Strong Growth in Billings and
Subscriptions
Record Cash Flow for Q4 and FY15
Autodesk, Inc. (NASDAQ:ADSK) today reported financial results
for the fourth quarter and full fiscal year ended January 31, 2015.
The strong increase in billings and subscriptions and record cash
flow from operating activities reflect continued progress on the
company’s ongoing business model transition.
Fourth Quarter Fiscal 2015
- Total billings increased 13 percent,
compared to the fourth quarter last year as reported, and 20
percent on a constant currency basis.
- Deferred revenue increased 28 percent
to a record $1.16 billion, compared to $901 million in the fourth
quarter last year.
- Total subscriptions, including
maintenance, desktop (rental), and cloud subscriptions, increased
by approximately 100,000 from the third quarter of fiscal 2015,
including approximately 17,000 subscriptions related to the recent
acquisition of Shotgun. This is the first quarter that Shotgun
subscriptions have been included in the subscription count.
- Revenue was $665 million, an increase
of 13 percent compared to the fourth quarter last year as reported,
and 15 percent on a constant currency basis. Revenue contribution
from the recent acquisition of Delcam was approximately $20
million.
- GAAP operating margin was 2 percent,
compared to 9 percent in the fourth quarter last year.
- Non-GAAP operating margin was 13
percent, compared to 20 percent in the fourth quarter last year. A
reconciliation of GAAP to non-GAAP results is provided in the
accompanying tables.
- GAAP diluted earnings per share were
$0.05, compared to $0.23 in the fourth quarter last year.
- Non-GAAP diluted earnings per share
were $0.25, compared to $0.40 in the fourth quarter last year.
- Cash flow from operating activities was
a record $257 million, compared to $184 million in the fourth
quarter last year.
"Our strong fourth quarter results capped off a terrific year
for Autodesk," said Carl Bass, Autodesk president and CEO.
"Strength in our core Architecture, Engineering and Construction
(AEC) and Manufacturing business segments led to over-performance
on nearly all metrics, including billings, revenue, deferred
revenue, subscription additions, and cash flow. Fiscal 2015 was the
first year of our business model transition to more cloud and
term-based subscription offerings and we are pleased with our early
progress. Our subscription offerings provide our customers with
greater flexibility and create a new and better experience. Over
the course of the next two years we expect to transition the vast
majority of our business to these subscription offerings."
Fourth Quarter Operational Overview
EMEA revenue was $273 million, an increase of 19 percent
compared to the fourth quarter last year as reported, and 21
percent on a constant currency basis. Revenue in the Americas
increased 15 percent compared to the fourth quarter last year to
$238 million. Revenue in APAC was $154 million, an increase of 2
percent compared to the fourth quarter last year as reported, and 7
percent on a constant currency basis. Revenue from emerging
economies was $107 million, an increase of 21 percent compared to
the fourth quarter last year as reported, and 22 percent on a
constant currency basis. Revenue from emerging economies
represented 16 percent of total revenue in the fourth quarter.
Revenue from the AEC business segment was $242 million, an
increase of 24 percent compared to the fourth quarter last year.
Revenue from the Platform Solutions and Emerging Business (PSEB)
segment was $189 million, a decrease of 4 percent compared to the
fourth quarter last year. Revenue from the Manufacturing business
segment was $190 million, an increase of 23 percent compared to the
fourth quarter last year. Revenue from the Media and Entertainment
business (M&E) segment was $43 million, an increase of 5
percent compared to the fourth quarter last year.
Revenue from Flagship products was $298 million, an increase of
4 percent compared to the fourth quarter last year. Revenue from
Suites was $249 million, an increase of 15 percent compared to the
fourth quarter last year. Revenue from New and Adjacent products
was $117 million, an increase of 41 percent compared to the fourth
quarter last year.
Fiscal 2015 Highlights*
- Total billings increased 18 percent
compared to fiscal 2014 as reported, and increased 20 percent on a
constant currency basis.
- Revenue was $2.51 billion, an increase
of 10 percent compared to fiscal 2014 as reported, and 12 percent
on a constant currency basis. Revenue contribution from the recent
acquisition of Delcam was approximately $48 million.
- Total subscriptions (maintenance,
desktop, and cloud) increased by approximately 385,000 to 2.23
million.
- Revenue from Suites increased 17
percent.
- Revenue from the AEC business segment
increased 19 percent.
- Revenue from the Manufacturing business
segment increased 17 percent.
- Total deferred revenue increased 28
percent to $1.16 billion.
- Cash flow from operations increased 26
percent to $708 million.
*All numbers are compared to fiscal 2014.
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. Autodesk's business outlook for
the first quarter and full year fiscal 2016 assumes, among other
things, a continuation of the current economic environment and
foreign exchange currency rate environment. A reconciliation
between the GAAP and non-GAAP estimates for fiscal 2016 is provided
below or in the tables following this press release.
First Quarter Fiscal 2016
Q1 FY16 (ending Q1 FY16 Guidance
Metrics April 30, 2015) Revenue (in millions)
$625 - $645
EPS GAAP $0.01 - $0.06
EPS Non-GAAP (1)
$0.25 - $0.30
_______________
(1) Non-GAAP earnings per diluted share exclude $0.16
related to stock-based compensation expense and $0.08 for the
amortization of acquisition related intangibles, net of tax.
Full Year Fiscal 2016
FY16 (ending FY16 Guidance Metrics
January 31, 2016)
Billings growth (1) 3 - 5%
Revenue growth (2) 3 - 5%
GAAP operating margin 2 - 4%
Non-GAAP operating
margin 13 - 15%
EPS GAAP $0.10 - $0.25
EPS Non-GAAP
(3) $1.05 - $1.20
Net subscription additions 375,000 -
425,000
_______________
(1) On a constant currency basis, billings growth would be
9% - 11%. (2) On a constant currency basis, revenue growth would be
7% - 9%. (3) Non-GAAP earnings per diluted share exclude $0.70
related to stock-based compensation expense and $0.25 for the
amortization of acquisition related intangibles, net of tax.
The first quarter and full year fiscal 2016 outlook assume a
projected annual effective tax rate of 28 percent and 26 percent
for GAAP and non-GAAP results, respectively.
Earnings Conference Call and Webcast
Autodesk will host its fourth quarter conference call today at
5:00 p.m. ET. The live broadcast can be accessed at http://www.autodesk.com/investors. Supplemental
financial information and prepared remarks for the conference call
will be posted to the investor relations section of Autodesk's
website simultaneously with this press release.
NOTE: The prepared remarks will not be read on the
conference call. The conference call will include only brief
remarks followed by questions and answers.
A replay of the broadcast will be available at 7:00 pm ET at
http://www.autodesk.com/investors.
This replay will be maintained on Autodesk's website for at least
12 months.
Safe Harbor Statement
This press release contains forward-looking statements that
involve risks and uncertainties, including statements in the
paragraphs under “Business Outlook” above, statements regarding the
impacts of our business model transition, statements regarding
growth in our cloud and term-based subscription offerings, and
other statements regarding our strategies, market and products
positions, performance, and results. There are a significant number
of factors that could cause actual results to differ materially
from statements made in this press release, including: general
market, political, economic and business conditions; failure to
maintain our revenue growth and profitability; failure to
successfully manage transitions to new business models and markets,
including the introduction of additional ratable revenue streams
and our continuing efforts to attract customers to our cloud-based
offerings and expenses related to the transition of our business
model; failure to control our expenses; our performance in
particular geographies, including emerging economies; the ability
of governments around the world to meet their financial and debt
obligations, and finance infrastructure projects; weak or negative
growth in the industries we serve; slowing momentum in subscription
billings or revenues; difficulty in predicting revenue from new
businesses and the potential impact on our financial results from
changes in our business models; difficulties encountered in
integrating new or acquired businesses and technologies; the
inability to identify and realize the anticipated benefits of
acquisitions; the financial and business condition of our reseller
and distribution channels; dependence on and the timing of large
transactions; fluctuation in foreign currency exchange rates; the
success of our foreign currency hedging program; failure to achieve
sufficient sell-through in our channels for new or existing
products; pricing pressure; unexpected fluctuations in our tax
rate; the timing and degree of expected investments in growth and
efficiency opportunities; changes in the timing of product releases
and retirements; and any unanticipated accounting charges.
Further information on potential factors that could affect the
financial results of Autodesk are included in Autodesk's Annual
Report on Form 10-K for the year ended January 31, 2014 and
Quarterly Reports on Form 10-Q for the quarters ended April 30,
July 31, 2014, and October 31, 2014, 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 helps people imagine, design and create a better world.
Everyone--from design professionals, engineers and architects to
digital artists, students and hobbyists--uses Autodesk
software to unlock their creativity and solve important challenges.
For more information visit autodesk.com or follow
@autodesk.
Autodesk is a registered trademark 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.
© 2015 Autodesk, Inc. All rights reserved.
Autodesk, Inc.
Condensed Consolidated Statements of
Operations
(In millions, except per share data)
Three Months Ended January 31,
Fiscal Year Ended January 31, 2015 2014
2015 2014 (Unaudited)
(Unaudited) Net revenue: License and other $ 354.3 $ 320.7 $
1,341.4 $ 1,254.9 Subscription 310.3 265.9 1,170.8
1,019.0 Total net revenue 664.6 586.6
2,512.2 2,273.9 Cost of revenue: Cost of license and
other revenue 53.9 48.1 208.5 178.7 Cost of subscription revenue
35.6 23.8 133.6 95.6 Total cost of
revenue 89.5 71.9 342.1 274.3 Gross
profit 575.1 514.7 2,170.1 1,999.6 Operating expenses: Marketing
and sales 289.9 232.3 998.0 842.6 Research and development 191.5
162.4 725.2 611.1 General and administrative (1) 70.4 53.0 283.3
211.8 Amortization of purchased intangibles (1) 9.3 9.0 39.8 36.5
Restructuring charges, net — 6.3 3.1 12.8
Total operating expenses 561.1 463.0 2,049.4
1,714.8 Income from operations 14.0 51.7 120.7 284.8
Interest and other (expense) income, net (21.1 ) 4.6 (37.7 )
(4.9 ) (Loss) income before income taxes (7.1 ) 56.3 83.0 279.9
Benefit (provision) for income taxes
18.6 (2.4 ) (1.2 ) (51.1 ) Net income $ 11.5 $ 53.9
$ 81.8 $ 228.8 Basic net income per share $
0.05 $ 0.24 $ 0.36 $ 1.02 Diluted net
income per share $ 0.05 $ 0.23 $ 0.35 $ 1.00
Weighted average shares used in computing basic net income
per share 227.2 225.5 227.1 224.0
Weighted average shares used in computing diluted net income per
share 232.2 231.1 232.4 229.6
_____________________
(1) Effective in second quarter of fiscal 2015, Autodesk
elected to present amortization of purchased customer
relationships, trade names, patents, and user lists as a separate
line item within operating expenses. As a result, amortization
previously reflected in “General and Administrative” expense was
reclassified to “Amortization of Purchased Intangibles" within
Operating Expenses. Prior period amounts have been revised to
conform to the current period presentation.
Autodesk, Inc. Condensed Consolidated Balance Sheets
(In millions)
January 31, 2015
January 31, 2014
(Unaudited)
ASSETS
Current assets: Cash and cash equivalents $ 1,410.6 $ 1,853.0
Marketable securities 615.8 414.1 Accounts receivable, net 458.9
423.7 Deferred income taxes, net 85.1 56.8 Prepaid expenses and
other current assets 100.9 87.4 Total current assets
2,671.3 2,835.0 Marketable securities 273.0 277.3
Computer equipment, software, furniture and leasehold improvements,
net 159.2 130.3 Developed technologies, net 86.5 63.1 Goodwill
1,456.2 1,009.9 Deferred income taxes, net 100.0 131.1 Other assets
167.6 148.3 Total assets $ 4,913.8 $ 4,595.0
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities: Accounts payable $ 100.5 $ 84.5 Accrued
compensation 253.3 181.2 Accrued income taxes 28.2 24.3 Deferred
revenue 900.8 696.2 Other accrued liabilities 117.3 85.3
Total current liabilities 1,400.1 1,071.5
Deferred revenue 256.3 204.4 Long term income taxes payable 158.8
211.8 Long term notes payable, net of discount 747.2 746.4 Other
liabilities 132.2 99.4 Stockholders’ equity: Preferred stock — —
Common stock and additional paid-in capital 1,773.1 1,637.3
Accumulated other comprehensive loss
(53.3 ) (0.6 ) Retained earnings 499.4 624.8 Total
stockholders’ equity 2,219.2 2,261.5 Total
liabilities and stockholders' equity $ 4,913.8 $ 4,595.0
Autodesk, Inc.
Condensed Consolidated Statements of
Cash Flows
(In millions)
Fiscal Year Ended January 31, 2015 2014
(Unaudited) Operating activities: Net income $ 81.8 $ 228.8
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation, amortization and accretion
145.9 128.9 Stock-based compensation expense 165.6 132.2 Excess tax
benefits from stock-based compensation (0.5 ) (9.1 ) Restructuring
charges, net 3.1 12.8 Other operating activities 16.2 (16.1 )
Changes in operating assets and liabilities, net of business
combinations 296.0 86.0 Net cash provided by
operating activities 708.1 563.5 Investing
activities: Purchases of marketable securities (1,355.1 ) (1,214.2
) Sales of marketable securities 190.0 537.0 Maturities of
marketable securities 969.0 742.1 Acquisitions, net of cash
acquired (630.0 ) (176.1 ) Capital Expenditures (75.5 ) (64.2 )
Other investing activities (4.0 ) (18.6 ) Net cash used in
investing activities (905.6 ) (194.0 ) Financing activities:
Proceeds from issuance of common stock, net of issuance costs 135.4
288.2 Repurchase and retirement of common stock (372.4 ) (423.8 )
Excess tax benefits from stock-based compensation 0.5 9.1 Other
financing activities (3.4 ) — Net cash used in financing
activities (239.9 ) (126.5 ) Effect of exchange rate changes on
cash and cash equivalents (5.0 ) (2.2 )
Net (decrease) increase in cash and cash
equivalents
(442.4 ) 240.8 Cash and cash equivalents at beginning of fiscal
year 1,853.0 1,612.2 Cash and cash equivalents at end
of fiscal year $ 1,410.6 $ 1,853.0
Autodesk, Inc.
Reconciliation of GAAP financial measures to non-GAAP
financial measures
(In millions, except per share data)
To supplement our consolidated financial statements presented on
a GAAP basis, Autodesk provides investors with certain non-GAAP
measures including non-GAAP gross margin, non-GAAP operating
expenses, non-GAAP operating margin, non-GAAP net income, non-GAAP
net income per share and billings. Excluding billings, these
non-GAAP financial measures are adjusted to exclude certain costs,
expenses, gains and losses, including stock-based compensation
expense, restructuring charges, amortization of purchased
intangibles, gain and loss on strategic investments, and related
income tax expenses. In the case of billings, we reconcile to
revenue by adjusting for the change in deferred revenue from the
beginning to the end of the period less any deferred revenue
balances acquired from business combination(s) during the period
and other discounts. See our reconciliation of GAAP financial
measures to non-GAAP financial measures herein. We believe these
exclusions are appropriate to enhance an overall understanding of
our past financial performance and also our prospects for the
future, as well as to facilitate comparisons with our historical
operating results. These adjustments to our GAAP results are made
with the intent of providing both management and investors a more
complete understanding of Autodesk's underlying operational results
and trends and our marketplace performance. For example, non-GAAP
results are an indication of our baseline performance before gains,
losses or other charges that are considered by management to be
outside our core operating results. In addition, these non-GAAP
financial measures are among the primary indicators management uses
as a basis for our planning and forecasting of future periods.
There are limitations in using non-GAAP financial measures
because the non-GAAP financial measures are not prepared in
accordance with generally accepted accounting principles 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. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for the directly comparable financial measures prepared
in accordance with GAAP in the United States. Investors should
review the reconciliation of the non-GAAP financial measures to
their most directly comparable GAAP financial measures as provided
in the tables accompanying this press release.
Three Months Ended January 31, Fiscal Year
Ended January 31, 2015 2014 2015
2014 (Unaudited) (Unaudited)
GAAP cost of license and other revenue $ 53.9 $ 48.1 $ 208.5
$ 178.7 Stock-based compensation expense (1.4 ) (1.1 ) (4.6 ) (3.8
) Amortization of developed technology (11.5 ) (10.6 ) (48.6 )
(40.1 ) Non-GAAP cost of license and other revenue $ 41.0 $
36.4 $ 155.3 $ 134.8 GAAP cost of
subscription revenue $ 35.6 $ 23.8 $ 133.6 $ 95.6 Stock-based
compensation expense (1.4 ) (0.6 ) (4.3 ) (2.2 ) Amortization of
developed technology (1.1 ) (1.0 ) (4.6 ) (4.1 ) Non-GAAP cost of
subscription revenue $ 33.1 $ 22.2 $ 124.7 $
89.3 GAAP gross profit $ 575.1 $ 514.7 $ 2,170.1 $
1,999.6 Stock-based compensation expense 2.8 1.7 8.9 6.0
Amortization of developed technology 12.6 11.6 53.2
44.2 Non-GAAP gross profit $ 590.5 $ 528.0
$ 2,232.2 $ 2,049.8 GAAP marketing and
sales $ 289.9 $ 232.3 $ 998.0 $ 842.6 Stock-based compensation
expense (21.4 ) (16.1 ) (72.4 ) (58.6 ) Non-GAAP marketing and
sales $ 268.5 $ 216.2 $ 925.6 $ 784.0
GAAP research and development $ 191.5 $ 162.4 $ 725.2 $
611.1 Stock-based compensation expense (16.7 ) (12.4 ) (56.0 )
(43.7 ) Non-GAAP research and development $ 174.8 $ 150.0
$ 669.2 $ 567.4 GAAP general and
administrative $ 70.4 $ 53.0 $ 283.3 $ 211.8 Stock-based
compensation expense (8.2 ) (5.9 ) (28.3 ) (23.9 ) Non-GAAP general
and administrative $ 62.2 $ 47.1 $ 255.0 $
187.9 GAAP amortization of purchased intangibles $
9.3 $ 9.0 $ 39.8 $ 36.5 Amortization of purchased intangibles $
(9.3 ) $ (9.0 ) $ (39.8 ) $ (36.5 ) Non-GAAP Amortization of
purchased intangibles $ — $ — $ — $ —
GAAP restructuring charges, net
$ — $ 6.3 $ 3.1 $ 12.8
Restructuring charges, net
— (6.3 ) (3.1 ) (12.8 )
Non-GAAP restructuring charges, net
$ — $ — $ — $ — GAAP operating
expenses $ 561.1 $ 463.0 $ 2,049.4 $ 1,714.8 Stock-based
compensation expense (46.3 ) (34.4 ) (156.7 ) (126.2 ) Amortization
of purchased intangibles (9.3 ) (9.0 ) (39.8 ) (36.5 )
Restructuring charges, net
— (6.3 ) (3.1 ) (12.8 ) Non-GAAP operating expenses $ 505.5
$ 413.3 $ 1,849.8 $ 1,539.3 GAAP
income from operations $ 14.0 $ 51.7 $ 120.7 $ 284.8 Stock-based
compensation expense 49.1 36.1 165.6 132.2 Amortization of
developed technology 12.6 11.6 53.2 44.2 Amortization of purchased
intangibles 9.3 9.0 39.8 36.5
Restructuring charges, net
— 6.3 3.1 12.8 Non-GAAP income from
operations $ 85.0 $ 114.7 $ 382.4 $ 510.5
GAAP interest and other income, net $ (21.1 ) $ 4.6 $
(37.7 ) $ (4.9 )
Loss on strategic investments
15.7 0.8 23.3 1.8 Non-GAAP interest and
other income, net $ (5.4 ) $ 5.4 $ (14.4 ) $ (3.1 )
GAAP provision for income taxes $ 18.6 $ (2.4 ) $ (1.2 ) $ (51.1 )
Discrete GAAP tax provision items (9.5 ) (7.9 ) (18.7 ) (10.2 )
Income tax effect of non-GAAP adjustments (29.9 ) (16.6 ) (75.8 )
(60.5 ) Non-GAAP provision for income tax $ (20.8 ) $ (26.9 ) $
(95.7 ) $ (121.8 ) GAAP net income $ 11.5 $ 53.9 $ 81.8 $
228.8 Stock-based compensation expense 49.1 36.1 165.6 132.2
Amortization of developed technology 12.6 11.6 53.2 44.2
Amortization of purchased intangibles 9.3 9.0 39.8 36.5
Restructuring charges, net
— 6.3 3.1 12.8
Loss on strategic investments
15.7 0.8 23.3 1.8 Discrete GAAP tax provision items (9.5 ) (7.9 )
(18.7 ) (10.2 ) Income tax effect of non-GAAP adjustments (29.9 )
(16.6 ) (75.8 ) (60.5 ) Non-GAAP net income $ 58.8 $ 93.2
$ 272.3 $ 385.6 GAAP diluted net income
per share $ 0.05 $ 0.23 $ 0.35 $ 1.00 Stock-based compensation
expense 0.21 0.15 0.71 0.57 Amortization of developed technology
0.05 0.05 0.23 0.19 Amortization of purchased intangibles 0.04 0.04
0.17 0.16
Restructuring charges, net
— 0.03 0.01 0.06
Loss on strategic investments
0.07 — 0.10 — Discrete GAAP tax provision items (0.04 ) (0.03 )
(0.08 ) (0.04 ) Income tax effect of non-GAAP adjustments (0.13 )
(0.07 ) (0.32 ) (0.26 ) Non-GAAP diluted net income per share $
0.25 $ 0.40 $ 1.17 $ 1.68
Autodesk, Inc.
Other Supplemental Financial
Information (a)
Fiscal Year 2015
QTR 1
QTR 2
QTR 3
QTR 4
YTD 2015
Financial Statistics ($ in millions,
except per share data):
Total Net Revenue:
$ 593 $ 637 $ 618 $ 665 $ 2,512 License and Other Revenue $ 316 $
350 $ 321 $ 354 $ 1,341 Subscription Revenue $ 276 $ 287 $ 298 $
310 $ 1,171 GAAP Gross Margin 87 % 86 % 86 % 87 % 86 %
Non-GAAP Gross Margin (1)(2) 89 % 89 % 89 % 89 % 89 % GAAP
Operating Expenses $ 472 $ 499 $ 517 $ 561 $ 2,049 GAAP Operating
Margin 7 % 8 % 2 % 2 % 5 % GAAP Net Income $ 28 $ 31 $ 11 $ 12 $ 82
GAAP Diluted Net Income Per Share (b) $ 0.12 $ 0.13 $ 0.05 $ 0.05 $
0.35 Non-GAAP Operating Expenses (1)(3) $ 427 $ 451 $ 467 $
506 $ 1,850 Non-GAAP Operating Margin (1)(4) 17 % 18 % 13 % 13 % 15
% Non-GAAP Net Income (1)(5)(c) $ 74 $ 82 $ 58 $ 59 $ 272 Non-GAAP
Diluted Net Income Per Share (1)(6)(b)(c) $ 0.32 $ 0.35 $ 0.25 $
0.25 $ 1.17 Total Cash and Marketable Securities $ 2,388 $
2,169 $ 2,157 $ 2,299 $ 2,299 Days Sales Outstanding 50 52 55 63
Capital Expenditures $ 15 $ 17 $ 28 $ 16 $ 76 Cash Flow from
Operating Activities $ 219 $ 96 $ 136 $ 257 $ 708 GAAP
Depreciation, Amortization and Accretion $ 36 $ 37 $ 37 $ 36 $ 146
Deferred Subscription Revenue Balance (c) $ 848 $ 839 $ 839
$ 937 $ 937
Revenue by Geography:
Americas $ 206 $ 223 $ 231 $ 238 $ 898 Europe, Middle East and
Africa $ 226 $ 244 $ 238 $ 273 $ 980 Asia Pacific $ 161 $ 170 $ 149
$ 154 $ 634 % of Total Rev from Emerging Economies 13 % 15 % 15 %
16 % 15 %
Revenue by Segment:
Architecture, Engineering and Construction $ 196 $ 218 $ 217 $ 242
$ 873 Platform Solutions and Emerging Business $ 212 $ 208 $ 188 $
189 $ 797 Manufacturing $ 147 $ 168 $ 170 $ 190 $ 676 Media and
Entertainment $ 38 $ 44 $ 43 $ 43 $ 167
Other Revenue Statistics:
% of Total Rev from Flagship 50 % 48 % 47 % 45 % 48 % % of Total
Rev from Suites 35 % 36 % 36 % 37 % 36 % % of Total Rev from New
and Adjacent 14 % 16 % 17 % 18 % 16 % % of Total Rev from AutoCAD
and AutoCAD LT 32 % 29 % 27 % 25 % 28 %
Favorable (Unfavorable) Impact of U.S.
Dollar Translation Relative to
Foreign Currencies Compared to
Comparable Prior Year Period:
FX Impact on Total Net Revenue $ (9 ) $ — $ (4 ) $ (11 ) $ (24 ) FX
Impact on Cost of Revenue and Total Operating Expenses $ 2 $ (2 ) $
3 $ 14 $ 17 FX Impact on Operating Income $ (7 ) $ (2 ) $ (1 ) $ 3
$ (7 )
Gross Margin by Segment:
Architecture, Engineering and Construction $ 176 $ 196 $ 194 $ 220
$ 786 Platform Solutions and Emerging Business $ 191 $ 185 $ 167 $
169 $ 712 Manufacturing (a) $ 133 $ 152 $ 153 $ 167 $ 604 Media and
Entertainment $ 29 $ 32 $ 32 $ 34 $ 127 Unallocated amounts (a) $
(15 ) $ (16 ) $ (15 ) $ (15 ) $ (59 )
Common Stock Statistics:
Common Shares Outstanding 227.5 227.2 227.2 227.0 227.0 Fully
Diluted Weighted Average Shares Outstanding 231.6 232.4 231.5 232.2
232.4 Shares Repurchased 2.0 1.9 1.9 1.1 6.9
Subscriptions (in millions):
Total Subscriptions (c) 1.94 2.01 2.13 2.23 2.23 (a) Totals
may not agree with the sum of the components due to rounding. (b)
Earnings per share were computed independently for each of the
periods presented; therefore the sum of the earnings per share
amounts for the quarters may not equal the total for the year.
(c) Total Subscriptions consists of
subscriptions from our maintenance, desktop, cloud service and
enterprise license offerings that are active as of the quarter end
date. For certain cloud based and enterprise license offerings,
subscriptions represent the monthly average activity within the
last three months of the quarter end date. Total subscriptions do
not include data from education offerings, consumer product
offerings, certain 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 the quarterly
comparisons of this calculation.
(1) To supplement our consolidated
financial statements presented on a GAAP basis, Autodesk provides
investors with certain non-GAAP measures including non-GAAP gross
margin, non-GAAP operating expenses, non-GAAP operating margin,
non-GAAP net income, non-GAAP net income per share and billings.
Excluding net billings, these non-GAAP financial measures are
adjusted to exclude certain costs, expenses, gains and losses,
including stock-based compensation expense, restructuring charges,
amortization of purchased intangibles, gain and loss on strategic
investments, and related income tax expenses. In the case of
billings, we reconcile to revenue by adjusting for the change in
deferred revenue from the beginning to the end of the period less
any deferred revenue balances acquired from business combination(s)
during the period and other discounts. See our reconciliation of
GAAP financial measures to non-GAAP financial measures herein. We
believe these exclusions are appropriate to enhance an overall
understanding of our past financial performance and also our
prospects for the future, as well as to facilitate comparisons with
our historical operating results. These adjustments to our GAAP
results are made with the intent of providing both management and
investors a more complete understanding of Autodesk's underlying
operational results and trends and our marketplace performance. For
example, non-GAAP results are an indication of our baseline
performance before gains, losses or other charges that are
considered by management to be outside our core operating results.
In addition, these non-GAAP financial measures are among the
primary indicators management uses as a basis for our planning and
forecasting of future periods. There are limitations in using
non-GAAP financial measures because the non-GAAP financial measures
are not prepared in accordance with generally accepted accounting
principles 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. The
presentation of this additional information is not meant to be
considered in isolation or as a substitute for the directly
comparable financial measures prepared in accordance with GAAP in
the United States. Investors should review the reconciliation of
the non-GAAP financial measures to their most directly comparable
GAAP financial measures as provided in the tables accompanying
Autodesk's press release.
(2) GAAP Gross Margin 87 %
86 % 86 % 87 % 86
% Stock-based compensation expense —
%
—
%
—
%
— %
1
% Amortization of developed technology 2 % 3 %
3 % 2 % 2 % Non-GAAP Gross Margin 89 %
89 % 89 % 89 % 89 % (3) GAAP Operating Expenses $ 472 $ 499
$ 517 $ 561 $ 2,049 Stock-based compensation expense (32 ) (38 )
(41 ) (46 ) (157 ) Amortization of purchased intangibles (11 ) (10
) (10 ) (9 ) (40 )
Restructuring charges, net
(2 ) (1 ) — —
(3 ) Non-GAAP Operating Expenses $ 427 $ 451 $ 467 $ 506 $
1,850 (4) GAAP Operating Margin 7 % 8 % 2 % 2 % 5 %
Stock-based compensation expense 6 % 6 % 7 % 8 % 7 % Amortization
of developed technology 2 % 2 % 2 % 2 % 2 % Amortization of
purchased intangibles 2 % 2 % 2 % 1 % 1 %
Restructuring charges, net
—
%
—
%
—
%
—
%
— % Non-GAAP Operating Margin 17 % 18 % 13 % 13 % 15 %
(5) GAAP Net Income $ 28 $ 31 $ 11 $ 12 $ 82 Stock-based
compensation expense 34 40 43 49 166 Amortization of developed
technology 13 15 13 13 53 Amortization of purchased intangibles 11
10 10 9 40
Restructuring charges, net
2 1 — — 3
Loss on strategic investments
4 3 1 16 23 Discrete GAAP tax provision items (2 ) (3 ) (5 ) (10 )
(19 ) Income tax effect of non-GAAP adjustments (16 )
(15 ) (15 ) (30 ) (76 ) Non-GAAP
Net Income $ 74 $ 82 $ 58 $ 59 $ 272 (6) GAAP Diluted Net
Income Per Share $ 0.12 $ 0.13 $ 0.05 $ 0.05 $ 0.35 Stock-based
compensation expense 0.14 0.18 0.19 0.21 0.71 Amortization of
developed technology 0.06 0.06 0.06 0.05 0.23 Amortization of
purchased intangibles 0.05 0.04 0.04 0.04 0.17
Restructuring charges, net
0.01 — — — 0.01
Loss on strategic investments
0.02 0.01 — 0.07 0.10 Discrete GAAP tax provision items (0.01 )
(0.01 ) (0.02 ) (0.04 ) (0.08 ) Income tax effect of non-GAAP
adjustments (0.07 ) (0.06 ) (0.07 )
(0.13 ) (0.32 ) Non-GAAP Diluted Net Income
Per Share $ 0.32 $ 0.35 $ 0.25 $ 0.25 $ 1.17
Reconciliation for Billings:
Q115
Q215
Q315
Q415
FY15
Year over year change in GAAP Net Revenue 4 % 13 % 11 % 13 % 10 %
Change in deferred revenue in the current period 8 % 12 % 13 % 2 %
8 % Change in acquisition related deferred revenue and other (2 )%
2 % 1 % (2 )% — %
Year over year change in Billings 10 % 27 %
25 % 13 % 18 %
Reconciliation for Guidance:
The following is a reconciliation of anticipated full year fiscal
2016 GAAP and non-GAAP operating margins:
Fiscal 2016
GAAP operating margin 2 %
4
% Stock-based compensation expense 8 % 8 % Amortization of
purchased intangibles
3
%
3
% Non-GAAP operating margin
13
% 15 %
Autodesk, Inc.Investors:David Gennarelli,
415-507-6033david.gennarelli@autodesk.comorPress:Noah Cole,
415-580-3535noah.cole@autodesk.com
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