- Second quarter revenue grew 9 percent, and 12 percent at
constant exchange rates, to $1.3
billion.
- Current remaining performance obligations were $3.5 billion, up 12 percent year over
year.
SAN
FRANCISCO, Aug. 23, 2023 /PRNewswire/ -- Autodesk,
Inc. (NASDAQ: ADSK) today reported financial results for the second
quarter of fiscal 2024.
All growth rates are compared to the second quarter of fiscal
2023, 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 2024 Financial
Highlights
- Total revenue increased 9 percent to $1,345 million;
- GAAP operating margin was 19 percent, down 1 percentage
point;
- Non-GAAP operating margin was flat at 36 percent;
- GAAP diluted EPS was $1.03;
Non-GAAP diluted EPS was $1.91;
- Cash flow from operating activities was $135 million; free cash flow was $128 million.
"Augmented design, powered by Autodesk, will enable our
customers to go further and faster to design and make a better
world for all," said Andrew
Anagnost, Autodesk president and CEO. "We've been laying the
foundation to build enterprise-level AI for years. We are building
the future with focus, purpose, and optimism."
"Our sustained momentum in the second quarter, and early
expansion of some enterprise business agreements expected to renew
later in the year, reduce the likelihood of our more cautious
forecast scenarios," said Debbie
Clifford, CFO of Autodesk. "Given that, we are raising the
lower end of our guidance ranges."
Additional Financial Details
- Total billings decreased 8 percent to $1,095 million.
- Total revenue was $1,345 million,
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 $1,154
million, an increase of 8 percent as reported, and 12
percent on a constant currency basis. On a sequential basis, Design
revenue increased 6 percent as reported, and 7 percent on a
constant currency basis.
- Make revenue was $130 million, an
increase of 15 percent as reported, and 17 percent on a constant
currency basis. On a sequential basis, Make revenue increased 7
percent as reported, and 8 percent on a constant currency
basis.
- Subscription plan revenue was $1,270
million, an increase of 9 percent as reported, and 13
percent on a constant currency basis. On a sequential basis,
subscription plan revenue increased 6 percent as reported, and 7
percent on a constant currency basis.
- Net revenue retention rate remained within the range of 100 to
110 percent, on a constant currency basis.
- GAAP operating income was $262
million, compared to $242
million in the second quarter last year. GAAP operating
margin was 19 percent, down 1 percentage point compared to the
second quarter last year.
- Total non-GAAP operating income was $489
million, compared to $444
million in the second quarter last year. Non-GAAP operating
margin was 36 percent, flat compared to the second quarter last
year.
- GAAP diluted net income per share was $1.03, compared to $0.85 in the second quarter last year.
- Non-GAAP diluted net income per share was $1.91, compared to $1.65 in the second quarter last year.
- Deferred revenue increased 14 percent to $4.23 billion. Unbilled deferred revenue was
$991 million, an increase of
$7 million compared to the second
quarter of last year. Remaining performance obligations ("RPO")
increased 11 percent to $5.22
billion. Current RPO increased 12 percent to $3.51 billion.
- Cash flow from operating activities was $135 million, a decrease of $122 million compared to the second quarter last
year. Free cash flow was $128
million, a decrease of $118
million compared to the second quarter last year.
Second Quarter Fiscal 2024 Business
Highlights
Net Revenue by Geographic Area
|
Three Months
Ended July 31,
2023
|
|
Three Months
Ended July 31,
2022
|
|
Change
compared to prior
fiscal year
|
|
Constant
currency
change compared
to prior fiscal year
|
(In millions, except
percentages)
|
|
|
$
|
|
%
|
|
%
|
Net Revenue:
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
U.S.
|
$
485
|
|
$
424
|
|
$ 61
|
|
14 %
|
|
*
|
Other
Americas
|
104
|
|
91
|
|
13
|
|
14 %
|
|
*
|
Total
Americas
|
589
|
|
515
|
|
74
|
|
14 %
|
|
15 %
|
EMEA
|
506
|
|
473
|
|
33
|
|
7 %
|
|
11 %
|
APAC
|
250
|
|
249
|
|
1
|
|
— %
|
|
6 %
|
Total Net
Revenue
|
$
1,345
|
|
$
1,237
|
|
$
108
|
|
9 %
|
|
12 %
|
____________________
|
* Constant
currency data not provided at this level.
|
Net Revenue by Product Family
Our product offerings are focused in four primary product
families: Architecture, Engineering and Construction ("AEC"),
AutoCAD and AutoCAD LT, Manufacturing ("MFG"), and Media and
Entertainment ("M&E").
|
Three Months
Ended July 31,
2023
|
|
Three Months
Ended July 31,
2022
|
|
Change compared
to prior fiscal
year
|
(In millions, except
percentages)
|
|
$
|
|
%
|
AEC
|
$
627
|
|
$
564
|
|
$
63
|
|
11 %
|
AutoCAD and AutoCAD
LT
|
364
|
|
344
|
|
20
|
|
6 %
|
MFG
|
256
|
|
242
|
|
14
|
|
6 %
|
M&E
|
74
|
|
71
|
|
3
|
|
4 %
|
Other
|
24
|
|
16
|
|
8
|
|
50 %
|
Total Net
Revenue
|
$
1,345
|
|
$
1,237
|
|
$ 108
|
|
9 %
|
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 2024 considers the current economic
environment and foreign exchange currency rate environment. A
reconciliation between the fiscal 2024 GAAP and non-GAAP estimates
is provided below or in the tables following this press
release.
Third Quarter Fiscal 2024
Q3 FY24 Guidance
Metrics
|
Q3 FY24
(ending October 31, 2023)
|
Revenue (in
millions)
|
$1,380 -
$1,395
|
EPS
GAAP
|
$1.02 -
$1.08
|
EPS non-GAAP
(1)
|
$1.97 -
$2.03
|
____________________
|
(1) Non-GAAP earnings
per diluted share excludes $0.85 related to stock-based
compensation expense, $0.10 for the amortization of both purchased
intangibles and developed technologies, and $0.01 for
acquisition-related costs, partially offset by ($0.01) related to
GAAP-only tax charges.
|
Full Year Fiscal 2024
FY24 Guidance
Metrics
|
FY24
(ending January 31, 2024)
|
Billings (in
millions) (1)
|
$5,075 -
$5,175
Down 12% - 11%
|
Revenue (in
millions) (2)
|
$5,405 -
$5,455
Up 8% - 9%
|
GAAP operating
margin
|
Approx. flat year over
year
|
Non-GAAP operating
margin (3)
|
Approx. flat year over
year
|
EPS
GAAP
|
$3.75 -
$3.94
|
EPS non-GAAP
(4)
|
$7.30 -
$7.49
|
Free cash flow (in
millions) (5)
|
$1,170 -
$1,250
|
____________________
|
(1) Excluding the
impact of foreign currency exchange rates and hedge gains/losses,
billings guidance would be down approx. 11% - 9%.
|
(2) Excluding the
impact of foreign currency exchange rates and hedge gains/losses,
revenue guidance would be up approx. 11% - 12%+ (impacted by
rounding).
|
(3) Non-GAAP operating
margin excludes approximately 13% related to stock-based
compensation expense, approximately 2% for the amortization of both
purchased intangibles and developed technologies, less than 1%
related to acquisition-related costs and less than 1% related to
lease-related asset impairments.
|
(4) Non-GAAP earnings
per diluted share excludes $3.34 related to stock-based
compensation expense, $0.39 for the amortization of both purchased
intangibles and developed technologies, $0.07 related to losses on
strategic investments and dispositions, net, $0.04 related to
acquisition-related costs, and $0.03 for lease-related asset
impairments, partially offset by ($0.32) related to GAAP-only tax
charges.
|
(5) Free cash flow is
cash flow from operating activities less approximately $30 million
of capital expenditures.
|
The third quarter and full-year fiscal 2024 outlook assume a
projected annual effective tax rate of 25 percent and 18 percent
for GAAP and non-GAAP results, respectively. Shifts in geographic
profitability continue to impact the annual effective tax rate due
to significant differences in tax rates in various jurisdictions.
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, 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. 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.
Flex: A pay-as-you-go consumption option to
pre-purchase tokens to access any product available with Flex for a
daily rate.
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
(both new and existing customers), 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; our transition from up front
to annual billings for multi-year contracts; 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 new or existing 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. #MakeAnything
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
July 31,
|
|
Six Months Ended
July 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
Net revenue:
|
|
|
|
|
|
|
|
Subscription
|
$
1,270
|
|
$
1,160
|
|
$
2,463
|
|
$
2,249
|
Maintenance
|
14
|
|
17
|
|
28
|
|
35
|
Total subscription and maintenance revenue
|
1,284
|
|
1,177
|
|
2,491
|
|
2,284
|
Other
|
61
|
|
60
|
|
123
|
|
123
|
Total net
revenue
|
1,345
|
|
1,237
|
|
2,614
|
|
2,407
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Cost of subscription
and maintenance revenue
|
95
|
|
83
|
|
191
|
|
167
|
Cost of other
revenue
|
21
|
|
21
|
|
41
|
|
40
|
Amortization of
developed technologies
|
11
|
|
15
|
|
22
|
|
29
|
Total cost of
revenue
|
127
|
|
119
|
|
254
|
|
236
|
Gross profit
|
1,218
|
|
1,118
|
|
2,360
|
|
2,171
|
Operating
expenses:
|
|
|
|
|
|
|
|
Marketing and
sales
|
449
|
|
433
|
|
905
|
|
852
|
Research and
development
|
355
|
|
306
|
|
682
|
|
595
|
General and
administrative
|
141
|
|
128
|
|
273
|
|
248
|
Amortization of
purchased intangibles
|
11
|
|
9
|
|
21
|
|
20
|
Total operating
expenses
|
956
|
|
876
|
|
1,881
|
|
1,715
|
Income from
operations
|
262
|
|
242
|
|
479
|
|
456
|
Interest and other
(expense) income, net
|
(4)
|
|
(10)
|
|
—
|
|
(29)
|
Income before income
taxes
|
258
|
|
232
|
|
479
|
|
427
|
Provision for income
taxes
|
(36)
|
|
(46)
|
|
(96)
|
|
(95)
|
Net income
|
$
222
|
|
$
186
|
|
$
383
|
|
$
332
|
Basic net income per
share
|
$
1.04
|
|
$
0.86
|
|
$
1.79
|
|
$
1.53
|
Diluted net income per
share
|
$
1.03
|
|
$
0.85
|
|
$
1.77
|
|
$
1.52
|
Weighted average shares
used in computing basic net income per
share
|
214
|
|
217
|
|
214
|
|
217
|
Weighted average shares
used in computing diluted net income per
share
|
215
|
|
218
|
|
216
|
|
218
|
Autodesk,
Inc.
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
July 31,
2023
|
|
January 31,
2023
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
1,714
|
|
$
1,947
|
Marketable
securities
|
359
|
|
125
|
Accounts receivable,
net
|
402
|
|
961
|
Prepaid expenses and
other current assets
|
346
|
|
308
|
Total current
assets
|
2,821
|
|
3,341
|
Long-term marketable
securities
|
219
|
|
102
|
Computer equipment,
software, furniture and leasehold improvements, net
|
136
|
|
144
|
Operating lease
right-of-use assets
|
248
|
|
245
|
Intangible assets,
net
|
410
|
|
407
|
Goodwill
|
3,637
|
|
3,625
|
Deferred income taxes,
net
|
1,078
|
|
1,014
|
Long-term other
assets
|
558
|
|
560
|
Total assets
|
$
9,107
|
|
$
9,438
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
124
|
|
$
102
|
Accrued
compensation
|
279
|
|
358
|
Accrued income
taxes
|
116
|
|
33
|
Deferred
revenue
|
3,131
|
|
3,203
|
Operating lease
liabilities
|
72
|
|
85
|
Other accrued
liabilities
|
153
|
|
219
|
Total current
liabilities
|
3,875
|
|
4,000
|
Long-term deferred
revenue
|
1,102
|
|
1,377
|
Long-term operating
lease liabilities
|
311
|
|
300
|
Long-term income taxes
payable
|
147
|
|
164
|
Long-term deferred
income taxes
|
35
|
|
32
|
Long-term notes
payable, net
|
2,282
|
|
2,281
|
Long-term other
liabilities
|
149
|
|
139
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
3,531
|
|
3,325
|
Accumulated other
comprehensive loss
|
(198)
|
|
(185)
|
Accumulated
deficit
|
(2,127)
|
|
(1,995)
|
Total stockholders'
equity
|
1,206
|
|
1,145
|
Total liabilities and
stockholders' equity
|
$
9,107
|
|
$
9,438
|
Autodesk,
Inc.
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
Six Months Ended
July 31,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
Operating
activities:
|
|
|
|
Net income
|
$
383
|
|
$
332
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation,
amortization and accretion
|
66
|
|
76
|
Stock-based
compensation expense
|
362
|
|
322
|
Deferred income
taxes
|
(65)
|
|
(43)
|
Lease-related asset
impairments
|
7
|
|
9
|
Other
|
(33)
|
|
(11)
|
Changes in operating
assets and liabilities, net of business combinations:
|
|
|
|
Accounts
receivable
|
559
|
|
281
|
Prepaid expenses and
other assets
|
(23)
|
|
(25)
|
Accounts payable and
other liabilities
|
(115)
|
|
(199)
|
Deferred
revenue
|
(350)
|
|
(77)
|
Accrued income
taxes
|
67
|
|
26
|
Net cash provided by
operating activities
|
858
|
|
691
|
Investing
activities:
|
|
|
|
Purchases of
marketable securities
|
(687)
|
|
(97)
|
Sales and maturities
of marketable securities
|
339
|
|
245
|
Capital
expenditures
|
(16)
|
|
(23)
|
Purchases of
intangible assets
|
(10)
|
|
(5)
|
Business combinations,
net of cash acquired
|
(26)
|
|
(96)
|
Other investing
activities
|
(18)
|
|
(47)
|
Net cash used in
investing activities
|
(418)
|
|
(23)
|
Financing
activities:
|
|
|
|
Proceeds from issuance
of common stock, net of issuance costs
|
71
|
|
67
|
Taxes paid related to
net share settlement of equity awards
|
(120)
|
|
(92)
|
Repurchases of common
stock
|
(616)
|
|
(708)
|
Net cash used in
financing activities
|
(665)
|
|
(733)
|
Effect of exchange rate
changes on cash and cash equivalents
|
(8)
|
|
(23)
|
Net decrease in cash
and cash equivalents
|
(233)
|
|
(88)
|
Cash and cash
equivalents at beginning of period
|
1,947
|
|
1,528
|
Cash and cash
equivalents at end of period
|
$
1,714
|
|
$
1,440
|
|
|
|
|
Supplemental cash flow
disclosure:
|
|
|
|
Non-cash financing
activities:
|
|
|
|
Fair value of common
stock issued to settle liability-classified restricted common
stock
|
$
9
|
|
$
5
|
Fair value of common
stock issued related to business combinations
|
$
—
|
|
$
10
|
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 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
July 31,
|
|
Six Months Ended
July 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
GAAP operating
margin
|
19 %
|
|
20 %
|
|
18 %
|
|
19 %
|
Stock-based
compensation expense
|
15 %
|
|
14 %
|
|
14 %
|
|
13 %
|
Amortization of
developed technologies
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
Amortization of
purchased intangibles
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
Lease-related asset
impairments and other charges
|
1 %
|
|
1 %
|
|
— %
|
|
— %
|
Non-GAAP operating
margin (1)
|
36 %
|
|
36 %
|
|
34 %
|
|
35 %
|
|
|
|
|
|
|
|
|
GAAP income from
operations
|
$
262
|
|
$
242
|
|
$
479
|
|
$
456
|
Stock-based
compensation expense
|
197
|
|
169
|
|
362
|
|
324
|
Amortization of
developed technologies
|
11
|
|
14
|
|
20
|
|
27
|
Amortization of
purchased intangibles
|
10
|
|
9
|
|
20
|
|
20
|
Acquisition-related
costs
|
2
|
|
3
|
|
5
|
|
6
|
Lease-related asset
impairments and other charges
|
7
|
|
7
|
|
7
|
|
8
|
Non-GAAP income from
operations
|
$
489
|
|
$
444
|
|
$
893
|
|
$
841
|
|
|
|
|
|
|
|
|
GAAP diluted net income
per share
|
$
1.03
|
|
$
0.85
|
|
$
1.77
|
|
$
1.52
|
Stock-based
compensation expense
|
0.92
|
|
0.78
|
|
1.68
|
|
1.49
|
Amortization of
developed technologies
|
0.05
|
|
0.06
|
|
0.09
|
|
0.12
|
Amortization of
purchased intangibles
|
0.05
|
|
0.04
|
|
0.09
|
|
0.09
|
Acquisition-related
costs
|
0.01
|
|
0.01
|
|
0.02
|
|
0.03
|
Lease-related asset
impairments and other charges
|
0.03
|
|
0.04
|
|
0.03
|
|
0.04
|
Loss on strategic
investments and dispositions, net
|
0.07
|
|
—
|
|
0.07
|
|
—
|
Discrete GAAP tax
items
|
(0.09)
|
|
0.01
|
|
(0.12)
|
|
(0.03)
|
Income tax effect of
non-GAAP adjustments
|
(0.16)
|
|
(0.14)
|
|
(0.19)
|
|
(0.17)
|
Non-GAAP diluted net
income per share
|
$
1.91
|
|
$
1.65
|
|
$
3.44
|
|
$
3.09
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
135
|
|
$
257
|
|
$
858
|
|
$
691
|
Capital
expenditures
|
(7)
|
|
(11)
|
|
(16)
|
|
(23)
|
Free cash
flow
|
$
128
|
|
$
246
|
|
$
842
|
|
$
668
|
____________________
|
(1) Totals may
not sum due to rounding.
|
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SOURCE Autodesk, Inc.