- Record quarterly and full-year revenue, cash flow from
operating activities, and free cash flow
- Fourth quarter billings and current remaining performance
obligations grew 28 percent and 12 percent year over year,
respectively, to $2.1 billion and
$3.5 billion
SAN
FRANCISCO, Feb. 23, 2023 /PRNewswire/ -- Autodesk,
Inc. (NASDAQ: ADSK) today reported financial results for the
fourth quarter and full year of fiscal 2023.
All growth rates are compared to the fourth quarter and
full year of fiscal 2022, respectively, 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.
Fourth Quarter Fiscal 2023 Financial
Highlights
- Total revenue increased 9 percent to $1.32 billion;
- GAAP operating margin was 21 percent, up 9 percentage
points;
- Non-GAAP operating margin was 36 percent, up 1 percentage
point;
- GAAP diluted EPS was $1.35;
Non-GAAP diluted EPS was $1.86;
- Cash flow from operating activities was $911 million; free cash flow was $903 million.
"As we deliver next-generation technology and services to our
customers, the pace of transformation within and between the
industries we serve will accelerate, generating large new growth
opportunities for Autodesk," said Andrew
Anagnost, Autodesk president and CEO. "We started seeing the
shift towards connected digital workflows in the cloud in product
design and manufacturing, then in architecture, followed by
building engineering, and more recently construction. And we are
now seeing growing momentum with owners."
"Overall, the demand environment in Q4 remained consistent with
Q3 with the approaching transition from up-front to annual billings
for multi-year contracts, and a large renewal cohort, providing a
tailwind to billings and free cash flow," said Debbie Clifford, Autodesk CFO. "We continue to
develop broader strategic partnerships with our customers, closing
our largest deal to date during the quarter. Our strong momentum
and competitive performance set us up well for fiscal 24."
Fourth Quarter Fiscal 2023 Additional Financial
Details
- Total billings increased 28 percent to $2.12 billion.
- Total revenue was $1.32 billion,
an increase of 9 percent as reported, and 12 percent on a constant
currency basis. Recurring revenue represents 98 percent of
total.
- Design revenue was $1.11 billion,
an increase of 9 percent as reported, and 12 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 $119 million, an
increase of 20 percent as reported, and 21 percent on a constant
currency basis. On a sequential basis, Make revenue increased 2
percent as reported and on a constant currency basis.
- Subscription plan revenue was $1.21
billion, an increase of 11 percent as reported, and 14
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 was within the range of 100 to 110
percent.
- GAAP operating income was $277
million, compared to $143
million in the fourth quarter last year. GAAP
operating margin was 21 percent, up 9 percentage points.
- Total non-GAAP operating income was $479
million, compared to $421
million in the fourth quarter last year. Non-GAAP operating
margin was 36 percent, up 1 percentage point.
- GAAP diluted net income per share was $1.35, compared to $0.40 in the fourth quarter last year.
- Non-GAAP diluted net income per share was $1.86, compared to $1.50 in the fourth quarter last year.
- Deferred revenue increased 21 percent to $4.58 billion. Unbilled deferred revenue
was $1.04 billion, an increase of
$94 million compared to the fourth
quarter of last year. Remaining performance obligations (RPO)
increased 19 percent to $5.62
billion. Current RPO increased 12 percent to $3.52 billion.
- Cash flow from operating activities was $911 million, an increase of $189 million compared to the fourth quarter last
year. Free cash flow was $903
million, an increase of $187
million compared to the fourth quarter last year.
Net Revenue by
Geographic Area
|
|
|
Three Months
Ended January 31,
2023
|
|
Three Months
Ended January 31,
2022
|
|
Change
compared to
prior
fiscal year
|
|
Constant
currency
change compared
to prior fiscal year
|
(In millions, except
percentages) (1)
|
|
|
$
|
|
%
|
|
%
|
Net Revenue:
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
U.S.
|
$
451
|
|
$
402
|
|
$ 49
|
|
12 %
|
|
*
|
Other
Americas
|
101
|
|
87
|
|
14
|
|
16 %
|
|
*
|
Total
Americas
|
552
|
|
489
|
|
63
|
|
13 %
|
|
13 %
|
EMEA
|
508
|
|
474
|
|
34
|
|
7 %
|
|
12 %
|
APAC
|
258
|
|
248
|
|
10
|
|
4 %
|
|
10 %
|
Total Net
Revenue
|
$
1,318
|
|
$
1,211
|
|
$
107
|
|
9 %
|
|
12 %
|
|
____________________
|
* 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
|
|
Change compared to
prior
fiscal year
|
(In millions, except
percentages) (1)
|
January 31,
2023
|
|
January 31,
2022
|
$
|
|
%
|
AEC (2)
|
$
602
|
|
$
540
|
|
$
62
|
|
11 %
|
AutoCAD and AutoCAD LT
(2)
|
362
|
|
332
|
|
30
|
|
9 %
|
MFG
|
257
|
|
246
|
|
11
|
|
4 %
|
M&E
|
74
|
|
82
|
|
(8)
|
|
(10) %
|
Other
|
23
|
|
11
|
|
12
|
|
109 %
|
Total Net
Revenue
|
$
1,318
|
|
$
1,211
|
|
$ 107
|
|
9 %
|
|
____________________
|
(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. The prior year period has been adjusted to conform to the
current period presentation.
|
Fiscal 2023 Financial Highlights
- Total billings increased 20 percent to $5.80 billion.
- Total revenue was $5.01 billion,
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 $4.26 billion,
an increase of 13 percent as reported, and 14 percent on a constant
currency basis.
- Make revenue was $452 million, an
increase of 24 percent as reported, and 25 percent on a constant
currency basis.
- Subscription plan revenue was $4.65
billion, an increase of 15 percent as reported and on a
constant currency basis.
- Total subscriptions increased approximately 702 thousand from
fiscal 2022 to 6.74 million at the end of fiscal 2023. Total
subscriptions adjusted for the multi-user trade-in increased
approximately 603 thousand from fiscal 2022 to 6.25
million.
- Subscription plan subscriptions increased 724 thousand from the
end of fiscal 2022 to 6.74 million at the end of fiscal 2023.
- GAAP operating income was $989
million, compared to $618
million last year. GAAP operating margin was 20 percent, up
6 percentage points.
- Total non-GAAP operating income was $1.79 billion compared to $1.40 billion last year. Non-GAAP operating
margin was 36 percent, up 4 percentage points.
- GAAP diluted net income per share was $3.78, compared to $2.24 last year.
- Non-GAAP diluted net income per share was $6.63, compared to $5.07 last year.
- Cash flow from operating activities increased to $2.07 billion, compared to $1.53 billion in fiscal 2022. Free cash flow
increased to $2.03 billion, compared
to $1.48 billion in fiscal 2022.
Net Revenue by
Geographic Area
|
|
|
Fiscal Year
Ended
January 31, 2023
|
|
Fiscal Year
Ended January
31, 2022
|
|
Change
compared to
prior
fiscal year
|
|
Constant
currency change
compared to
prior fiscal year
|
(In millions, except
percentages) (1)
|
|
|
$
|
|
%
|
|
%
|
Net Revenue:
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
U.S.
|
$
1,720
|
|
$
1,457
|
|
$
263
|
|
18 %
|
|
*
|
Other
Americas
|
372
|
|
308
|
|
64
|
|
21 %
|
|
*
|
Total
Americas
|
2,092
|
|
1,765
|
|
327
|
|
19 %
|
|
18 %
|
EMEA
|
1,906
|
|
1,700
|
|
206
|
|
12 %
|
|
13 %
|
APAC
|
1,007
|
|
921
|
|
86
|
|
9 %
|
|
13 %
|
Total Net
Revenue
|
$
5,005
|
|
$
4,386
|
|
$
619
|
|
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: AEC, AutoCAD and AutoCAD LT, MFG,
and M&E.
|
|
|
Fiscal Year
Ended
|
|
Change compared to
prior
fiscal year
|
(In millions, except
percentages) (1)
|
January 31,
2023
|
|
January 31,
2022
|
$
|
|
%
|
AEC (2)
|
$
2,278
|
|
$
1,969
|
|
$
309
|
|
16 %
|
AutoCAD and AutoCAD LT
(2)
|
1,387
|
|
1,244
|
|
143
|
|
11 %
|
MFG
|
978
|
|
876
|
|
102
|
|
12 %
|
M&E
|
291
|
|
259
|
|
32
|
|
12 %
|
Other
|
71
|
|
38
|
|
33
|
|
87 %
|
Total Net
Revenue
|
$
5,005
|
|
$
4,386
|
|
$
619
|
|
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. The fiscal year ended January 31, 2022 has been adjusted
to conform to the current period presentation. These
reclassifications did not impact total net
revenue.
|
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 first quarter and full-year
fiscal 2024 takes into consideration 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 later in this document.
First Quarter Fiscal
2024
|
|
Q1 FY24 Guidance
Metrics
|
Q1 FY24
(ending April 30, 2023)
|
Revenue (in
millions)
|
$1,260 -
$1,275
|
EPS
GAAP
|
$0.74 -
$0.80
|
EPS non-GAAP
(1)
|
$1.50- $1.56
|
|
________________
|
(1) Non-GAAP earnings
per diluted share excludes $0.75 related to stock-based
compensation expense, $0.09 for the amortization of purchased
intangibles, $0.01 for acquisition-related costs, partially offset
by ($0.09) related to GAAP-only tax charges.
|
Full-Year Fiscal
2024
|
|
FY24 Guidance
Metrics
|
FY24
(ending January 31, 2024)
|
Billings (in
millions) (1)
|
$5,025 -
$5,175
Down 13% - 11%
|
Revenue (in
millions) (2)
|
$5,355 -
$5,455
Up 7% - 9%
|
GAAP operating
margin
|
Approx. flat year over
year
|
Non-GAAP operating
margin (3)
|
Approx. flat year over
year
|
EPS
GAAP
|
$3.63 -
$3.97
|
EPS non-GAAP
(4)
|
$6.98 -
$7.32
|
Free cash flow (in
millions) (5)
|
$1,150 -
$1,250
|
|
________________
|
(1) Excluding the
approximate 2 ppt impact of foreign currency exchange rates and
hedge gains/losses, billings guidance would be down 11% to
9%.
|
(2) Excluding the
approximate 4 ppt impact of foreign currency exchange rates and
hedge gains/losses, revenue guidance would be up 11% to
13%.
|
(3) Non-GAAP operating
margin excludes approximately 13% related to stock-based
compensation expense, approximately 2% for the amortization of
purchased intangibles and less than 1% related to
acquisition-related costs.
|
(4) Non-GAAP earnings
per diluted share excludes $3.31 related to stock-based
compensation expense, $0.37 for the amortization of purchased
intangibles, and $0.02 related to acquisition-related costs,
partially offset by ($0.35) related to GAAP-only tax
charges.
|
(5) Free cash flow is
cash flow from operating activities less approximately $35 million
of capital expenditures.
|
The first quarter and full-year fiscal 2024 outlook assume a
projected annual effective tax rate of 24 percent for GAAP and 18
percent for 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. As such, 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 fourth 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, net revenue retention rate ("NR3") and subscriptions.
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.
Total Subscriptions: Consists of subscriptions from our
maintenance plans and subscription plan offerings that are active
and paid as of the fiscal year end date. For certain cloud service
offerings and EBAs, subscriptions represent the monthly average
activity reported within the last three months of the fiscal
quarter end date. Total subscriptions do not include education
offerings, consumer product offerings, select Creative Finishing
product offerings, Autodesk Buzzsaw, Autodesk Constructware, and
third-party products. Subscriptions acquired with the acquisition
of a business are captured once the data conforms to our
subscription count methodology and when added, may cause
variability in comparison of this calculation.
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 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; 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; our ability to maintain security levels and service
performance meeting the expectations of our customers, and the
resources and costs required to avoid unanticipated downtime and
prevent, detect and remediate performance degradation and security
breaches; 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.
© 2023 Autodesk, Inc. All rights reserved.
Autodesk,
Inc.
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations
|
|
|
|
|
(In millions, except
per share data) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
January 31,
|
|
Fiscal Year Ended
January 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(Unaudited)
|
Net revenue
(2):
|
|
|
|
|
|
|
|
Subscription
|
$
1,214
|
|
$
1,093
|
|
$
4,651
|
|
$
4,060
|
Maintenance
|
14
|
|
22
|
|
65
|
|
76
|
Total subscription and maintenance revenue
|
1,228
|
|
1,115
|
|
4,716
|
|
4,136
|
Other
|
90
|
|
96
|
|
289
|
|
250
|
Total net
revenue
|
1,318
|
|
1,211
|
|
5,005
|
|
4,386
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Cost of subscription
and maintenance revenue
|
90
|
|
80
|
|
343
|
|
299
|
Cost of other
revenue
|
20
|
|
19
|
|
79
|
|
67
|
Amortization of
developed technologies
|
14
|
|
13
|
|
58
|
|
52
|
Total cost of
revenue
|
124
|
|
112
|
|
480
|
|
418
|
Gross profit
|
1,194
|
|
1,099
|
|
4,525
|
|
3,968
|
Operating
expenses:
|
|
|
|
|
|
|
|
Marketing and
sales
|
439
|
|
428
|
|
1,745
|
|
1,623
|
Research and
development
|
313
|
|
290
|
|
1,219
|
|
1,115
|
General and
administrative
|
155
|
|
228
|
|
532
|
|
572
|
Amortization of
purchased intangibles
|
10
|
|
10
|
|
40
|
|
40
|
Total operating
expenses
|
917
|
|
956
|
|
3,536
|
|
3,350
|
Income from
operations
|
277
|
|
143
|
|
989
|
|
618
|
Interest and other
expense, net
|
—
|
|
(36)
|
|
(43)
|
|
(53)
|
Income before income
taxes
|
277
|
|
107
|
|
946
|
|
565
|
Benefit (provision) for
income taxes
|
16
|
|
(18)
|
|
(123)
|
|
(68)
|
Net income
|
$
293
|
|
$
89
|
|
$
823
|
|
$
497
|
Basic net income per
share
|
$
1.36
|
|
$
0.41
|
|
$
3.81
|
|
$
2.26
|
Diluted net income per
share
|
$
1.35
|
|
$
0.40
|
|
$
3.78
|
|
$
2.24
|
Weighted average shares
used in computing basic net income per share
|
216
|
|
219
|
|
216
|
|
220
|
Weighted average shares
used in computing diluted net income per share
|
217
|
|
221
|
|
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)
|
|
|
|
|
|
|
|
|
January 31,
2023
|
|
January 31,
2022
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
1,947
|
|
$
1,528
|
Marketable
securities
|
125
|
|
236
|
Accounts receivable,
net
|
961
|
|
716
|
Prepaid expenses and
other current assets
|
308
|
|
284
|
Total current
assets
|
3,341
|
|
2,764
|
Long-term marketable
securities
|
102
|
|
45
|
Computer equipment,
software, furniture and leasehold improvements, net
|
144
|
|
162
|
Operating lease
right-of-use assets
|
245
|
|
305
|
Intangible assets,
net
|
407
|
|
494
|
Goodwill
|
3,625
|
|
3,604
|
Deferred income taxes,
net
|
1,014
|
|
741
|
Long-term other
assets
|
560
|
|
492
|
Total assets
|
$
9,438
|
|
$
8,607
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
102
|
|
$
121
|
Accrued
compensation
|
358
|
|
341
|
Accrued income
taxes
|
33
|
|
30
|
Deferred
revenue
|
3,203
|
|
2,863
|
Operating lease
liabilities
|
85
|
|
87
|
Current portion of
long-term notes payable, net
|
—
|
|
350
|
Other accrued
liabilities
|
219
|
|
217
|
Total current
liabilities
|
4,000
|
|
4,009
|
Long-term deferred
revenue
|
1,377
|
|
927
|
Long-term operating
lease liabilities
|
300
|
|
346
|
Long-term income taxes
payable
|
164
|
|
20
|
Long-term deferred
income taxes
|
32
|
|
29
|
Long-term notes
payable, net
|
2,281
|
|
2,278
|
Long-term other
liabilities
|
139
|
|
149
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
3,325
|
|
2,923
|
Accumulated other
comprehensive loss
|
(185)
|
|
(124)
|
Accumulated
deficit
|
(1,995)
|
|
(1,950)
|
Total stockholders'
equity
|
1,145
|
|
849
|
Total liabilities and
stockholders' equity
|
$
9,438
|
|
$
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)
|
|
|
|
|
|
|
|
|
Fiscal Year Ended
January 31,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
Operating
activities:
|
|
|
|
Net income
|
$
823
|
|
$
497
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation,
amortization and accretion
|
150
|
|
148
|
Stock-based
compensation expense
|
657
|
|
555
|
Deferred income
taxes
|
(277)
|
|
(8)
|
Lease-related asset
impairments
|
34
|
|
104
|
Other operating
activities
|
(8)
|
|
18
|
Changes in operating
assets and liabilities, net of business combinations:
|
|
|
|
Accounts
receivable
|
(247)
|
|
(66)
|
Prepaid expenses and
other assets
|
(3)
|
|
(134)
|
Accounts payable and
other liabilities
|
(5)
|
|
10
|
Deferred
revenue
|
798
|
|
419
|
Accrued income
taxes
|
149
|
|
(12)
|
Net cash provided by
operating activities
|
2,071
|
|
1,531
|
Investing
activities:
|
|
|
|
Purchases of
marketable securities
|
(397)
|
|
(311)
|
Sales of marketable
securities
|
152
|
|
12
|
Maturities of
marketable securities
|
298
|
|
26
|
Purchases of
intangible assets (2)
|
(6)
|
|
(11)
|
Business combinations,
net of cash acquired
|
(96)
|
|
(1,250)
|
Capital
expenditures
|
(40)
|
|
(56)
|
Other investing
activities
|
(54)
|
|
(5)
|
Net cash used in
investing activities
|
(143)
|
|
(1,595)
|
Financing
activities:
|
|
|
|
Proceeds from issuance
of common stock, net of issuance costs
|
124
|
|
114
|
Taxes paid related to
net share settlement of equity awards
|
(160)
|
|
(194)
|
Repurchase and
retirement of common stock
|
(1,101)
|
|
(1,079)
|
Proceeds from debt,
net of discount
|
—
|
|
997
|
Repayment of
debt
|
(350)
|
|
—
|
Other financing
activities
|
—
|
|
(7)
|
Net cash used in
financing activities
|
(1,487)
|
|
(169)
|
Effect of exchange rate
changes on cash and cash equivalents
|
(22)
|
|
(11)
|
Net increase (decrease)
in cash and cash equivalents
|
419
|
|
(244)
|
Cash and cash
equivalents at beginning of the period
|
1,528
|
|
1,772
|
Cash and cash
equivalents at end of the period
|
$
1,947
|
|
$
1,528
|
|
____________________
|
(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) The line
description was changed from "Purchases of developed technologies"
to "Purchases of intangible assets".
|
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
January
31,
|
|
Fiscal Year Ended
January
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
21 %
|
|
12 %
|
|
20 %
|
|
14 %
|
Stock-based
compensation expense
|
12 %
|
|
12 %
|
|
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 %
|
|
9 %
|
|
1 %
|
|
2 %
|
Non-GAAP operating
margin (1)
|
36 %
|
|
35 %
|
|
36 %
|
|
32 %
|
|
|
|
|
|
|
|
|
GAAP income from
operations
|
$
277
|
|
$
143
|
|
$
989
|
|
$
618
|
Stock-based
compensation expense
|
164
|
|
146
|
|
660
|
|
559
|
Amortization of
developed technologies
|
12
|
|
12
|
|
53
|
|
50
|
Amortization of
purchased intangibles
|
10
|
|
10
|
|
40
|
|
40
|
Acquisition-related
costs
|
3
|
|
6
|
|
10
|
|
26
|
Lease-related asset
impairments and other charges
|
13
|
|
104
|
|
33
|
|
104
|
Non-GAAP income from
operations
|
$
479
|
|
$
421
|
|
$
1,785
|
|
$
1,397
|
|
|
|
|
|
|
|
|
GAAP diluted net income
per share
|
$
1.35
|
|
$
0.40
|
|
$
3.78
|
|
$
2.24
|
Stock-based
compensation expense
|
0.76
|
|
0.66
|
|
3.03
|
|
2.52
|
Amortization of
developed technologies
|
0.05
|
|
0.05
|
|
0.24
|
|
0.22
|
Amortization of
purchased intangibles
|
0.04
|
|
0.05
|
|
0.18
|
|
0.18
|
Acquisition-related
costs
|
0.02
|
|
0.03
|
|
0.05
|
|
0.11
|
Lease-related asset
impairments and other charges
|
0.06
|
|
0.47
|
|
0.15
|
|
0.47
|
Loss (gain) on
strategic investments and dispositions, net
|
0.04
|
|
0.05
|
|
—
|
|
(0.01)
|
Discrete GAAP tax
items
|
0.15
|
|
(0.05)
|
|
0.13
|
|
(0.32)
|
Release of valuation
allowance on deferred tax assets
|
(0.18)
|
|
—
|
|
(0.18)
|
|
—
|
Income tax effect of
non-GAAP adjustments
|
(0.43)
|
|
(0.16)
|
|
(0.75)
|
|
(0.34)
|
Non-GAAP diluted net
income per share
|
$
1.86
|
|
$
1.50
|
|
$
6.63
|
|
$
5.07
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
911
|
|
$
722
|
|
$
2,071
|
|
$
1,531
|
Capital
expenditures
|
(8)
|
|
(6)
|
|
(40)
|
|
(56)
|
Free cash
flow
|
$
903
|
|
$
716
|
|
$
2,031
|
|
$
1,475
|
|
____________________
|
(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.