
|
62.8
|
|
|
19
|
%
|
AutoCAD and AutoCAD
LT
|
271.9
|
|
|
231.3
|
|
|
40.6
|
|
|
18
|
%
|
MFG
|
185.5
|
|
|
174.6
|
|
|
10.9
|
|
|
6
|
%
|
M&E
|
53.3
|
|
|
50.8
|
|
|
2.5
|
|
|
5
|
%
|
Other
|
5.4
|
|
|
5.9
|
|
|
(0.5)
|
|
|
(8)
|
%
|
|
$
|
913.1
|
|
|
$
|
796.8
|
|
|
$
|
116.3
|
|
|
15
|
%
|
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 2021 takes into consideration the current
economic environment and foreign exchange currency rate
environment. A reconciliation between the fiscal 2021 GAAP and
non-GAAP estimates is provided below or in the tables following
this press release.
Third Quarter Fiscal 2021
Q3 FY21 Guidance
Metrics
|
Q3
FY21
(ending October
31, 2020)
|
Revenue (in
millions)
|
$930 -
$945
|
EPS
GAAP
|
$0.42 -
$0.48
|
EPS non-GAAP
(1)
|
$0.91 -
$0.97
|
_______________
|
(1) Non-GAAP earnings
per diluted share excludes $0.45 related to stock-based
compensation expense, $0.07 for the amortization of
acquisition-related intangibles, $0.01 for acquisition-related
costs, and ($0.04) related to GAAP-only tax charges.
|
Full Year Fiscal 2021
FY21 Guidance
Metrics
|
FY21
(ending January
31, 2021)
|
Billings (in
millions) (1)
|
$4,070 -
$4,170
Down (3.0%) -
(0.5%)
|
Revenue (in
millions) (1)
|
$3,715 -
$3,765
Up 13.5% -
15.0%
|
GAAP operating
margin
|
14.5% -
16.0%
|
Non-GAAP operating
margin (2)
|
27.5% -
29.0%
|
EPS
GAAP
|
$1.63 -
$1.81
|
EPS non-GAAP
(3)
|
$3.72 -
$3.90
|
Free cash flow (in
millions) (4)
|
$1,300 -
$1,400
|
_______________
|
(1) Excluding the
approximately $20 million impact of foreign currency exchange rates
and hedge gains/losses, billings guidance would be $4,090 - $4,190
million and revenue guidance would be $3,735 - $3,785
million.
|
(2) Non-GAAP
operating margin excludes approximately 11% related to stock-based
compensation expense, approximately 2% for the amortization of
acquisition-related intangibles, and less than 1% related to
acquisition-related costs.
|
(3) Non-GAAP earnings
per diluted share excludes $1.80 related to stock-based
compensation expense, $0.30 for the amortization of
acquisition-related intangibles, $0.14 related to losses on
strategic investments and dispositions, $0.04 related to
acquisition-related costs, partially offset by ($0.19) related to a
GAAP-only tax benefit.
|
(4) Free cash flow is
cash flow from operating activities less approximately $95 million
of capital expenditures.
|
The third quarter and full-year fiscal 2021 outlook assume a
projected annual effective tax rate of 23 percent and 16 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 second 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 providing additional information can be
found at autodesk.com/investor.
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.
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.
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, BIM 360, BuildingConnected, PlanGrid, Fusion 360 and
Shotgun. 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 subscription and maintenance revenue for
the population of customers that existed one year ago ("base
customers"). Net revenue retention rate is calculated by
dividing the current quarter subscription and maintenance revenue
related to base customers by the total corresponding quarter
subscription and maintenance revenue from one year ago.
Subscription and maintenance 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.
Subscription and maintenance 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. Beginning with the first
quarter of fiscal 2021, Autodesk modified its definition of NR3 to
the definition above. The effect of this change is not
material for the periods presented.
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 (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 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; developments in the COVID-19
pandemic and the resulting impact on our business and operations;
general market, political, economic, and business conditions,
including from an economic downturn or recession in the United States or in other countries around
the world; 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 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 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 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.
© 2020 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,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
Net
revenue:
|
|
|
|
|
|
|
|
Subscription
|
$
|
841.2
|
|
|
$
|
663.7
|
|
|
$
|
1,644.2
|
|
|
$
|
1,259.5
|
|
Maintenance
|
51.2
|
|
|
103.5
|
|
|
113.3
|
|
|
215.5
|
|
Total subscription and maintenance revenue
|
892.4
|
|
|
767.2
|
|
|
1,757.5
|
|
|
1,475.0
|
|
Other
|
20.7
|
|
|
29.6
|
|
|
41.3
|
|
|
57.3
|
|
Total net
revenue
|
913.1
|
|
|
796.8
|
|
|
1,798.8
|
|
|
1,532.3
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Cost of subscription
and maintenance revenue
|
58.5
|
|
|
53.0
|
|
|
115.9
|
|
|
112.7
|
|
Cost of other
revenue
|
15.0
|
|
|
17.9
|
|
|
32.1
|
|
|
31.7
|
|
Amortization of
developed technology
|
7.4
|
|
|
8.6
|
|
|
14.8
|
|
|
17.8
|
|
Total cost of
revenue
|
80.9
|
|
|
79.5
|
|
|
162.8
|
|
|
162.2
|
|
Gross
profit
|
832.2
|
|
|
717.3
|
|
|
1,636.0
|
|
|
1,370.1
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Marketing and
sales
|
350.9
|
|
|
316.8
|
|
|
692.2
|
|
|
630.1
|
|
Research and
development
|
232.5
|
|
|
215.4
|
|
|
449.9
|
|
|
421.0
|
|
General and
administrative
|
93.2
|
|
|
101.4
|
|
|
198.0
|
|
|
200.5
|
|
Amortization of
purchased intangibles
|
9.5
|
|
|
9.7
|
|
|
19.2
|
|
|
19.5
|
|
Restructuring and
other exit costs, net
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.4
|
|
Total operating
expenses
|
686.1
|
|
|
643.5
|
|
|
1,359.3
|
|
|
1,271.5
|
|
Income from
operations
|
146.1
|
|
|
73.8
|
|
|
276.7
|
|
|
98.6
|
|
Interest and other
expense, net
|
(17.1)
|
|
|
(7.3)
|
|
|
(57.2)
|
|
|
(23.5)
|
|
Income before income
taxes
|
129.0
|
|
|
66.5
|
|
|
219.5
|
|
|
75.1
|
|
Provision for income
taxes
|
(30.8)
|
|
|
(26.3)
|
|
|
(54.8)
|
|
|
(59.1)
|
|
Net income
|
$
|
98.2
|
|
|
$
|
40.2
|
|
|
$
|
164.7
|
|
|
$
|
16.0
|
|
Basic net income per
share
|
$
|
0.45
|
|
|
$
|
0.18
|
|
|
$
|
0.75
|
|
|
$
|
0.07
|
|
Diluted net income
per share
|
$
|
0.44
|
|
|
$
|
0.18
|
|
|
$
|
0.74
|
|
|
$
|
0.07
|
|
Weighted average
shares used in computing basic net income per share
|
219.2
|
|
|
219.6
|
|
|
219.2
|
|
|
219.6
|
|
Weighted average
shares used in computing diluted net income per share
|
222.2
|
|
|
222.4
|
|
|
222.0
|
|
|
222.3
|
|
Autodesk,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(In
millions)
|
|
|
|
|
|
July 31,
2020
|
|
January 31,
2020
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
1,439.8
|
|
|
$
|
1,774.7
|
|
Marketable
securities
|
79.7
|
|
|
69.0
|
|
Accounts receivable,
net
|
490.1
|
|
|
652.3
|
|
Prepaid expenses and
other current assets
|
194.3
|
|
|
163.3
|
|
Total current
assets
|
2,203.9
|
|
|
2,659.3
|
|
Computer equipment,
software, furniture and leasehold improvements, net
|
177.8
|
|
|
161.7
|
|
Operating lease
right-of-use assets
|
416.2
|
|
|
438.8
|
|
Developed
technologies, net
|
61.0
|
|
|
70.9
|
|
Goodwill
|
2,459.1
|
|
|
2,445.0
|
|
Deferred income
taxes, net
|
51.5
|
|
|
56.4
|
|
Long-term other
assets
|
377.8
|
|
|
347.2
|
|
Total
assets
|
$
|
5,747.3
|
|
|
$
|
6,179.3
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
99.2
|
|
|
$
|
83.7
|
|
Accrued
compensation
|
193.6
|
|
|
272.1
|
|
Accrued income
taxes
|
32.5
|
|
|
21.2
|
|
Deferred
revenue
|
2,102.1
|
|
|
2,176.1
|
|
Operating lease
liabilities
|
53.8
|
|
|
48.1
|
|
Current portion of
long-term notes payable, net
|
—
|
|
|
449.7
|
|
Other accrued
liabilities
|
138.4
|
|
|
168.3
|
|
Total current
liabilities
|
2,619.6
|
|
|
3,219.2
|
|
Long-term deferred
revenue
|
776.8
|
|
|
831.0
|
|
Long-term operating
lease liabilities
|
393.3
|
|
|
411.7
|
|
Long-term income
taxes payable
|
20.2
|
|
|
19.1
|
|
Long-term deferred
income taxes
|
89.9
|
|
|
82.5
|
|
Long-term notes
payable, net
|
1,636.1
|
|
|
1,635.1
|
|
Long-term other
liabilities
|
144.1
|
|
|
119.8
|
|
Stockholders' equity
(deficit):
|
|
|
|
Common stock and
additional paid-in capital
|
2,492.7
|
|
|
2,317.0
|
|
Accumulated other
comprehensive loss
|
(154.5)
|
|
|
(160.3)
|
|
Accumulated
deficit
|
(2,270.9)
|
|
|
(2,295.8)
|
|
Total stockholders'
equity (deficit)
|
67.3
|
|
|
(139.1)
|
|
Total liabilities and
stockholders' equity (deficit)
|
$
|
5,747.3
|
|
|
$
|
6,179.3
|
|
Autodesk,
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
millions)
|
|
|
|
|
|
Six Months Ended
July 31,
|
|
2020
|
|
2019
|
|
(Unaudited)
|
Operating
activities:
|
|
|
|
Net income
|
$
|
164.7
|
|
|
$
|
16.0
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation,
amortization and accretion
|
60.0
|
|
|
64.8
|
|
Stock-based
compensation expense
|
194.1
|
|
|
163.4
|
|
Deferred income
taxes
|
14.5
|
|
|
35.8
|
|
Restructuring and
other exit costs, net
|
—
|
|
|
0.4
|
|
Other
|
36.0
|
|
|
(4.2)
|
|
Changes in operating
assets and liabilities
|
|
|
|
Accounts
receivable
|
162.7
|
|
|
125.8
|
|
Prepaid expenses and
other assets
|
(52.0)
|
|
|
27.4
|
|
Accounts payable and
other liabilities
|
(42.8)
|
|
|
(138.1)
|
|
Deferred
revenue
|
(130.0)
|
|
|
158.3
|
|
Accrued income
taxes
|
11.3
|
|
|
(9.1)
|
|
Net cash provided by
operating activities
|
418.5
|
|
|
440.5
|
|
Investing
activities:
|
|
|
|
Purchases of
marketable securities
|
(17.0)
|
|
|
(19.9)
|
|
Sales of marketable
securities
|
—
|
|
|
22.4
|
|
Maturities of
marketable securities
|
11.0
|
|
|
5.0
|
|
Capital
expenditures
|
(46.7)
|
|
|
(29.5)
|
|
Purchases of
developed technologies
|
(4.8)
|
|
|
—
|
|
Other investing
activities
|
(54.3)
|
|
|
(10.5)
|
|
Net cash used in
investing activities
|
(111.8)
|
|
|
(32.5)
|
|
Financing
activities:
|
|
|
|
Proceeds from
issuance of common stock, net of issuance costs
|
58.5
|
|
|
49.7
|
|
Taxes paid related to
net share settlement of equity awards
|
(39.6)
|
|
|
(31.2)
|
|
Repurchases of common
stock
|
(209.0)
|
|
|
(134.6)
|
|
Repayment of
debt
|
(450.0)
|
|
|
(250.0)
|
|
Other financing
activities
|
(2.5)
|
|
|
—
|
|
Net cash used in
financing activities
|
(642.6)
|
|
|
(366.1)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
1.0
|
|
|
(4.0)
|
|
Net (decrease)
increase in cash and cash equivalents
|
(334.9)
|
|
|
37.9
|
|
Cash and cash
equivalents at beginning of period
|
1,774.7
|
|
|
886.0
|
|
Cash and cash
equivalents at end of period
|
$
|
1,439.8
|
|
|
$
|
923.9
|
|
|
|
|
|
Supplemental cash
flow disclosure:
|
|
|
|
Non-cash financing
activities:
|
|
|
|
Fair value of common
stock issued to settle liability-classified restricted stock
units
|
$
|
28.7
|
|
|
$
|
—
|
|
Autodesk,
Inc.
|
Reconciliation of
GAAP financial measures to non-GAAP financial
measures
|
(In millions,
except per share data)
|
|
To supplement our
condensed 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 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 non-GAAP results reconciled to GAAP results
included in this release.
|
|
|
|
|
|
Three Months Ended
July 31,
|
|
Six Months Ended
July 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
GAAP cost of
subscription and maintenance revenue
|
$
|
58.5
|
|
|
$
|
53.0
|
|
|
$
|
115.9
|
|
|
$
|
112.7
|
|
Stock-based
compensation expense
|
(4.2)
|
|
|
(3.4)
|
|
|
(7.8)
|
|
|
(7.0)
|
|
Acquisition-related
costs
|
(0.1)
|
|
|
—
|
|
|
(0.3)
|
|
|
—
|
|
Non-GAAP cost of
subscription and maintenance revenue
|
$
|
54.2
|
|
|
$
|
49.6
|
|
|
$
|
107.8
|
|
|
$
|
105.7
|
|
|
|
|
|
|
|
|
|
GAAP cost of other
revenue
|
$
|
15.0
|
|
|
$
|
17.9
|
|
|
$
|
32.1
|
|
|
$
|
31.7
|
|
Stock-based
compensation expense
|
(1.6)
|
|
|
(1.4)
|
|
|
(3.1)
|
|
|
(2.7)
|
|
Non-GAAP cost of
other revenue
|
$
|
13.4
|
|
|
$
|
16.5
|
|
|
$
|
29.0
|
|
|
$
|
29.0
|
|
|
|
|
|
|
|
|
|
GAAP amortization of
developed technologies
|
$
|
7.4
|
|
|
$
|
8.6
|
|
|
$
|
14.8
|
|
|
$
|
17.8
|
|
Amortization of
developed technologies
|
(7.4)
|
|
|
(8.6)
|
|
|
(14.8)
|
|
|
(17.8)
|
|
Non-GAAP amortization
of developed technologies
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
832.2
|
|
|
$
|
717.3
|
|
|
$
|
1,636.0
|
|
|
$
|
1,370.1
|
|
Stock-based
compensation expense
|
5.8
|
|
|
4.8
|
|
|
10.9
|
|
|
9.7
|
|
Amortization of
developed technologies
|
7.4
|
|
|
8.6
|
|
|
14.8
|
|
|
17.8
|
|
Acquisition-related
costs
|
0.1
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
Non-GAAP gross
profit
|
$
|
845.5
|
|
|
$
|
730.7
|
|
|
$
|
1,662.0
|
|
|
$
|
1,397.6
|
|
|
|
|
|
|
|
|
|
GAAP marketing and
sales
|
$
|
350.9
|
|
|
$
|
316.8
|
|
|
$
|
692.2
|
|
|
$
|
630.1
|
|
Stock-based
compensation expense
|
(43.4)
|
|
|
(36.0)
|
|
|
(84.1)
|
|
|
(68.5)
|
|
Acquisition-related
costs
|
(1.6)
|
|
|
(0.1)
|
|
|
(3.3)
|
|
|
(0.1)
|
|
Non-GAAP marketing
and sales
|
$
|
305.9
|
|
|
$
|
280.7
|
|
|
$
|
604.8
|
|
|
$
|
561.5
|
|
|
|
|
|
|
|
|
|
GAAP research and
development
|
$
|
232.5
|
|
|
$
|
215.4
|
|
|
$
|
449.9
|
|
|
$
|
421.0
|
|
Stock-based
compensation expense
|
(35.2)
|
|
|
(30.8)
|
|
|
(68.2)
|
|
|
(57.5)
|
|
Acquisition-related
costs
|
(0.4)
|
|
|
(0.4)
|
|
|
(0.4)
|
|
|
(0.4)
|
|
Non-GAAP research and
development
|
$
|
196.9
|
|
|
$
|
184.2
|
|
|
$
|
381.3
|
|
|
$
|
363.1
|
|
|
|
|
|
|
|
|
|
GAAP general and
administrative
|
$
|
93.2
|
|
|
$
|
101.4
|
|
|
$
|
198.0
|
|
|
$
|
200.5
|
|
Stock-based
compensation expense
|
(11.5)
|
|
|
(16.6)
|
|
|
(30.9)
|
|
|
(27.7)
|
|
Acquisition-related
costs
|
(1.4)
|
|
|
(5.5)
|
|
|
(1.4)
|
|
|
(18.2)
|
|
Non-GAAP general and
administrative
|
$
|
80.3
|
|
|
$
|
79.3
|
|
|
$
|
165.7
|
|
|
$
|
154.6
|
|
|
|
|
|
|
|
|
|
GAAP amortization of
purchased intangibles
|
$
|
9.5
|
|
|
$
|
9.7
|
|
|
$
|
19.2
|
|
|
$
|
19.5
|
|
Amortization of
purchased intangibles
|
(9.5)
|
|
|
(9.7)
|
|
|
(19.2)
|
|
|
(19.5)
|
|
Non-GAAP amortization
of purchased intangibles
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
GAAP restructuring
and other exit costs, net
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
0.4
|
|
Restructuring and
other exit costs, net
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
(0.4)
|
|
Non-GAAP
restructuring and other exit costs, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
686.1
|
|
|
$
|
643.5
|
|
|
$
|
1,359.3
|
|
|
$
|
1,271.5
|
|
Stock-based
compensation expense
|
(90.1)
|
|
|
(83.4)
|
|
|
(183.2)
|
|
|
(153.7)
|
|
Amortization of
purchased intangibles
|
(9.5)
|
|
|
(9.7)
|
|
|
(19.2)
|
|
|
(19.5)
|
|
Acquisition-related
costs
|
(3.4)
|
|
|
(6.0)
|
|
|
(5.1)
|
|
|
(18.7)
|
|
Restructuring and
other exit costs, net
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
(0.4)
|
|
Non-GAAP operating
expenses
|
$
|
583.1
|
|
|
$
|
544.2
|
|
|
$
|
1,151.8
|
|
|
$
|
1,079.2
|
|
|
|
|
|
|
|
|
|
GAAP spend
|
$
|
767.0
|
|
|
$
|
723.0
|
|
|
$
|
1,522.1
|
|
|
$
|
1,433.7
|
|
Stock-based
compensation expense
|
(95.9)
|
|
|
(88.2)
|
|
|
(194.1)
|
|
|
(163.4)
|
|
Amortization of
developed technologies
|
(7.4)
|
|
|
(8.6)
|
|
|
(14.8)
|
|
|
(17.8)
|
|
Amortization of
purchased intangibles
|
(9.5)
|
|
|
(9.7)
|
|
|
(19.2)
|
|
|
(19.5)
|
|
Acquisition-related
costs
|
(3.5)
|
|
|
(6.0)
|
|
|
(5.4)
|
|
|
(18.7)
|
|
Restructuring and
other exit costs, net
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
(0.4)
|
|
Non-GAAP
spend
|
$
|
650.7
|
|
|
$
|
610.3
|
|
|
$
|
1,288.6
|
|
|
$
|
1,213.9
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
16
|
%
|
|
9
|
%
|
|
15
|
%
|
|
6
|
%
|
Stock-based
compensation expense
|
11
|
%
|
|
11
|
%
|
|
11
|
%
|
|
11
|
%
|
Amortization of
developed technologies
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
Amortization of
purchased intangibles
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
Acquisition-related
costs
|
—
|
%
|
|
1
|
%
|
|
—
|
%
|
|
1
|
%
|
Non-GAAP operating
margin (1)
|
29
|
%
|
|
23
|
%
|
|
28
|
%
|
|
21
|
%
|
|
|
|
|
|
|
|
|
GAAP income from
operations
|
$
|
146.1
|
|
|
$
|
73.8
|
|
|
$
|
276.7
|
|
|
$
|
98.6
|
|
Stock-based
compensation expense
|
95.9
|
|
|
88.2
|
|
|
194.1
|
|
|
163.4
|
|
Amortization of
developed technologies
|
7.4
|
|
|
8.6
|
|
|
14.8
|
|
|
17.8
|
|
Amortization of
purchased intangibles
|
9.5
|
|
|
9.7
|
|
|
19.2
|
|
|
19.5
|
|
Acquisition-related
costs
|
3.5
|
|
|
6.0
|
|
|
5.4
|
|
|
18.7
|
|
Restructuring and
other exit costs, net
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.4
|
|
Non-GAAP income from
operations
|
$
|
262.4
|
|
|
$
|
186.5
|
|
|
$
|
510.2
|
|
|
$
|
318.4
|
|
|
|
|
|
|
|
|
|
GAAP interest and
other expense, net
|
$
|
(17.1)
|
|
|
$
|
(7.3)
|
|
|
$
|
(57.2)
|
|
|
$
|
(23.5)
|
|
Loss (gain) on
strategic investments and dispositions, net
|
14.3
|
|
|
(2.2)
|
|
|
30.9
|
|
|
2.8
|
|
Non-GAAP interest and
other expense, net
|
$
|
(2.8)
|
|
|
$
|
(9.5)
|
|
|
$
|
(26.3)
|
|
|
$
|
(20.7)
|
|
|
|
|
|
|
|
|
|
GAAP provision for
income taxes
|
$
|
(30.8)
|
|
|
$
|
(26.3)
|
|
|
$
|
(54.8)
|
|
|
$
|
(59.1)
|
|
Discrete GAAP tax
items
|
0.6
|
|
|
3.3
|
|
|
1.1
|
|
|
1.0
|
|
Income tax effect of
non-GAAP adjustments
|
(11.4)
|
|
|
(8.9)
|
|
|
(23.8)
|
|
|
4.5
|
|
Non-GAAP provision
for income tax
|
$
|
(41.6)
|
|
|
$
|
(31.9)
|
|
|
$
|
(77.5)
|
|
|
$
|
(53.6)
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
|
98.2
|
|
|
$
|
40.2
|
|
|
$
|
164.7
|
|
|
$
|
16.0
|
|
Stock-based
compensation expense
|
95.9
|
|
|
88.2
|
|
|
194.1
|
|
|
163.4
|
|
Amortization of
developed technologies
|
7.4
|
|
|
8.6
|
|
|
14.8
|
|
|
17.8
|
|
Amortization of
purchased intangibles
|
9.5
|
|
|
9.7
|
|
|
19.2
|
|
|
19.5
|
|
Acquisition-related
costs
|
3.5
|
|
|
6.0
|
|
|
5.4
|
|
|
18.7
|
|
Restructuring and
other exit costs, net
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.4
|
|
Loss (gain) on
strategic investments and dispositions, net
|
14.3
|
|
|
(2.2)
|
|
|
30.9
|
|
|
2.8
|
|
Discrete GAAP tax
items
|
0.6
|
|
|
3.3
|
|
|
1.1
|
|
|
1.0
|
|
Income tax effect of
non-GAAP adjustments
|
(11.4)
|
|
|
(8.9)
|
|
|
(23.8)
|
|
|
4.5
|
|
Non-GAAP net
income
|
$
|
218.0
|
|
|
$
|
145.1
|
|
|
$
|
406.4
|
|
|
$
|
244.1
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
income per share
|
$
|
0.44
|
|
|
$
|
0.18
|
|
|
$
|
0.74
|
|
|
$
|
0.07
|
|
Stock-based
compensation expense
|
0.43
|
|
|
0.40
|
|
|
0.87
|
|
|
0.74
|
|
Amortization of
developed technologies
|
0.03
|
|
|
0.04
|
|
|
0.07
|
|
|
0.08
|
|
Amortization of
purchased intangibles
|
0.04
|
|
|
0.05
|
|
|
0.09
|
|
|
0.09
|
|
Acquisition-related
costs
|
0.03
|
|
|
0.02
|
|
|
0.03
|
|
|
0.09
|
|
Loss (gain) on
strategic investments and dispositions, net
|
0.06
|
|
|
(0.01)
|
|
|
0.14
|
|
|
0.01
|
|
Discrete GAAP tax
items
|
—
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
Income tax effect of
non-GAAP adjustments
|
(0.05)
|
|
|
(0.04)
|
|
|
(0.11)
|
|
|
0.02
|
|
Non-GAAP diluted net
income per share
|
$
|
0.98
|
|
|
$
|
0.65
|
|
|
$
|
1.83
|
|
|
$
|
1.10
|
|
____________________
|
(1) Totals may not
sum due to rounding.
|
Reconciliation of
GAAP net cash provided by operating activities to non-GAAP free
cash flow (unaudited)
|
|
(In
millions)
|
Net
Cash
Provided
by
Operating
Activities
|
|
Capital
Expenditures
|
|
Free Cash
Flow
|
Six months ending
July 31, 2020
|
$
|
418.5
|
|
|
$
|
(46.7)
|
|
|
$
|
371.8
|
|
Less three months
ending April 30, 2020
|
327.3
|
|
|
(19.9)
|
|
|
307.4
|
|
Three months ending
July 31, 2020
|
$
|
91.2
|
|
|
$
|
(26.8)
|
|
|
$
|
64.4
|
|
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SOURCE Autodesk, Inc.