SAN RAFAEL, Calif.,
Nov. 28, 2017 /PRNewswire/
-- Autodesk, Inc. (NASDAQ: ADSK) today reported financial
results for the third quarter of fiscal 2018.
Third Quarter Fiscal 2018
- Subscription plan (formerly known as new model) annualized
recurring revenue (ARR) was $924
million and increased 106 percent compared to the third
quarter last year as reported, and 108 percent on a constant
currency basis.
- Total ARR was $1.90 billion, an
increase of 24 percent compared to the third quarter last year as
reported, and 25 percent on a constant currency basis.
- Subscription plan subscriptions increased 307,000 from the
second quarter of fiscal 2018 to 1.9 million at the end of the
third quarter. Subscription plan subscriptions benefited from
110,000 maintenance subscribers that converted to product
subscription under the maintenance-to-subscription program.
- Total subscriptions increased 146,000 from the second quarter
of fiscal 2018 to 3.6 million at the end of the third quarter.
- Deferred revenue increased 15 percent to $1.76 billion, compared to $1.53 billion in the third quarter last year.
Unbilled deferred revenue at the end of the third quarter was
$148 million.
- Revenue was $515 million, an
increase of 5 percent compared to the third quarter last year as
reported, and 6 percent on a constant currency basis.
- Total GAAP spend (cost of revenue plus operating expenses) was
$615 million, an increase of 1
percent compared to the third quarter last year.
- Total non-GAAP spend was $542
million, an increase of 2 percent compared to the third
quarter last year. A reconciliation of GAAP to non-GAAP results is
provided in the accompanying tables.
- GAAP diluted net loss per share was $(0.55), compared to GAAP diluted net loss per
share of $(0.64) in the third quarter
last year.
- Non-GAAP diluted net loss per share was $(0.12), compared to non-GAAP diluted net loss
per share of $(0.18) in the third
quarter last year.
"We are pleased with another solid quarter of execution and
progress on our business model transition," said Andrew Anagnost, Autodesk president and
CEO. "We're experiencing healthy trends in several key
transition metrics, including ARR and deferred revenue growth, as
customers continue to embrace our new subscription offerings.
As we enter the growth phase of our model transition, we need to
re-balance investments to focus on our strategic priorities. This
includes divesting from some areas and increasing our investment in
others. We're taking this restructuring action from a
position of strength. This is not a cost reduction activity
as we maintain our commitment to keep total non-GAAP spend flat
this year and next."
"Our third quarter results mark our return to revenue growth as
we reached the one year mark of subscription-only sales," said
Scott Herren, Autodesk CFO.
"We are excited to have reached a significant milestone where the
base of subscription plan subscriptions has surpassed the base of
maintenance plan subscriptions for the first time. We are
also experiencing early success with the
maintenance-to-subscription program, which is a winning combination
for both our customers and Autodesk. Our solid third quarter
results and stable macro operating environment keep us confident in
our near-term and long-term goals."
Third Quarter Operational Overview
Subscription plan ARR was $924
million and increased 106 percent compared to the third
quarter last year as reported, and 108 percent on a constant
currency basis. Subscription plan ARR includes $70 million related to the
maintenance-to-subscription program. Maintenance plan ARR was
$978 million and decreased 10 percent
compared to the third quarter last year as reported, and on a
constant currency basis. Total ARR for the third quarter
increased 24 percent to $1.90 billion
compared to the third quarter last year as reported, and 25 percent
on a constant currency basis.
Subscription plan subscriptions (product, EBA, and cloud) were
1.90 million, a net increase of 307,000 from the second quarter of
fiscal 2018, led by new product subscriptions and 110,000 product
subscriptions that migrated from maintenance plan
subscriptions. Maintenance plan subscriptions were 1.69
million, a net decrease of 161,000 from the second quarter of
fiscal 2018, which includes the 110,000 that migrated to product
subscription. Total subscriptions were 3.59 million, a net
increase of 146,000 from the second quarter of fiscal
2018.
Total recurring revenue in the third quarter was 92 percent of
total revenue compared to 78 percent of total revenue in the third
quarter last year.
Revenue in the Americas was $215
million, an increase of 1 percent compared to the third
quarter last year. Revenue in EMEA was $205
million, an increase of 8 percent compared to the third
quarter last year as reported, and 10 percent on a constant
currency basis. Revenue in APAC was $95
million, an increase of 12 percent compared to the third
quarter last year as reported, and 10 percent on a constant
currency basis.
Restructuring
Autodesk today announced a restructuring plan to focus on the
company's strategic priorities of completing the subscription
transition; digitizing the company; and re-imagining manufacturing,
construction, and production. Through the restructuring,
Autodesk seeks to streamline the organization and re-balance
resources to better align with the company's priorities. By
realigning its investments, Autodesk is positioning itself to meet
its long-term goals, including keeping non-GAAP spend flat in
fiscal 2019.
The company anticipates taking a pre-tax restructuring charge in
the range of $135 million to $149
million. Approximately $91
million to $100 million in pre-tax charges will be taken in
the fourth quarter of fiscal 2018. The remaining charge will
be taken in fiscal 2019.
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 2018 assumes, among other things, a
continuation of the current economic environment and foreign
exchange currency rate environment. A reconciliation between
the fiscal 2018 GAAP and non-GAAP estimates is provided below or in
the tables following this press release.
Fourth Quarter
Fiscal 2018
|
|
Q4 FY18 Guidance
Metrics
|
Q4 FY18 (ending
January 31, 2018)
|
Revenue (in
millions)
|
$537 -
$547
|
EPS
GAAP
|
($1.18) -
($1.11)
|
EPS non-GAAP
(1)
|
($0.14) -
($0.10)
|
|
(1) Non-GAAP earnings
per diluted share excludes $0.43 related to restructuring and other
facility exit costs, $0.29 related to stock-based compensation
expense, between $0.28 and $0.25 related to GAAP-only tax charges,
and $0.04 for the amortization of acquisition-related
intangibles.
|
|
Full Year Fiscal
2018
|
|
FY18 Guidance
Metrics
|
FY18 (ending
January 31, 2018)
|
Revenue (in
millions) (1)
|
$2,040 -
$2,050
|
GAAP spend growth
(cost of revenue plus operating expenses)
|
Approx.
+1%
|
Non-GAAP spend
growth (cost of revenue plus operating expenses) (2)
|
Approx.
flat
|
EPS
GAAP
|
($2.98) -
($2.93)
|
EPS non-GAAP
(3)
|
($0.53) -
($0.49)
|
Net subscription
additions
|
625k -
650k
|
Total
ARR
|
24% - 26%
|
|
|
(1) Excluding the
impact of foreign currency exchange rates and hedge gains/losses,
revenue guidance would be $2.045 - $2.055 billion.
|
(2) Non-GAAP spend
excludes $248 million related to stock-based compensation expense,
$96 million related to restructuring and other facility exit costs,
$36 million for the amortization of acquisition-related
intangibles, and $22 million related to CEO transition
costs.
|
(3) Non-GAAP earnings
per diluted share excludes $1.13 related to stock-based
compensation expense, between $0.57 and $0.56 related to GAAP-only
tax charges, $0.44 related to restructuring and other facility exit
costs, $0.17 for the amortization of acquisition-related
intangibles, $0.10 related to CEO transition costs, and $0.04
related to losses on strategic investments and
dispositions.
|
The fourth quarter and full year fiscal 2018 outlook assume a
projected annual effective tax rate of (15) percent and 26 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 term-based product
subscriptions, cloud service offerings, and flexible enterprise
business arrangements. 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 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.
Constant Currency (CC) Growth Rates: 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.
License and Other Revenue: Represents (1) perpetual
license revenue and (2) other revenue. Perpetual license revenue
includes software license revenue from the sale of perpetual
licenses, and Creative Finishing. Other revenue includes revenue
such as standalone consulting and training, and is recognized over
time as the services are performed.
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.
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 hybrid of desktop and
SaaS 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
term-based product subscriptions, flexible enterprise business
arrangements and all other services as part of a bundled
subscription agreement accounted for as a single unit of
accounting. (i.e. cloud services, maintenance, and
consulting).
Total Subscriptions: Consists of subscriptions from our
maintenance plans and subscription plan offerings that are active
and paid as of the quarter end date. For certain cloud
service offerings and flexible enterprise business arrangements,
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
multi-year billing plans for subscription, services, license and
maintenance for which the associated revenue has not been
recognized and the customer has not been invoiced. Unbilled
deferred revenue is not included on our Consolidated Balance Sheet
until invoiced to the customer.
Safe Harbor Statement
This press release contains forward-looking statements that
involve risks and uncertainties, including statements regarding the
effectiveness of efforts to maintain our spend, statements in the
paragraphs under "Restructuring" and "Business Outlook" above,
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 subscriptions and ARR,
statements about the expansion of our market opportunity,
statements about our restructuring activities, 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;
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 fiscal year ended January 31, 2017 and Quarterly Report on Form
10-Q for the fiscal quarter ended July 31,
2017, 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 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.
© 2017 Autodesk, Inc. All rights reserved.
Autodesk,
Inc.
|
Condensed
Consolidated Statements of Operations (1)
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
October 31,
|
|
Nine Months
Ended
October 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Unaudited)
|
Net
revenue:
|
|
|
|
|
|
|
|
Maintenance
|
$
|
244.4
|
|
|
$
|
273.2
|
|
|
$
|
769.8
|
|
|
$
|
835.1
|
|
Subscription
|
231.1
|
|
|
112.4
|
|
|
600.6
|
|
|
299.7
|
|
Total maintenance and subscription revenue
|
475.5
|
|
|
385.6
|
|
|
1,370.4
|
|
|
1,134.8
|
|
License and
other
|
39.8
|
|
|
104.0
|
|
|
132.4
|
|
|
417.4
|
|
Total
net revenue
|
515.3
|
|
|
489.6
|
|
|
1,502.8
|
|
|
1,552.2
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Cost of maintenance
and subscription revenue
|
53.9
|
|
|
46.8
|
|
|
161.6
|
|
|
140.2
|
|
Cost of license and
other revenue
|
19.6
|
|
|
24.3
|
|
|
56.0
|
|
|
86.8
|
|
Amortization of
developed technology
|
4.0
|
|
|
10.4
|
|
|
12.7
|
|
|
32.0
|
|
Total
cost of revenue
|
77.5
|
|
|
81.5
|
|
|
230.3
|
|
|
259.0
|
|
Gross
profit
|
437.8
|
|
|
408.1
|
|
|
1,272.5
|
|
|
1,293.2
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Marketing and
sales
|
272.5
|
|
|
255.0
|
|
|
785.8
|
|
|
738.9
|
|
Research and
development
|
191.8
|
|
|
192.6
|
|
|
573.3
|
|
|
579.1
|
|
General and
administrative
|
68.8
|
|
|
70.4
|
|
|
225.1
|
|
|
213.7
|
|
Amortization of
purchased intangibles
|
4.7
|
|
|
6.8
|
|
|
15.3
|
|
|
22.5
|
|
Restructuring
(benefits) charges and other facility exit costs, net
|
—
|
|
|
3.2
|
|
|
0.2
|
|
|
71.5
|
|
Total
operating expenses
|
537.8
|
|
|
528.0
|
|
|
1,599.7
|
|
|
1,625.7
|
|
Loss from
operations
|
(100.0)
|
|
|
(119.9)
|
|
|
(327.2)
|
|
|
(332.5)
|
|
Interest and other
expense, net
|
(11.2)
|
|
|
(9.4)
|
|
|
(31.8)
|
|
|
(23.1)
|
|
Loss before income
taxes
|
(111.2)
|
|
|
(129.3)
|
|
|
(359.0)
|
|
|
(355.6)
|
|
Provision for income
taxes
|
(8.6)
|
|
|
(13.5)
|
|
|
(34.4)
|
|
|
(53.1)
|
|
Net loss
|
$
|
(119.8)
|
|
|
$
|
(142.8)
|
|
|
$
|
(393.4)
|
|
|
$
|
(408.7)
|
|
Basic net loss per
share
|
$
|
(0.55)
|
|
|
$
|
(0.64)
|
|
|
$
|
(1.79)
|
|
|
$
|
(1.83)
|
|
Diluted net loss per
share
|
$
|
(0.55)
|
|
|
$
|
(0.64)
|
|
|
$
|
(1.79)
|
|
|
$
|
(1.83)
|
|
Weighted average
shares used in computing basic net loss per share
|
219.6
|
|
|
222.3
|
|
|
219.7
|
|
|
223.3
|
|
Weighted average
shares used in computing diluted net loss per share
|
219.6
|
|
|
222.3
|
|
|
219.7
|
|
|
223.3
|
|
|
(1) In the first
quarter of fiscal 2018, in order to improve the transparency of our
revenue reporting, we updated our Condensed Consolidated Statement
of Operations to include three lines of revenue: maintenance
revenue, subscription revenue, and license and other revenue.
In this format, all subscription revenue is reported in the
subscription line and all maintenance revenue is reported in the
maintenance line. All remaining non-recurring revenue is
reported as license and other revenue. Cost of revenue was updated
consistent with the changes noted in revenue and to separately
state the amount of amortization from developed technology to be
consistent with the presentation of the amortization of purchased
intangibles within operating expenses. This simplified the
reconciliation between the income statement presentation and
recurring revenue, and improved the link between our financial
statements and our business model transition.
|
Autodesk,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(In
millions)
|
|
|
|
|
|
October 31,
2017
|
|
January 31,
2017
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
1,025.2
|
|
|
$
|
1,213.1
|
|
Marketable
securities
|
428.7
|
|
|
686.8
|
|
Accounts receivable,
net
|
307.8
|
|
|
452.3
|
|
Prepaid expenses and
other current assets
|
110.2
|
|
|
108.4
|
|
Total current
assets
|
1,871.9
|
|
|
2,460.6
|
|
Marketable
securities
|
264.3
|
|
|
306.2
|
|
Computer equipment,
software, furniture and leasehold improvements, net
|
148.1
|
|
|
158.6
|
|
Developed
technologies, net
|
29.9
|
|
|
45.7
|
|
Goodwill
|
1,588.7
|
|
|
1,561.1
|
|
Deferred income
taxes, net
|
64.7
|
|
|
63.9
|
|
Other
assets
|
184.4
|
|
|
202.0
|
|
Total
assets
|
$
|
4,152.0
|
|
|
$
|
4,798.1
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
93.3
|
|
|
$
|
93.5
|
|
Accrued
compensation
|
195.9
|
|
|
238.2
|
|
Accrued income
taxes
|
21.7
|
|
|
50.0
|
|
Deferred
revenue
|
1,333.1
|
|
|
1,270.1
|
|
Current portion of
long-term notes payable, net
|
—
|
|
|
398.7
|
|
Other accrued
liabilities
|
106.0
|
|
|
134.9
|
|
Total current
liabilities
|
1,750.0
|
|
|
2,185.4
|
|
Long-term deferred
revenue
|
430.8
|
|
|
517.9
|
|
Long-term income
taxes payable
|
31.3
|
|
|
39.3
|
|
Long-term deferred
income taxes
|
97.9
|
|
|
91.5
|
|
Long-term notes
payable, net
|
1,585.4
|
|
|
1,092.0
|
|
Other
liabilities
|
149.3
|
|
|
138.4
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common stock and
additional paid-in capital
|
1,930.8
|
|
|
1,876.3
|
|
Accumulated other
comprehensive loss
|
(155.5)
|
|
|
(178.5)
|
|
Accumulated
deficit
|
(1,668.0)
|
|
|
(964.2)
|
|
Total stockholders'
equity
|
107.3
|
|
|
733.6
|
|
Total liabilities and
stockholders' equity
|
$
|
4,152.0
|
|
|
$
|
4,798.1
|
|
Autodesk,
Inc
|
Condensed
Consolidated Statements of Cash Flows
|
(In
millions)
|
|
|
|
|
|
Nine Months Ended
October 31,
|
|
2017
|
|
2016
|
|
(Unaudited)
|
Operating
activities:
|
|
|
|
Net loss
|
$
|
(393.4)
|
|
|
$
|
(408.7)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
Depreciation,
amortization and accretion
|
81.5
|
|
|
104.5
|
|
Stock-based
compensation expense
|
199.5
|
|
|
162.5
|
|
Deferred income
taxes
|
7.3
|
|
|
(39.6)
|
|
Restructuring charges
and other facility exit costs, net
|
0.2
|
|
|
71.5
|
|
Other operating
activities
|
18.1
|
|
|
3.4
|
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
Accounts
receivable
|
143.3
|
|
|
393.8
|
|
Prepaid expenses and
other current assets
|
(6.5)
|
|
|
(12.7)
|
|
Accounts payable and
accrued liabilities
|
(69.3)
|
|
|
(71.9)
|
|
Deferred
revenue
|
(21.8)
|
|
|
15.6
|
|
Accrued income
taxes
|
(37.3)
|
|
|
(64.3)
|
|
Net cash (used in)
provided by operating activities
|
(78.4)
|
|
|
154.1
|
|
Investing
activities:
|
|
|
|
Purchases of
marketable securities
|
(419.6)
|
|
|
(1,106.4)
|
|
Sales of marketable
securities
|
199.2
|
|
|
544.7
|
|
Maturities of
marketable securities
|
530.1
|
|
|
1,012.6
|
|
Capital
expenditures
|
(39.3)
|
|
|
(65.1)
|
|
Acquisitions, net of
cash acquired
|
—
|
|
|
(85.2)
|
|
Other investing
activities
|
(11.5)
|
|
|
(14.8)
|
|
Net cash provided by
investing activities
|
258.9
|
|
|
285.8
|
|
Financing
activities:
|
|
|
|
Proceeds from
issuance of common stock, net of issuance costs
|
93.2
|
|
|
102.2
|
|
Taxes paid related to
net share settlement of equity awards
|
(120.6)
|
|
|
(58.9)
|
|
Repurchase and
retirement of common stock
|
(437.9)
|
|
|
(397.6)
|
|
Proceeds from debt,
net of discount
|
496.9
|
|
|
—
|
|
Repayment of
debt
|
(400.0)
|
|
|
—
|
|
Other financing
activities
|
(5.8)
|
|
|
—
|
|
Net cash used in
financing activities
|
(374.2)
|
|
|
(354.3)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
5.8
|
|
|
(2.1)
|
|
Net (decrease)
increase in cash and cash equivalents
|
(187.9)
|
|
|
83.5
|
|
Cash and cash
equivalents at beginning of the period
|
1,213.1
|
|
|
1,353.0
|
|
Cash and cash
equivalents at end of the period
|
$
|
1,025.2
|
|
|
$
|
1,436.5
|
|
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
October 31,
|
|
Nine Months
Ended
October 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
GAAP cost of
maintenance and subscription revenue
|
$
|
53.9
|
|
|
$
|
46.8
|
|
|
$
|
161.6
|
|
|
$
|
140.2
|
|
Stock-based
compensation expense
|
(2.9)
|
|
|
(2.2)
|
|
|
(8.5)
|
|
|
(6.2)
|
|
Non-GAAP cost of
maintenance and subscription revenue
|
$
|
51.0
|
|
|
$
|
44.6
|
|
|
$
|
153.1
|
|
|
$
|
134.0
|
|
|
|
|
|
|
|
|
|
GAAP cost of license
and other revenue
|
$
|
19.6
|
|
|
$
|
24.3
|
|
|
$
|
56.0
|
|
|
$
|
86.8
|
|
Stock-based
compensation expense
|
(1.0)
|
|
|
(1.3)
|
|
|
(3.1)
|
|
|
(4.1)
|
|
Non-GAAP cost of
license and other revenue
|
$
|
18.6
|
|
|
$
|
23.0
|
|
|
$
|
52.9
|
|
|
$
|
82.7
|
|
|
|
|
|
|
|
|
|
GAAP amortization of
developed technology
|
$
|
4.0
|
|
|
$
|
10.4
|
|
|
$
|
12.7
|
|
|
$
|
32.0
|
|
Amortization of
developed technology
|
(4.0)
|
|
|
(10.4)
|
|
|
(12.7)
|
|
|
(32.0)
|
|
Non-GAAP amortization
of developed technology
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
437.8
|
|
|
$
|
408.1
|
|
|
$
|
1,272.5
|
|
|
$
|
1,293.2
|
|
Stock-based
compensation expense
|
3.9
|
|
|
3.5
|
|
|
11.6
|
|
|
10.3
|
|
Amortization of
developed technology
|
4.0
|
|
|
10.4
|
|
|
12.7
|
|
|
32.0
|
|
Non-GAAP gross
profit
|
$
|
445.7
|
|
|
$
|
422.0
|
|
|
$
|
1,296.8
|
|
|
$
|
1,335.5
|
|
|
|
|
|
|
|
|
|
GAAP marketing and
sales
|
$
|
272.5
|
|
|
$
|
255.0
|
|
|
$
|
785.8
|
|
|
$
|
738.9
|
|
Stock-based
compensation expense
|
(27.7)
|
|
|
(24.2)
|
|
|
(80.1)
|
|
|
(69.0)
|
|
Non-GAAP marketing
and sales
|
$
|
244.8
|
|
|
$
|
230.8
|
|
|
$
|
705.7
|
|
|
$
|
669.9
|
|
|
|
|
|
|
|
|
|
GAAP research and
development
|
$
|
191.8
|
|
|
$
|
192.6
|
|
|
$
|
573.3
|
|
|
$
|
579.1
|
|
Stock-based
compensation expense
|
(20.1)
|
|
|
(20.9)
|
|
|
(61.7)
|
|
|
(60.0)
|
|
Non-GAAP research and
development
|
$
|
171.7
|
|
|
$
|
171.7
|
|
|
$
|
511.6
|
|
|
$
|
519.1
|
|
|
|
|
|
|
|
|
|
GAAP general and
administrative
|
$
|
68.8
|
|
|
$
|
70.4
|
|
|
$
|
225.1
|
|
|
$
|
213.7
|
|
Stock-based
compensation expense
|
(13.4)
|
|
|
(8.0)
|
|
|
(29.5)
|
|
|
(23.2)
|
|
CEO transition costs
(1)
|
—
|
|
|
|
—
|
|
|
(21.6)
|
|
|
|
—
|
|
Non-GAAP general and
administrative
|
$
|
55.4
|
|
|
$
|
62.4
|
|
|
$
|
174.0
|
|
|
$
|
190.5
|
|
|
|
|
|
|
|
|
|
GAAP amortization of
purchased intangibles
|
$
|
4.7
|
|
|
$
|
6.8
|
|
|
$
|
15.3
|
|
|
$
|
22.5
|
|
Amortization of
purchased intangibles
|
(4.7)
|
|
|
(6.8)
|
|
|
(15.3)
|
|
|
(22.5)
|
|
Non-GAAP amortization
of purchased intangibles
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
GAAP restructuring
(benefits) charges and other facility exit costs, net
|
$
|
—
|
|
|
$
|
3.2
|
|
|
$
|
0.2
|
|
|
$
|
71.5
|
|
Restructuring
(benefits) charges and other facility exit costs, net
|
—
|
|
|
(3.2)
|
|
|
(0.2)
|
|
|
(71.5)
|
|
Non-GAAP
restructuring (benefits) charges and other facility exit costs,
net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
537.8
|
|
|
$
|
528.0
|
|
|
$
|
1,599.7
|
|
|
$
|
1,625.7
|
|
Stock-based
compensation expense
|
(61.2)
|
|
|
(53.1)
|
|
|
(171.3)
|
|
|
(152.2)
|
|
Amortization of
purchased intangibles
|
(4.7)
|
|
|
(6.8)
|
|
|
(15.3)
|
|
|
(22.5)
|
|
CEO transition costs
(1)
|
—
|
|
|
—
|
|
|
(21.6)
|
|
|
—
|
|
Restructuring
(benefits) charges and other facility exit costs, net
|
—
|
|
|
(3.2)
|
|
|
(0.2)
|
|
|
(71.5)
|
|
Non-GAAP operating
expenses
|
$
|
471.9
|
|
|
$
|
464.9
|
|
|
$
|
1,391.3
|
|
|
$
|
1,379.5
|
|
|
|
|
|
|
|
|
|
GAAP Spend
|
$
|
615.3
|
|
|
$
|
609.5
|
|
|
$
|
1,830.0
|
|
|
$
|
1,884.7
|
|
Stock-based
compensation expense
|
(65.1)
|
|
|
(56.6)
|
|
|
(182.9)
|
|
|
(162.5)
|
|
Amortization of
developed technology
|
(4.0)
|
|
|
(10.4)
|
|
|
(12.7)
|
|
|
(32.0)
|
|
Amortization of
purchased intangibles
|
(4.7)
|
|
|
(6.8)
|
|
|
(15.3)
|
|
|
(22.5)
|
|
CEO transition costs
(1)
|
—
|
|
|
—
|
|
|
(21.6)
|
|
|
—
|
|
Restructuring
(benefits) charges and other facility exit costs, net
|
—
|
|
|
(3.2)
|
|
|
(0.2)
|
|
|
(71.5)
|
|
Non-GAAP
Spend
|
$
|
541.5
|
|
|
$
|
532.5
|
|
|
$
|
1,597.3
|
|
|
$
|
1,596.2
|
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
$
|
(100.0)
|
|
|
$
|
(119.9)
|
|
|
$
|
(327.2)
|
|
|
$
|
(332.5)
|
|
Stock-based
compensation expense
|
65.1
|
|
|
56.6
|
|
|
182.9
|
|
|
162.5
|
|
Amortization of
developed technology
|
4.0
|
|
|
10.4
|
|
|
12.7
|
|
|
32.0
|
|
Amortization of
purchased intangibles
|
4.7
|
|
|
6.8
|
|
|
15.3
|
|
|
22.5
|
|
CEO transition costs
(1)
|
—
|
|
|
—
|
|
|
21.6
|
|
|
—
|
|
Restructuring
(benefits) charges and other facility exit costs, net
|
—
|
|
|
3.2
|
|
|
0.2
|
|
|
71.5
|
|
Non-GAAP (loss)
income from operations
|
$
|
(26.2)
|
|
|
$
|
(42.9)
|
|
|
$
|
(94.5)
|
|
|
$
|
(44.0)
|
|
|
|
|
|
|
|
|
|
GAAP interest and
other expense, net
|
$
|
(11.2)
|
|
|
$
|
(9.4)
|
|
|
$
|
(31.8)
|
|
|
$
|
(23.1)
|
|
Loss (gain) on
strategic investments and dispositions
|
1.7
|
|
|
(0.4)
|
|
|
9.5
|
|
|
(0.6)
|
|
Non-GAAP interest and
other expense, net
|
$
|
(9.5)
|
|
|
$
|
(9.8)
|
|
|
$
|
(22.3)
|
|
|
$
|
(23.7)
|
|
|
|
|
|
|
|
|
|
GAAP provision for
income taxes
|
$
|
(8.6)
|
|
|
$
|
(13.5)
|
|
|
$
|
(34.4)
|
|
|
$
|
(53.1)
|
|
Discrete GAAP tax
items
|
(2.5)
|
|
|
(9.0)
|
|
|
(10.2)
|
|
|
4.0
|
|
Income tax effect of
non-GAAP adjustments
|
20.4
|
|
|
36.2
|
|
|
75.0
|
|
|
66.7
|
|
Non-GAAP benefit
(provision) for income tax
|
$
|
9.3
|
|
|
$
|
13.7
|
|
|
$
|
30.4
|
|
|
$
|
17.6
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
$
|
(119.8)
|
|
|
$
|
(142.8)
|
|
|
$
|
(393.4)
|
|
|
$
|
(408.7)
|
|
Stock-based
compensation expense
|
65.1
|
|
|
56.6
|
|
|
182.9
|
|
|
162.5
|
|
Amortization of
developed technology
|
4.0
|
|
|
10.4
|
|
|
12.7
|
|
|
32.0
|
|
Amortization of
purchased intangibles
|
4.7
|
|
|
6.8
|
|
|
15.3
|
|
|
22.5
|
|
CEO transition costs
(1)
|
—
|
|
|
—
|
|
|
21.6
|
|
|
—
|
|
Restructuring
(benefits) charges and other facility exit costs, net
|
—
|
|
|
3.2
|
|
|
0.2
|
|
|
71.5
|
|
Loss (gain) on
strategic investments and dispositions
|
1.7
|
|
|
(0.4)
|
|
|
9.5
|
|
|
(0.6)
|
|
Discrete GAAP tax
items
|
(2.5)
|
|
|
(9.0)
|
|
|
(10.2)
|
|
|
4.0
|
|
Income tax effect of
non-GAAP adjustments
|
20.4
|
|
|
36.2
|
|
|
75.0
|
|
|
66.7
|
|
Non-GAAP net (loss)
income
|
$
|
(26.4)
|
|
|
$
|
(39.0)
|
|
|
$
|
(86.4)
|
|
|
$
|
(50.1)
|
|
|
|
|
|
|
|
|
|
GAAP diluted net loss
per share (2)
|
$
|
(0.55)
|
|
|
$
|
(0.64)
|
|
|
$
|
(1.79)
|
|
|
$
|
(1.83)
|
|
Stock-based
compensation expense
|
0.30
|
|
|
0.25
|
|
|
0.83
|
|
|
0.73
|
|
Amortization of
developed technology
|
0.02
|
|
|
0.05
|
|
|
0.06
|
|
|
0.14
|
|
Amortization of
purchased intangibles
|
0.02
|
|
|
0.03
|
|
|
0.07
|
|
|
0.10
|
|
CEO transition costs
(1)
|
—
|
|
|
—
|
|
|
0.09
|
|
|
—
|
|
Restructuring
(benefits) charges and other facility exit costs, net
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.32
|
|
Loss (gain) on
strategic investments and dispositions
|
0.01
|
|
|
—
|
|
|
0.05
|
|
|
—
|
|
Discrete GAAP tax
items
|
(0.01)
|
|
|
(0.03)
|
|
|
(0.04)
|
|
|
0.02
|
|
Income tax effect of
non-GAAP adjustments
|
0.09
|
|
|
0.15
|
|
|
0.34
|
|
|
0.30
|
|
Non-GAAP diluted net
(loss) income per share (2)
|
$
|
(0.12)
|
|
|
$
|
(0.18)
|
|
|
$
|
(0.39)
|
|
|
$
|
(0.22)
|
|
|
|
|
|
|
|
|
|
GAAP diluted shares
used in per share calculation
|
219.6
|
|
|
222.3
|
|
|
219.7
|
|
|
223.3
|
|
Shares included in
non-GAAP net income per share, but excluded from GAAP net loss per
share as they would have been anti-dilutive
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Non-GAAP diluted
weighted average shares used in per share calculation
|
219.6
|
|
|
222.3
|
|
|
219.7
|
|
|
223.3
|
|
|
(1)
|
CEO transition costs
include stock-based compensation of $16.6 million related to the
acceleration of eligible stock awards in the nine months ended
October 31, 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 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.