SAN RAFAEL, Calif.,
May 24, 2018 /PRNewswire/ -- Autodesk, Inc. (NASDAQ:
ADSK) today reported financial results for the first quarter of
fiscal 2019.
First Quarter Fiscal 2019
Note: Starting the first quarter of fiscal 2019, Autodesk
reports its results under two new accounting standards.
Revenue is now reported under Accounting Standard Codification
("ASC") 606 and sales commissions are now reported under ASC
340-40. We did not recast historical information as we elected to
use the modified retrospective transition method. These new
standards did not result in a change in timing or amount of revenue
recognized for the majority of our maintenance and subscription
offerings. However, we are required to capitalize and
amortize sales commissions under the new standards. ASC 606 and ASC
340-40 do not affect cash flows or subscriptions.
- Subscription plan ARR was $1.40
billion, an increase of 103 percent compared to the first
quarter last year as reported, and 101 percent on a constant
currency basis. Under the prior revenue accounting standard, ASC
605, subscription plan ARR was $1.43
billion, an increase of 106 percent compared to the first
quarter last year.
- Total ARR was $2.13 billion, an
increase of 22 percent compared to the first quarter last year as
reported, and on a constant currency basis. Under ASC 605, total
ARR was $2.17 billion, an increase of
25 percent compared to the first quarter last year.
- Subscription plan subscriptions increased 307,000 from the
fourth quarter of fiscal 2018 to 2.57 million at the end of the
first quarter of fiscal 2019. Subscription plan subscriptions
benefited from 154,000 maintenance subscribers that converted to
product subscription under the maintenance-to-subscription (M2S)
program.
- Total subscriptions increased 101,000 from the fourth quarter
of fiscal 2018 to 3.82 million at the end of the first quarter of
fiscal 2019.
- Deferred revenue was $1.81
billion, flat compared to the first quarter last year.
Unbilled deferred revenue at the end of the first quarter was
$412 million. Total deferred revenue
(deferred revenue plus unbilled deferred revenue) was $2.22 billion, an increase of approximately 21
percent compared to the first quarter last year. Under ASC 605,
total deferred revenue was $2.28
billion, an increase of approximately 24 percent compared to
the first quarter last year.
- Revenue was $560 million, an
increase of 15 percent compared to the first quarter last year as
reported, and on a constant currency basis. Under ASC 605, total
revenue was $574 million, an increase
of 18 percent compared to the first quarter last year.
- Billings were $411 million, a
decrease of 18 percent compared to the first quarter last year
driven primarily by the initial impact of the adoption of ASC 606.
Under ASC 605, billings were $561
million, an increase of 12 percent compared to the first
quarter last year.
- Total GAAP spend (cost of revenue plus operating expenses) was
$615 million, an increase of 2
percent compared to the first quarter last year. Absent ASC 340-40,
total GAAP spend was $602 million, a
decrease of 1 percent compared to the first quarter last year.
- Total non-GAAP spend was $531
million, an increase of 1 percent compared to the first
quarter last year. A reconciliation of GAAP to non-GAAP results is
provided in the accompanying tables. Absent ASC 340-40, total
non-GAAP spend was $518 million, a
decrease of 1 percent compared to the first quarter last year.
- GAAP diluted net loss per share was $(0.38), compared to GAAP diluted net loss per
share of $(0.59) in the first quarter
last year. Under ASC 605 and absent ASC 340-40, total GAAP diluted
net loss per share was $(0.27).
- Non-GAAP diluted earnings per share was $0.06, compared to non-GAAP diluted net loss per
share of $(0.16) in the first quarter
last year. Under ASC 605 and absent ASC 340-40, total non-GAAP
diluted net income per share was $0.16.
For definitions, please view the Glossary of Terms later in this
document.
"Our first quarter results are a good start to the new fiscal
year and demonstrate Autodesk is firmly in the growth phase of our
business model transition," said Andrew
Anagnost, Autodesk president and CEO. "Once again, our
focus on driving growth in ARR has yielded strong results, which we
believe will accelerate as we move through the year. Our
focus and investment on our customers' experience continued to
drive customers to migrate from maintenance to subscription during
the quarter. We've now seen approximately half a million
maintenance subscriptions convert to product subscriptions in less
than a year and we expect that number to grow significantly in the
coming quarters."
"Our growth in ARR was only part of the story during the first
quarter, as we also delivered strong growth in billings, total
deferred revenue, and ARPS," said Scott
Herren, Autodesk CFO. "This quarter also marked
another milestone in our business model transition with our return
to non-GAAP profitability. Overall, we remain confident in
achieving the targets we set for this year and the long-term
targets laid out at our recent investor day."
First Quarter Operational Overview
Subscription plan ARR was $1.40
billion, an increase of 103 percent compared to the first
quarter last year as reported, and 101 percent on a constant
currency basis. Subscription plan ARR includes $273 million related to the
maintenance-to-subscription program. Maintenance plan ARR was
$725 million, a decrease of 31
percent compared to the first quarter last year as reported, and on
a constant currency basis. Total ARR was $2.13 billion, an increase of 22 percent compared
to the first quarter last year as reported, and on a constant
currency basis.
Subscription plan subscriptions (product, EBA, and cloud) were
2.57 million, a net increase of 307,000 from the fourth quarter of
fiscal 2018, led by new product subscriptions and 154,000 product
subscriptions that migrated from maintenance plan
subscriptions. Maintenance plan subscriptions were 1.24
million, a net decrease of 206,000 from the fourth quarter of
fiscal 2018, which includes the 154,000 that migrated to product
subscription. Total subscriptions were 3.82 million, a net
increase of 101,000 from the fourth quarter of fiscal
2018.
Total recurring revenue in the first quarter was 95 percent of
total revenue compared to 90 percent of total revenue in the first
quarter last year.
Revenue in the Americas was $234
million, an increase of 11 percent compared to the first
quarter last year. Revenue in EMEA was $221
million, an increase of 16 percent compared to the first
quarter last year as reported, and on a constant currency basis.
Revenue in APAC was $106 million, an
increase of 23 percent compared to the first quarter last year as
reported, and 22 percent on a constant currency basis.
Under ASC 605
- Subscription plan ARR was $1.43
billion, an increase of 106 percent compared to the first
quarter last year.
- Maintenance plan ARR was $746
million, a decrease of 29 percent compared to the first
quarter last year.
- Total ARR was $2.17 billion, an
increase of 25 percent compared to the first quarter last
year.
- Billings were $561 million, an
increase of 12 percent compared to the first quarter last
year.
- Total revenue was $574 million,
an increase of 18 percent compared to the first quarter last year
as reported, and on a constant currency basis.
- Revenue in the Americas was $238
million, an increase of 13 percent compared to the first
quarter last year.
- Revenue in EMEA was $229 million,
an increase of 21 percent compared to the first quarter last year,
and 20 percent a constant currency basis.
- Revenue in APAC was $107 million,
an increase of 25 percent compared to the first quarter last year,
and 24 percent on a constant currency basis.
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 second
quarter and full year fiscal 2019 assumes, among other things, a
continuation of the current economic environment and foreign
exchange currency rate environment. A reconciliation between
the fiscal 2019 GAAP and non-GAAP estimates is provided below or in
the tables following this press release.
Starting the first quarter of fiscal 2019, Autodesk reports its
results under two new accounting standards. Revenue is now
reported under Accounting Standard Codification ("ASC") 606 and
sales commissions are now reported under ASC 340-40. We did not
recast historical information as we elected to use the modified
retrospective transition method. These new standards did not result
in a change in timing or amount of revenue recognized for the
majority of our maintenance and subscription offerings.
However, we are required to capitalize and amortize sales
commissions under the new standards. ASC 606 and ASC 340-40 do not
affect cash flows or subscriptions.
Second Quarter
Fiscal 2019
|
|
|
Q2 FY19 Guidance
Metrics
|
Q2 FY19 under 606
(ending July 31,
2018)
|
Revenue (in
millions)
|
$595 -
$605
|
EPS
GAAP
|
$(0.38) -
$(0.35)
|
EPS non-GAAP
(1)
|
$0.13 -
$0.16
|
|
|
|
(1)
|
Non-GAAP earnings per
diluted share excludes $0.27 related to stock-based compensation
expense, between $0.16 related to
GAAP-only tax charges, $0.05 related to restructuring and other
facility exit costs, and $0.03 for the amortization of
acquisition-
related intangibles.
|
Full Year Fiscal
2019
|
|
|
|
|
|
FY19 Guidance
Metrics
|
FY19 under 605
(ending
January 31, 2019)
|
FY19 under 606
(ending
January 31, 2019) (1)
|
Billings (in
millions)
|
$2,720 -
$2,820
|
$2,560 - $2,660
(2)
|
Revenue (in
millions)
|
$2,495 -
$2,545
|
$2,455 - $2,505
(3)
|
GAAP spend growth
(cost of revenue plus operating expenses)
|
(2.5)% -
(1.5)%
|
(2.5)% -
(1.5)%
|
Non-GAAP spend
growth (cost of revenue plus operating expenses) (4)
|
1 - 2%
|
1 - 2%
|
EPS
GAAP
|
$(0.58) -
$(0.40)
|
$(0.73) -
$(0.55)
|
EPS non-GAAP
(5)
|
$0.92 -
$1.10
|
$0.77 -
$0.95
|
Net subscription
additions
|
500k -
550k
|
500k -
550k
|
Total ARR
growth
|
29% - 31%
|
28% - 30%
|
|
|
|
|
|
|
(1)
|
The move to the new
revenue standard results in a net reduction to revenue and EPS of
approximately $40 million and $0.15 respectively, compared to what
would have been recognized under ASC 605, and a reduction of
approximately $20M in ARR.
|
(2)
|
Billings guidance
reflects the initial impact of the adoption of ASC 606. This
adjustment does not impact cash flow.
|
(3)
|
Excluding the impact
of foreign currency exchange rates and hedge gains/losses, revenue
guidance would be $2,420 - $2,470 million.
|
(4)
|
Non-GAAP spend
excludes $235 million related to stock-based compensation expense,
$33 million related to restructuring and other facility exit costs,
and $28 million for the amortization of acquisition-related
intangibles.
|
(5)
|
Non-GAAP earnings per
diluted share excludes $1.08 related to stock-based compensation
expense, $0.15 related to GAAP-only tax charges, $0.15 related to
restructuring and other facility exit costs, $0.13 for the
amortization of acquisition-related intangibles, and ($0.01)
related to gains on strategic investments and
dispositions.
|
The second quarter and full year fiscal 2019 outlook assume a
projected annual effective tax rate of (68) percent and 19 percent
for GAAP and non-GAAP results, respectively. Assumptions for
the annual effective tax rate are regularly evaluated and may
change based on the projected geographic mix of earnings. At
this stage of the business model transition, small shifts in
geographic profitability significantly impact the annual effective
tax rate.
Earnings Conference Call and Webcast
Autodesk will host its second quarter conference call today at
5:00 p.m. ET. The live broadcast can
be accessed at http://www.autodesk.com/investor. 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.
A replay of the broadcast will be available at 7:00 p.m. ET at http://www.autodesk.com/investor.
This replay will be maintained on Autodesk's website for at least
12 months.
Glossary of Terms
Annualized Recurring Revenue (ARR): Represents the
annualized value of our average monthly recurring revenue for the
preceding three months. "Maintenance plan ARR" captures ARR
relating to traditional maintenance attached to perpetual licenses.
"Subscription plan ARR" captures ARR relating to subscription
offerings. Refer to the definition of recurring revenue below for
more details on what is included within ARR. 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.
ARR is currently one of our key performance metrics to assess
the health and trajectory of our business. ARR should be viewed
independently of revenue and deferred revenue as ARR is a
performance metric and is not intended to be combined with any of
these items.
Annualized Revenue Per Subscription (ARPS): Is calculated
by dividing our annualized recurring revenue by the total number of
subscriptions.
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.
Enterprise Business Agreements (EBAs): These represent
programs providing enterprise customers with token-based access or
a fixed maximum number of seats to a broad pool of Autodesk
products over a defined contract term.
Free cash flow: Cash flow from operating activities minus
capital expenditures.
Maintenance Plan: Our maintenance plans provide our
customers with a cost effective and predictable budgetary option to
obtain the productivity benefits of our new releases and
enhancements when and if released during the term of their
contracts. Under our maintenance plans, customers are eligible to
receive unspecified upgrades when and if available, and technical
support. We recognize maintenance revenue over the term of the
agreements, generally between one and three years.
Other Revenue: Consists of revenue from consulting,
training and other services, and is recognized over time as the
services are performed. Other revenue also includes software
license revenue from the sale of our discontinued perpetual
licenses.
Product Subscription: Provide customers the most
flexible, cost-effective way to access and manage 3D design,
engineering, and entertainment software tools. Our product
subscriptions currently represent a hybrid of desktop and SaaS
functionality, which provides a device-independent, collaborative
design workflow for designers and their stakeholders.
Recurring Revenue: Consists of the revenue for the period
from our traditional maintenance plans and revenue from our
subscription plan offerings. It excludes subscription revenue
related to consumer product offerings, select Creative Finishing
product offerings, education offerings, and third party products.
Recurring revenue acquired with the acquisition of a business is
captured when total subscriptions are captured in our systems and
may cause variability in the comparison of this
calculation.
Subscription Plan: Comprises our term-based product
subscriptions, cloud service offerings, and enterprise business
agreements (EBAs). Subscriptions represent a combined hybrid
offering of desktop software and cloud functionality which provides
a device-independent, collaborative design workflow for designers
and their stakeholders. With subscription, customers can use our
software anytime, anywhere, and get access to the latest updates to
previous versions.
Subscription Revenue: Includes subscription fees from
product subscriptions, cloud service offerings, and enterprise
business agreements (EBAs).
Total Deferred Revenue: Is calculated by adding together
total short term, long term, and unbilled deferred
revenue.
Total Subscriptions: Consists of subscriptions from our
maintenance plans and subscription plan offerings that are active
and paid as of the fiscal year end date. For certain cloud
service offerings and enterprise business agreements (EBAs),
subscriptions represent the monthly average activity reported
within the last three months of the quarter end date. Total
subscriptions do not include education offerings, consumer product
offerings, select Creative Finishing product offerings, Autodesk
Buzzsaw, Autodesk Constructware, and third party products.
Subscriptions acquired with the acquisition of a business are
captured once the data conforms to our subscription count
methodology and when added, may cause variability in the comparison
of this calculation.
Unbilled deferred revenue: Unbilled deferred revenue
represents contractually stated or committed orders under early
renewal and multi-year billing plans for subscription, services,
license and maintenance for which the associated deferred revenue
has not been recognized. Under ASC 606, unbilled deferred revenue
is not included as a receivable or deferred revenue on our
Consolidated Balance Sheet.
Safe Harbor Statement
This press release contains forward-looking statements that
involve risks and uncertainties, including statements in the
paragraphs under "Business Outlook" above, statements regarding ARR
growth acceleration and maintenance to subscription conversions,
other statements about our short-term and long-term targets,
statements regarding the impacts and results of our business model
transition, expectations regarding the transition of product
offerings to subscription and acceptance by our customers and
partners of subscriptions, expectations for billings, revenue,
subscriptions, spend, EPS and ARR, statements about the
impact of ASC 606, and other statements regarding our strategies,
market and product positions, performance and results. There are a
significant number of factors that could cause actual results to
differ materially from statements made in this press release,
including: failure to achieve our revenue and profitability
objectives; failure to successfully manage transitions to new
business models and markets; failure to maintain cost reductions or
otherwise control our expenses; the success of our restructuring
activities; difficulty in predicting revenue from new businesses
and the potential impact on our financial results from changes in
our business models; general market, political, economic, and
business conditions; any imposition of new tariffs or trade
barriers; the impact of non-cash charges on our financial results;
fluctuation in foreign currency exchange rates; the success of our
foreign currency hedging program; our performance in particular
geographies, including emerging economies; the ability of
governments around the world to meet their financial and debt
obligations, and finance infrastructure projects; weak or negative
growth in the industries we serve; slowing momentum in subscription
billings or revenues; difficulties encountered in integrating new
or acquired businesses and technologies; the inability to identify
and realize the anticipated benefits of acquisitions; the financial
and business condition of our reseller and distribution channels;
dependence on and the timing of large transactions; failure to
achieve sufficient sell-through in our channels for new or existing
products; pricing pressure; unexpected fluctuations in our annual
effective tax rate; significant effects of tax legislation and
judicial or administrative interpretation of tax regulations,
including the Tax Cuts and Jobs Act; the timing and degree of
expected investments in growth and efficiency opportunities;
changes in the timing of product releases and retirements; and any
unanticipated accounting charges. Our estimates as to tax rate and
the impact of the Tax Cuts and Jobs Act on our business are based
on current tax law, including current interpretations of the Tax
Cuts and Jobs Act, and could be affected by changing
interpretations of the Act, as well as additional legislation and
guidance around the Act.
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 fiscal year ended January 31, 2018, which is on file with the U.S.
Securities and Exchange Commission. Autodesk disclaims any
obligation to update the forward-looking statements provided to
reflect events that occur or circumstances that exist after the
date on which they were made.
About Autodesk
Autodesk makes software for people who make things. If you've
ever driven a high-performance car, admired a towering skyscraper,
used a smartphone, or watched a great film, chances are you've
experienced what millions of Autodesk customers are doing with our
software. Autodesk gives you the power to make anything. For more
information visit autodesk.com or follow @autodesk.
Autodesk, 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.
© 2018 Autodesk, Inc. All rights reserved.
Autodesk,
Inc.
|
|
|
|
Condensed
Consolidated Statements of Operations
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
|
Three Months Ended
April 30,
|
|
2018
|
|
2017
|
|
(Unaudited)
|
Net
revenue:
|
|
|
|
Maintenance
|
$
|
181.2
|
|
$
|
263.6
|
Subscription
|
350.4
|
|
173.4
|
Total maintenance and subscription revenue
|
531.6
|
|
437.0
|
Other
|
28.3
|
|
48.7
|
Total net
revenue
|
559.9
|
|
485.7
|
Cost of
revenue:
|
|
|
|
Cost of maintenance
and subscription revenue
|
50.4
|
|
54.9
|
Cost of other
revenue
|
12.8
|
|
18.6
|
Amortization of
developed technology
|
3.6
|
|
4.7
|
Total cost of
revenue
|
66.8
|
|
78.2
|
Gross
profit
|
493.1
|
|
407.5
|
Operating
expenses:
|
|
|
|
Marketing and
sales
|
276.4
|
|
255.7
|
Research and
development
|
172.8
|
|
187.7
|
General and
administrative
|
72.9
|
|
78.3
|
Amortization of
purchased intangibles
|
3.8
|
|
5.7
|
Restructuring charges
(benefits) and other facility exit costs, net
|
22.5
|
|
(0.3)
|
Total operating
expenses
|
548.4
|
|
527.1
|
Loss from
operations
|
(55.3)
|
|
(119.6)
|
Interest and other
expense, net
|
(8.5)
|
|
(1.8)
|
Loss before income
taxes
|
(63.8)
|
|
(121.4)
|
Provision for income
taxes
|
(18.6)
|
|
(8.2)
|
Net loss
|
$
|
(82.4)
|
|
$
|
(129.6)
|
Basic net loss per
share
|
$
|
(0.38)
|
|
$
|
(0.59)
|
Diluted net loss per
share
|
$
|
(0.38)
|
|
$
|
(0.59)
|
Weighted average
shares used in computing basic net loss per share
|
|
218.6
|
|
|
219.9
|
Weighted average
shares used in computing diluted net loss per share
|
|
218.6
|
|
|
219.9
|
Autodesk,
Inc.
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
April 30,
2018
|
|
January 31,
2018
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
1,093.0
|
|
|
$
|
1,078.0
|
|
Marketable
securities
|
199.9
|
|
|
245.2
|
|
Accounts receivable,
net
|
206.7
|
|
|
438.2
|
|
Prepaid expenses and
other current assets
|
198.4
|
|
|
116.5
|
|
Total current
assets
|
1,698.0
|
|
|
1,877.9
|
|
Marketable
securities
|
171.5
|
|
|
190.8
|
|
Computer equipment,
software, furniture and leasehold improvements, net
|
158.2
|
|
|
145.0
|
|
Developed
technologies, net
|
23.1
|
|
|
27.1
|
|
Goodwill
|
1,604.9
|
|
|
1,620.2
|
|
Deferred income
taxes, net
|
67.0
|
|
|
81.7
|
|
Other
assets
|
188.7
|
|
|
170.9
|
|
Total
assets
|
$
|
3,911.4
|
|
|
$
|
4,113.6
|
|
LIABILITIES AND
STOCKHOLDERS' DEFICIT
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
103.5
|
|
|
$
|
94.7
|
|
Accrued
compensation
|
127.5
|
|
|
250.9
|
|
Accrued income
taxes
|
24.6
|
|
|
28.0
|
|
Deferred
revenue
|
1,469.2
|
|
|
1,551.6
|
|
Current portion of
long-term notes payable, net
|
—
|
|
|
—
|
|
Other accrued
liabilities
|
127.8
|
|
|
198.0
|
|
Total current
liabilities
|
1,852.6
|
|
|
2,123.2
|
|
Long-term deferred
revenue
|
337.2
|
|
|
403.5
|
|
Long-term income
taxes payable
|
41.7
|
|
|
41.6
|
|
Long-term deferred
income taxes
|
84.8
|
|
|
66.6
|
|
Long-term notes
payable, net
|
1,586.6
|
|
|
1,586.0
|
|
Other
liabilities
|
137.1
|
|
|
148.7
|
|
Stockholders'
deficit:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common stock and
additional paid-in capital
|
2,001.0
|
|
|
1,952.7
|
|
Accumulated other
comprehensive loss
|
(133.8)
|
|
|
(123.8)
|
|
Accumulated
deficit
|
(1,995.8)
|
|
|
(2,084.9)
|
|
Total stockholders'
deficit
|
(128.6)
|
|
|
(256.0)
|
|
Total liabilities and
stockholders' deficit
|
$
|
3,911.4
|
|
|
$
|
4,113.6
|
|
Autodesk,
Inc.
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
Three Months Ended
April 30,
|
|
2018
|
|
2017
|
|
(Unaudited)
|
Operating
activities:
|
|
|
|
Net loss
|
$
|
(82.4)
|
|
|
$
|
(129.6)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
Depreciation,
amortization and accretion
|
24.1
|
|
|
28.4
|
|
Stock-based
compensation expense
|
54.4
|
|
|
66.8
|
|
Deferred income
taxes
|
13.3
|
|
|
(0.4)
|
|
Restructuring charges
(benefits) and other facility exit costs, net
|
22.5
|
|
|
(0.3)
|
|
Other operating
activities
|
10.5
|
|
|
7.3
|
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
Accounts
receivable
|
231.4
|
|
|
220.9
|
|
Prepaid expenses and
other current assets
|
(1.4)
|
|
|
6.2
|
|
Accounts payable and
accrued liabilities
|
(227.7)
|
|
|
(133.1)
|
|
Deferred
revenue
|
(58.5)
|
|
|
13.3
|
|
Accrued income
taxes
|
(3.1)
|
|
|
(34.3)
|
|
Net cash (used in)
provided by operating activities
|
(16.9)
|
|
|
45.2
|
|
Investing
activities:
|
|
|
|
Purchases of
marketable securities
|
(9.9)
|
|
|
(119.4)
|
|
Sales of marketable
securities
|
6.2
|
|
|
100.0
|
|
Maturities of
marketable securities
|
68.6
|
|
|
282.6
|
|
Capital
expenditures
|
(16.7)
|
|
|
(8.6)
|
|
Acquisitions, net of
cash acquired
|
—
|
|
|
—
|
|
Other investing
activities
|
(0.6)
|
|
|
3.9
|
|
Net cash provided by
investing activities
|
47.6
|
|
|
258.5
|
|
Financing
activities:
|
|
|
|
Proceeds from
issuance of common stock, net of issuance costs
|
49.1
|
|
|
50.1
|
|
Taxes paid related to
net share settlement of equity awards
|
(38.8)
|
|
|
(33.0)
|
|
Repurchase and
retirement of common stock
|
(22.0)
|
|
|
(195.9)
|
|
Net cash used in
financing activities
|
(11.7)
|
|
|
(178.8)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(4.0)
|
|
|
2.2
|
|
Net increase in cash
and cash equivalents
|
15.0
|
|
|
127.1
|
|
Cash and cash
equivalents at beginning of the period
|
1,078.0
|
|
|
1,213.1
|
|
Cash and cash
equivalents at end of the period
|
$
|
1,093.0
|
|
|
$
|
1,340.2
|
|
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 non-GAAP diluted shares used in per share
calculation. These non-GAAP financial measures are adjusted to
exclude certain costs, expenses, gains and losses, including
stock-based compensation expense, CEO transition costs,
restructuring (benefits) charges and other facility exit costs,
amortization of developed technology, amortization of purchased
intangibles, gain and loss on strategic investments and
dispositions, and related income tax expenses. 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 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.
|
|
|
|
|
The following table
shows Autodesk's non-GAAP results reconciled to GAAP results
included in this release.
|
|
|
|
|
|
Three Months Ended
April 30,
|
|
2018
|
2017
|
|
(Unaudited)
|
|
|
|
|
GAAP cost of
maintenance and subscription revenue
|
$
|
50.4
|
|
|
$
|
54.9
|
|
Stock-based
compensation expense
|
(2.7)
|
|
|
(2.8)
|
|
Non-GAAP cost of
maintenance and subscription revenue
|
$
|
47.7
|
|
|
$
|
52.1
|
|
|
|
|
|
GAAP cost of other
revenue
|
$
|
12.8
|
|
|
$
|
18.6
|
|
Stock-based
compensation expense
|
(0.8)
|
|
|
(1.1)
|
|
Non-GAAP cost of
other revenue
|
$
|
12.0
|
|
|
$
|
17.5
|
|
|
|
|
|
GAAP amortization of
developed technology
|
$
|
3.6
|
|
|
$
|
4.7
|
|
Amortization of
developed technology
|
(3.6)
|
|
|
(4.7)
|
|
Non-GAAP amortization
of developed technology
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
GAAP gross
profit
|
$
|
493.1
|
|
|
$
|
407.5
|
|
Stock-based
compensation expense
|
3.5
|
|
|
3.9
|
|
Amortization of
developed technology
|
3.6
|
|
|
4.7
|
|
Non-GAAP gross
profit
|
$
|
500.2
|
|
|
$
|
416.1
|
|
|
|
|
|
GAAP marketing and
sales
|
$
|
276.4
|
|
|
$
|
255.7
|
|
Stock-based
compensation expense
|
(24.0)
|
|
|
(26.4)
|
|
Non-GAAP marketing
and sales
|
$
|
252.4
|
|
|
$
|
229.3
|
|
|
|
|
|
GAAP research and
development
|
$
|
172.8
|
|
|
$
|
187.7
|
|
Stock-based
compensation expense
|
(17.8)
|
|
|
(21.2)
|
|
Non-GAAP research and
development
|
$
|
155.0
|
|
|
$
|
166.5
|
|
|
|
|
|
GAAP general and
administrative
|
$
|
72.9
|
|
|
$
|
78.3
|
|
Stock-based
compensation expense
|
(9.1)
|
|
|
(7.5)
|
|
CEO transition costs
(1)
|
—
|
|
|
(11.0)
|
|
Non-GAAP general and
administrative
|
$
|
63.8
|
|
|
$
|
59.8
|
|
|
|
|
|
GAAP amortization of
purchased intangibles
|
$
|
3.8
|
|
|
$
|
5.7
|
|
Amortization of
purchased intangibles
|
(3.8)
|
|
|
(5.7)
|
|
Non-GAAP amortization
of purchased intangibles
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
GAAP restructuring
charges (benefits) and other facility exit costs, net
|
$
|
22.5
|
|
|
$
|
(0.3)
|
|
Restructuring charges
(benefits) and other facility exit costs, net
|
(22.5)
|
|
|
0.3
|
|
Non-GAAP
restructuring charges (benefits) and other facility exit costs,
net
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
548.4
|
|
|
$
|
527.1
|
|
Stock-based
compensation expense
|
(50.9)
|
|
|
(55.1)
|
|
Amortization of
purchased intangibles
|
(3.8)
|
|
|
(5.7)
|
|
CEO transition costs
(1)
|
—
|
|
|
(11.0)
|
|
Restructuring charges
(benefits) and other facility exit costs, net
|
(22.5)
|
|
|
0.3
|
|
Non-GAAP operating
expenses
|
$
|
471.2
|
|
|
$
|
455.6
|
|
|
|
|
|
GAAP spend
|
$
|
615.2
|
|
|
$
|
605.3
|
|
Stock-based
compensation expense
|
(54.4)
|
|
|
(59.0)
|
|
Amortization of
developed technology
|
(3.6)
|
|
|
(4.7)
|
|
Amortization of
purchased intangibles
|
(3.8)
|
|
|
(5.7)
|
|
CEO transition costs
(1)
|
—
|
|
|
(11.0)
|
|
Restructuring charges
(benefits) and other facility exit costs, net
|
(22.5)
|
|
|
0.3
|
|
Non-GAAP
spend
|
$
|
530.9
|
|
|
$
|
525.2
|
|
|
|
|
|
GAAP loss from
operations
|
$
|
(55.3)
|
|
|
$
|
(119.6)
|
|
Stock-based
compensation expense
|
54.4
|
|
|
59.0
|
|
Amortization of
developed technology
|
3.6
|
|
|
4.7
|
|
Amortization of
purchased intangibles
|
3.8
|
|
|
5.7
|
|
CEO transition costs
(1)
|
—
|
|
|
11.0
|
|
Restructuring charges
(benefits) and other facility exit costs, net
|
22.5
|
|
|
(0.3)
|
|
Non-GAAP income
(loss) from operations
|
$
|
29.0
|
|
|
$
|
(39.5)
|
|
|
|
|
|
GAAP interest and
other expense, net
|
$
|
(8.5)
|
|
|
$
|
(1.8)
|
|
Gain on strategic
investments and dispositions
|
(2.7)
|
|
|
(5.7)
|
|
Non-GAAP interest and
other expense, net
|
$
|
(11.2)
|
|
|
$
|
(7.5)
|
|
|
|
|
|
GAAP provision for
income taxes
|
$
|
(18.6)
|
|
|
$
|
(8.2)
|
|
Discrete GAAP tax
items
|
—
|
|
|
(7.6)
|
|
Income tax effect of
non-GAAP adjustments
|
15.2
|
|
|
28.0
|
|
Non-GAAP (provision)
benefit for income tax
|
$
|
(3.4)
|
|
|
$
|
12.2
|
|
|
|
|
|
GAAP net
loss
|
$
|
(82.4)
|
|
|
$
|
(129.6)
|
|
Stock-based
compensation expense
|
54.4
|
|
|
59.0
|
|
Amortization of
developed technology
|
3.6
|
|
|
4.7
|
|
Amortization of
purchased intangibles
|
3.8
|
|
|
5.7
|
|
CEO transition costs
(1)
|
—
|
|
|
11.0
|
|
Restructuring charges
(benefits) and other facility exit costs, net
|
22.5
|
|
|
(0.3)
|
|
Gain on strategic
investments and dispositions
|
(2.7)
|
|
|
(5.7)
|
|
Discrete GAAP tax
items
|
—
|
|
|
(7.6)
|
|
Income tax effect of
non-GAAP adjustments
|
15.2
|
|
|
28.0
|
|
Non-GAAP net income
(loss)
|
$
|
14.4
|
|
|
$
|
(34.8)
|
|
|
|
|
|
GAAP diluted net loss
per share (2)
|
$
|
(0.38)
|
|
|
$
|
(0.59)
|
|
Stock-based
compensation expense
|
0.25
|
|
|
0.27
|
|
Amortization of
developed technology
|
0.02
|
|
|
0.02
|
|
Amortization of
purchased intangibles
|
0.02
|
|
|
0.03
|
|
CEO transition costs
(1)
|
—
|
|
|
0.04
|
|
Restructuring charges
and other facility exit costs, net
|
0.09
|
|
|
—
|
|
Gain on strategic
investments and dispositions
|
(0.01)
|
|
|
(0.03)
|
|
Discrete GAAP tax
items
|
—
|
|
|
(0.03)
|
|
Income tax effect of
non-GAAP adjustments
|
0.07
|
|
|
0.13
|
|
Non-GAAP diluted net
income (loss) per share (2)
|
$
|
0.06
|
|
|
$
|
(0.16)
|
|
|
|
|
|
GAAP diluted shares
used in per share calculation
|
218.6
|
|
|
219.9
|
|
Shares included in
non-GAAP net income per share, but excluded from GAAP net loss per
share as they would have been anti-dilutive
|
3.0
|
|
|
—
|
|
Non-GAAP diluted
weighted average shares used in per share calculation
|
221.6
|
|
|
219.9
|
|
|
|
|
|
|
|
(1)
|
CEO transition costs
include stock-based compensation of $7.8 million related to the
acceleration of eligible stock awards in the three months ended
April 30, 2017. CEO transition costs also include severance
payments, legal fees incurred with the CEO transition and
recruiting costs related to the search for a new
CEO.
|
(2)
|
Net income (loss) per
share was computed independently for each of the periods presented;
therefore the sum of the net loss per share amount for the quarters
may not equal the total for the year.
|
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SOURCE Autodesk, Inc.