- Third quarter revenue grew 10 percent, and 13 percent at
constant exchange rates, to $1.4
billion.
- Current remaining performance
obligations were $3.5 billion, up 12
percent year over year.
SAN
FRANCISCO, Nov. 21, 2023 /PRNewswire/ -- Autodesk,
Inc. (NASDAQ: ADSK) today reported financial results for the third
quarter of fiscal 2024.
All growth rates are compared to the third 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.
Third Quarter Fiscal 2024 Financial
Highlights
- Total revenue increased 10 percent to $1,414 million;
- GAAP operating margin was 24 percent, up 4 percentage
points;
- Non-GAAP operating margin was 39 percent, up 3 percentage
points;
- GAAP diluted EPS was $1.12;
Non-GAAP diluted EPS was $2.07;
- Cash flow from operating activities was $18 million; free cash flow was $13 million.
"Autodesk AI and Platform Services will enable Autodesk, our
customers, and partners to build more valuable, data driven, and
connected products and services in our industry clouds and on our
platform," said Andrew Anagnost,
Autodesk president and CEO. "Our customers remain committed to
transformation, and to Autodesk, evidenced by our largest-ever EBA
signed during the quarter, and record contributions from our
construction and water verticals to our overall EBA
performance."
"Overall market conditions and the underlying momentum of the
business remained similar to the last few quarters. Our financial
performance in the third quarter was strong with much of the
outperformance coming from larger-than-expected expansions of
existing EBAs," said Debbie
Clifford, CFO of Autodesk. "Given that, we are raising
revenue, earnings per share, and free cash flow guidance."
Additional Financial Details
- Total billings decreased 11 percent to $1,204 million.
- Total revenue was $1,414 million,
an increase of 10 percent as reported, and 13 percent on a constant
currency basis. Recurring revenue represents 98 percent of
total.
- Design revenue was $1,192
million, an increase of 10 percent as reported, and 12
percent on a constant currency basis. On a sequential basis, Design
revenue increased 3 percent as reported, and 4 percent on a
constant currency basis.
- Make revenue was $134 million, an
increase of 15 percent as reported, and 16 percent on a constant
currency basis. On a sequential basis, Make revenue increased 3
percent as reported and on a constant currency basis.
- Subscription plan revenue was $1,314
million, an increase of 11 percent as reported, and 13
percent on a constant currency basis. On a sequential basis,
subscription plan revenue increased 3 percent as reported, and 4
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 $334
million, compared to $256
million in the third quarter last year. GAAP operating
margin was 24 percent, up 4 percentage points compared to the third
quarter last year.
- Total non-GAAP operating income was $547
million, compared to $465
million in the third quarter last year. Non-GAAP operating
margin was 39 percent, up 3 percentage points compared to the third
quarter last year.
- GAAP diluted net income per share was $1.12, compared to $0.91 in the third quarter last year.
- Non-GAAP diluted net income per share was $2.07, compared to $1.70 in the third quarter last year.
- Deferred revenue increased 6 percent to $4.02 billion. Unbilled deferred revenue was
$1.22 billion, an increase of
$322 million compared to the third
quarter last year. Remaining performance obligations ("RPO")
increased 12 percent to $5.24
billion. Current RPO increased 12 percent to $3.52 billion.
- Cash flow from operating activities was $18 million, a decrease of $451 million compared to the third quarter last
year. Free cash flow was $13 million,
a decrease of $447 million compared
to the third quarter last year.
Third Quarter Fiscal 2024 Business
Highlights
Net Revenue by Geographic Area
|
Three Months
Ended October 31,
2023
|
|
Three Months
Ended October 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.
|
$
520
|
|
$
447
|
|
$ 73
|
|
16 %
|
|
*
|
Other Americas
|
120
|
|
94
|
|
26
|
|
28 %
|
|
*
|
Total Americas
|
640
|
|
541
|
|
99
|
|
18 %
|
|
19 %
|
EMEA
|
516
|
|
476
|
|
40
|
|
8 %
|
|
11 %
|
APAC
|
258
|
|
263
|
|
(5)
|
|
(2) %
|
|
3 %
|
Total Net
Revenue
|
$
1,414
|
|
$
1,280
|
|
$
134
|
|
10 %
|
|
13 %
|
____________________
|
* 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 October 31,
2023
|
|
Three Months
Ended October 31,
2022
|
|
Change compared to
prior
fiscal year
|
(In millions, except
percentages)
|
|
$
|
|
%
|
AEC
|
$
675
|
|
$
575
|
|
$ 100
|
|
17 %
|
AutoCAD and AutoCAD
LT
|
372
|
|
354
|
|
18
|
|
5 %
|
MFG
|
269
|
|
254
|
|
15
|
|
6 %
|
M&E
|
73
|
|
78
|
|
(5)
|
|
(6) %
|
Other
|
25
|
|
19
|
|
6
|
|
32 %
|
Total Net
Revenue
|
$
1,414
|
|
$
1,280
|
|
$ 134
|
|
10 %
|
Business Outlook
The following are forward-looking statements based on current
expectations and assumptions, and involve risks and uncertainties,
some of which are set forth below under "Safe Harbor
Statement." Autodesk's business outlook for the fourth
quarter and full-year fiscal 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.
Fourth Quarter Fiscal 2024
Q4 FY24 Guidance
Metrics
|
Q4 FY24
(ending January 31, 2024)
|
Revenue (in
millions)
|
$1,422 -
$1,437
|
EPS
GAAP
|
$0.99 -
$1.05
|
EPS non-GAAP
(1)
|
$1.91 -
$1.97
|
____________________
|
(1) Non-GAAP earnings
per diluted share excludes $0.75 related to stock-based
compensation expense, $0.11 for the amortization of both purchased
intangibles and developed technologies, $0.06 for
acquisition-related costs.
|
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)
|
$5,450 -
$5,465
Up approx. 9%
|
GAAP operating
margin
|
Approx. flat year over
year
|
Non-GAAP operating
margin (3)
|
Approx. flat year over
year
|
EPS
GAAP
|
$3.88 -
$3.94
|
EPS non-GAAP
(4)
|
$7.43 -
$7.49
|
Free cash flow (in
millions) (5)
|
$1,200 -
$1,260
|
____________________
|
(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. 12%.
|
(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 and other charges.
|
(4) Non-GAAP earnings
per diluted share excludes $3.27 related to stock-based
compensation expense, $0.39 for the amortization of both purchased
intangibles and developed technologies, $0.12 related to losses on
strategic investments, $0.13 related to acquisition-related costs,
and $0.03 for lease-related asset impairments and other charges,
partially offset by ($0.39) related to GAAP-only tax
charges.
|
(5) Free cash flow is
cash flow from operating activities less approximately $30 million
of capital expenditures.
|
The fourth quarter and full-year fiscal 2024 outlook assume a
projected annual effective tax rate of 24 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 third quarter conference call today at
5 p.m. ET. The live broadcast can be
accessed at autodesk.com/investor. A transcript of the opening
commentary will also be available following the conference
call.
A replay of the broadcast will be available at 7 p.m. ET at autodesk.com/investor. This replay
will be maintained on Autodesk's website for at least 12
months.
Investor Presentation Details
An investor presentation, Excel financials and other
supplemental materials providing additional information can be
found at autodesk.com/investor.
Key Performance Metrics
To help better understand our financial performance, we use
several key performance metrics including billings, recurring
revenue and net revenue retention rate. 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 changes in monetary and fiscal policy,
foreign exchange headwinds, recessionary fears, supply chain
disruptions, resulting inflationary pressures and hiring
conditions; geopolitical tension and armed conflicts, extreme
weather events, and the COVID-19 pandemic; costs and challenges
associated with strategic acquisitions and investments; our ability
to successfully implement and expand our transaction model;
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 and the current conflict between
Israel and Hamas; 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, including our new transaction model for Flex; 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
The world's designers, engineers, builders, and creators trust
Autodesk to help them design and make anything. From the buildings
we live and work in, to the cars we drive and the bridges we drive
over. From the products we use and rely on, to the movies and games
that inspire us. Autodesk's Design and Make Platform unlocks the
power of data to accelerate insights and automate processes,
empowering our customers with the technology to create the world
around us and deliver better outcomes for their business and the
planet. 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
October
31,
|
|
Nine Months Ended
October 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
Net revenue:
|
|
|
|
|
|
|
|
Subscription
|
$
1,314
|
|
$
1,188
|
|
$
3,777
|
|
$
3,437
|
Maintenance
|
12
|
|
16
|
|
40
|
|
51
|
Total subscription and maintenance revenue
|
1,326
|
|
1,204
|
|
3,817
|
|
3,488
|
Other
|
88
|
|
76
|
|
211
|
|
199
|
Total net
revenue
|
1,414
|
|
1,280
|
|
4,028
|
|
3,687
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Cost of subscription
and maintenance revenue
|
94
|
|
86
|
|
285
|
|
253
|
Cost of other
revenue
|
21
|
|
19
|
|
62
|
|
59
|
Amortization of
developed technologies
|
12
|
|
15
|
|
34
|
|
44
|
Total cost of
revenue
|
127
|
|
120
|
|
381
|
|
356
|
Gross profit
|
1,287
|
|
1,160
|
|
3,647
|
|
3,331
|
Operating
expenses:
|
|
|
|
|
|
|
|
Marketing and
sales
|
439
|
|
454
|
|
1,344
|
|
1,306
|
Research and
development
|
339
|
|
311
|
|
1,021
|
|
906
|
General and
administrative
|
165
|
|
129
|
|
438
|
|
377
|
Amortization of
purchased intangibles
|
10
|
|
10
|
|
31
|
|
30
|
Total operating
expenses
|
953
|
|
904
|
|
2,834
|
|
2,619
|
Income from
operations
|
334
|
|
256
|
|
813
|
|
712
|
Interest and other
expense, net
|
(14)
|
|
(14)
|
|
(14)
|
|
(43)
|
Income before income
taxes
|
320
|
|
242
|
|
799
|
|
669
|
Provision for income
taxes
|
(79)
|
|
(44)
|
|
(175)
|
|
(139)
|
Net income
|
$
241
|
|
$
198
|
|
$
624
|
|
$
530
|
Basic net income per
share
|
$
1.13
|
|
$
0.92
|
|
$
2.92
|
|
$
2.44
|
Diluted net income per
share
|
$
1.12
|
|
$
0.91
|
|
$
2.89
|
|
$
2.43
|
Weighted average shares
used in computing basic net income per
share
|
214
|
|
216
|
|
214
|
|
217
|
Weighted average shares
used in computing diluted net income per
share
|
216
|
|
217
|
|
216
|
|
218
|
Autodesk,
Inc.
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
October 31,
2023
|
|
January 31,
2023
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
1,526
|
|
$
1,947
|
Marketable
securities
|
428
|
|
125
|
Accounts receivable,
net
|
579
|
|
961
|
Prepaid expenses and
other current assets
|
406
|
|
308
|
Total current
assets
|
2,939
|
|
3,341
|
Long-term marketable
securities
|
219
|
|
102
|
Computer equipment,
software, furniture and leasehold improvements, net
|
128
|
|
144
|
Operating lease
right-of-use assets
|
237
|
|
245
|
Intangible assets,
net
|
411
|
|
407
|
Goodwill
|
3,604
|
|
3,625
|
Deferred income taxes,
net
|
1,122
|
|
1,014
|
Long-term other
assets
|
566
|
|
560
|
Total assets
|
$
9,226
|
|
$
9,438
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
127
|
|
$
102
|
Accrued
compensation
|
378
|
|
358
|
Accrued income
taxes
|
64
|
|
33
|
Deferred
revenue
|
3,120
|
|
3,203
|
Operating lease
liabilities
|
71
|
|
85
|
Other accrued
liabilities
|
152
|
|
219
|
Total current
liabilities
|
3,912
|
|
4,000
|
Long-term deferred
revenue
|
903
|
|
1,377
|
Long-term operating
lease liabilities
|
294
|
|
300
|
Long-term income taxes
payable
|
161
|
|
164
|
Long-term deferred
income taxes
|
31
|
|
32
|
Long-term notes
payable, net
|
2,283
|
|
2,281
|
Long-term other
liabilities
|
160
|
|
139
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
3,678
|
|
3,325
|
Accumulated other
comprehensive loss
|
(257)
|
|
(185)
|
Accumulated
deficit
|
(1,939)
|
|
(1,995)
|
Total stockholders'
equity
|
1,482
|
|
1,145
|
Total liabilities and
stockholders' equity
|
$
9,226
|
|
$
9,438
|
Autodesk,
Inc.
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
Nine Months Ended
October 31,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
Operating
activities:
|
|
|
|
Net income
|
$
624
|
|
$
530
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation,
amortization and accretion
|
102
|
|
113
|
Stock-based
compensation expense
|
544
|
|
493
|
Deferred income
taxes
|
(116)
|
|
(98)
|
Lease-related asset
impairments
|
7
|
|
21
|
Other
|
(15)
|
|
13
|
Changes in operating
assets and liabilities, net of business combinations:
|
|
|
|
Accounts
receivable
|
380
|
|
70
|
Prepaid expenses and
other assets
|
(51)
|
|
1
|
Accounts payable and
other liabilities
|
(77)
|
|
(76)
|
Deferred
revenue
|
(551)
|
|
14
|
Accrued income
taxes
|
29
|
|
79
|
Net cash provided by
operating activities
|
876
|
|
1,160
|
Investing
activities:
|
|
|
|
Purchases of
marketable securities
|
(944)
|
|
(199)
|
Sales and maturities
of marketable securities
|
529
|
|
302
|
Capital
expenditures
|
(21)
|
|
(32)
|
Purchases of
intangible assets
|
(25)
|
|
(6)
|
Business combinations,
net of cash acquired
|
(44)
|
|
(96)
|
Other investing
activities
|
(19)
|
|
(53)
|
Net cash used in
investing activities
|
(524)
|
|
(84)
|
Financing
activities:
|
|
|
|
Proceeds from issuance
of common stock, net of issuance costs
|
130
|
|
124
|
Taxes paid related to
net share settlement of equity awards
|
(153)
|
|
(127)
|
Repurchases of common
stock
|
(730)
|
|
(894)
|
Net cash used in
financing activities
|
(753)
|
|
(897)
|
Effect of exchange rate
changes on cash and cash equivalents
|
(20)
|
|
(42)
|
Net decrease in cash
and cash equivalents
|
(421)
|
|
137
|
Cash and cash
equivalents at beginning of period
|
1,947
|
|
1,528
|
Cash and cash
equivalents at end of period
|
$
1,526
|
|
$
1,665
|
|
|
|
|
Supplemental cash flow
disclosure:
|
|
|
|
Non-cash financing
activities:
|
|
|
|
Fair value of common
stock issued to settle liability-classified restricted common
stock
|
$
9
|
|
$
8
|
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
October 31,
|
|
Nine Months Ended
October 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
GAAP operating
margin
|
24 %
|
|
20 %
|
|
20 %
|
|
19 %
|
Stock-based
compensation expense
|
13 %
|
|
13 %
|
|
13 %
|
|
13 %
|
Amortization of
developed technologies
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
Amortization of
purchased intangibles
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
Acquisition-related
costs
|
1 %
|
|
— %
|
|
— %
|
|
— %
|
Lease-related asset
impairments and other charges
|
— %
|
|
1 %
|
|
— %
|
|
1 %
|
Non-GAAP operating
margin (1)
|
39 %
|
|
36 %
|
|
36 %
|
|
35 %
|
|
|
|
|
|
|
|
|
GAAP income from
operations
|
$
334
|
|
$
256
|
|
$
813
|
|
$
712
|
Stock-based
compensation expense
|
181
|
|
172
|
|
543
|
|
496
|
Amortization of
developed technologies
|
11
|
|
14
|
|
31
|
|
41
|
Amortization of
purchased intangibles
|
10
|
|
10
|
|
30
|
|
30
|
Acquisition-related
costs
|
11
|
|
1
|
|
16
|
|
7
|
Lease-related asset
impairments and other charges
|
—
|
|
12
|
|
7
|
|
20
|
Non-GAAP income from
operations
|
$
547
|
|
$
465
|
|
$
1,440
|
|
$
1,306
|
|
|
|
|
|
|
|
|
GAAP diluted net income
per share
|
$
1.12
|
|
$
0.91
|
|
$
2.89
|
|
$
2.43
|
Stock-based
compensation expense
|
0.84
|
|
0.79
|
|
2.52
|
|
2.28
|
Amortization of
developed technologies
|
0.05
|
|
0.06
|
|
0.14
|
|
0.19
|
Amortization of
purchased intangibles
|
0.05
|
|
0.05
|
|
0.14
|
|
0.14
|
Acquisition-related
costs
|
0.05
|
|
—
|
|
0.07
|
|
0.03
|
Lease-related asset
impairments and other charges
|
—
|
|
0.06
|
|
0.03
|
|
0.09
|
Loss (gain) on
strategic investments and dispositions, net
|
0.05
|
|
(0.03)
|
|
0.12
|
|
(0.04)
|
Discrete GAAP tax
items
|
0.03
|
|
0.01
|
|
(0.08)
|
|
(0.02)
|
Income tax effect of
non-GAAP adjustments
|
(0.12)
|
|
(0.15)
|
|
(0.32)
|
|
(0.32)
|
Non-GAAP diluted net
income per share
|
$
2.07
|
|
$
1.70
|
|
$
5.51
|
|
$
4.78
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
18
|
|
$
469
|
|
$
876
|
|
$
1,160
|
Capital
expenditures
|
(5)
|
|
(9)
|
|
(21)
|
|
(32)
|
Free cash
flow
|
$
13
|
|
$
460
|
|
$
855
|
|
$
1,128
|
____________________
|
(1) Totals may
not sum due to rounding.
|
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SOURCE Autodesk, Inc.