SAN RAFAEL, Calif.,
March 6, 2018 /PRNewswire/ -- Autodesk, Inc. (NASDAQ:
ADSK) today reported financial results for the fourth quarter of
fiscal 2018.
Fourth Quarter Fiscal 2018
- Subscription plan ARR was $1.18
billion an increase of 106 percent compared to the fourth
quarter last year as reported, and 105 percent on a constant
currency basis.
- Total ARR was $2.05 billion, an
increase of 25 percent compared to the fourth quarter last year as
reported, and on a constant currency basis.
- Subscription plan subscriptions increased 371,000 from the
third quarter of fiscal 2018 to 2.27 million at the end of the
fourth quarter. Subscription plan subscriptions benefited from
168,000 maintenance subscribers that converted to product
subscription under the maintenance-to-subscription program.
- Total subscriptions increased 127,000 from the third quarter of
fiscal 2018 to 3.72 million at the end of the fourth quarter.
- Deferred revenue was $1.96
billion, an increase of 9 percent compared to the fourth
quarter last year. Unbilled deferred revenue at the end of the
fourth quarter of fiscal 2018 was $326
million. Total deferred revenue (deferred revenue plus
unbilled deferred revenue) was $2.28
billion, an increase of approximately 25 percent compared to
the fourth quarter last year.
- Revenue was $554 million, an
increase of 16 percent compared to the fourth quarter last year as
reported, and on a constant currency basis.
- Total GAAP spend (cost of revenue plus operating expenses) was
$736 million, an increase of 14
percent compared to the fourth quarter last year.
- Total non-GAAP spend was $571
million, an increase of 2 percent compared to the fourth
quarter last year. A reconciliation of GAAP to non-GAAP results is
provided in the accompanying tables.
- GAAP diluted net loss per share was $(0.79), compared to GAAP diluted net loss per
share of $(0.78) in the fourth
quarter last year.
- Non-GAAP diluted net loss per share was $(0.09), compared to non-GAAP diluted net loss
per share of $(0.28) in the fourth
quarter last year.
"We continue to execute well on our business model transition
and are poised to further accelerate ARR growth next year," said
Andrew Anagnost, Autodesk president
and CEO. "We were pleased to see a meaningful increase in
total annualized revenue per subscription (ARPS) and a better than
expected conversion rate with the maintenance to subscription
program. Total subscription additions for the quarter were
impacted by a greater than expected number of customers shifting
from individual products to higher value Industry Collections
resulting in ARR growth."
"During the quarter we reached another significant milestone in
our business model transition where subscription plan ARR surpassed
maintenance plan for the first time, in-line with our projections,"
said Scott Herren, Autodesk
CFO. "In addition to strong revenue and ARR growth, we also
experienced strength in billings and deferred revenue, generating
better than expected cash flow from operations. Our fiscal
2018 was another successful year and sets us up to achieve our
fiscal 2020 goals for ARR growth and free cash flow."
Fourth Quarter Operational Overview
Subscription plan ARR was $1.18
billion, an increase of 106 percent compared to the fourth
quarter last year as reported, and 105 percent on a constant
currency basis. Subscription plan ARR includes $152 million related to the
maintenance-to-subscription program. Maintenance plan ARR was
$879 million, a decrease of 18
percent compared to the fourth quarter last year as reported, and
17 percent on a constant currency basis. Total ARR for the
fourth quarter increased 25 percent to $2.05
billion compared to the fourth quarter last year as
reported, and on a constant currency basis.
Subscription plan subscriptions (product, EBA, and cloud) were
2.27 million, a net increase of 371,000 from the third quarter of
fiscal 2018, led by new product subscriptions and 168,000 product
subscriptions that migrated from maintenance plan
subscriptions. Maintenance plan subscriptions were 1.45
million, a net decrease of 244,000 from the third quarter of fiscal
2018, which includes the 168,000 that migrated to product
subscription. Total subscriptions were 3.72 million, a net
increase of 127,000 from the third quarter of fiscal
2018.
Total recurring revenue in the fourth quarter was 93 percent of
total revenue compared to 86 percent of total revenue in the fourth
quarter last year.
Revenue in the Americas was $232
million, an increase of 10 percent compared to the fourth
quarter last year. Revenue in EMEA was $221
million, an increase of 19 percent compared to the fourth
quarter last year as reported, and 20 percent on a constant
currency basis. Revenue in APAC was $100
million, an increase of 23 percent compared to the fourth
quarter last year as reported, and 21 percent on a constant
currency basis.
Financial Highlights for Fiscal 2018*
- Total ARR increased 25 percent as reported, and on a constant
currency basis.
- Total subscriptions increased 20 percent to 3.72 million.
- The base of both subscription plan ARR and subscriptions
surpassed the base of maintenance plan ARR and subscriptions.
- Total GAAP spend increased 1 percent as reported, and on a
constant currency basis. Total non-GAAP spend increased 1 percent
as reported, and was flat on a constant currency basis.
- Total deferred revenue increased approximately 25 percent.
*All numbers are compared to fiscal 2017.
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 first 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 with the first quarter of fiscal 2019, Autodesk is
adopting the new revenue accounting standard, ASC 606.
- We will be applying the modified retrospective transition
method.
- We do not believe the new standard will result in a change in
timing or amount of the recognition of revenue for the majority of
our product subscription offerings and enterprise agreements.
- We will be required to capitalize and amortize sales
commissions under the new standard.
- We do not expect a significant impact on reported expenses for
the full fiscal year, however, the timing of when we recognize the
deferred commissions by quarter will vary compared to our
historical seasonality.
- None of the ASC 606 impacts affect cash flow.
First Quarter
Fiscal 2019
|
|
|
|
Q1 FY19 Guidance
Metrics
|
Q1 FY19 under
ASC
605 (ending April
30, 2018)
|
Q1 FY19 under
ASC
606 (ending April
30, 2018) (1)
|
Revenue (in
millions)
|
$565 -
$575
|
$550 -
$560
|
EPS
GAAP
|
($0.34) -
($0.31)
|
($0.44) -
($0.41)
|
EPS non-GAAP
(2)
|
$0.11 -
$0.14
|
$0.01 -
$0.04
|
|
_______________
|
(1) The move to the
new revenue standard will result in a net reduction to revenue and
EPS of approximately $15 million and $0.10 respectively, compared
to what would have been recognized under ASC 605.
|
(2) Non-GAAP earnings
per diluted share excludes $0.27 related to stock-based
compensation expense, $0.09 related to restructuring and other
facility exit costs, $0.06 related to GAAP-only tax charges, and
$0.03 for the amortization of acquisition-related
intangibles.
|
Full Year Fiscal
2019
|
|
|
FY19 Guidance
Metrics
|
FY19 under ASC
605 (ending January
31, 2019)
|
FY19 under ASC
606 (ending January
31, 2019) (1)
|
Billings (in
millions) (2)
|
$2,720 -
$2,820
|
$2,720 -
$2,820
|
Revenue (in
millions) (3)
|
$2,495 -
$2,545
|
$2,455 -
$2,505
|
GAAP spend growth
(cost of revenue + operating expenses)
|
(2.5%) -
(1.5%)
|
(2.5%) -
(1.5%)
|
Non-GAAP spend
growth (cost of revenue + operating expenses) (4)
|
1 - 2%
|
1 - 2%
|
EPS
GAAP
|
($0.77) -
($0.59)
|
($0.92) -
($0.74)
|
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 will result 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
does not include adjustments for ASC 606.
|
(3) Excluding the
impact of foreign currency exchange rates and hedge gains/losses,
revenue guidance would be $2,420 - $2,470 million under ASC
606.
|
(4) Non-GAAP spend
excludes $244 million related to stock-based compensation expense,
$41 million related to restructuring and other facility exit costs,
and $27 million for the amortization of acquisition-related
intangibles.
|
(5) Non-GAAP earnings
per diluted share excludes $1.12 related to stock-based
compensation expense, $0.26 related to GAAP-only tax charges, $0.19
related to restructuring and other facility exit costs, and $0.12
for the amortization of acquisition-related intangibles.
|
Tax Rates
The recent tax reform legislation in the United States will result in a lower U.S.
annual effective tax rate. From a GAAP perspective, Autodesk
is in a U.S. loss position related to the business model transition
and the recent restructuring. Autodesk's losses and tax
credits in the U.S. have had a full valuation allowance on them
since the second quarter of fiscal 2016. As a result, there
is no impact from U.S. tax reform in our tax provision, other than
a benefit from revaluing certain deferred tax liabilities at the
lower U.S. rate. We will utilize tax attributes that have
previously been fully valued to offset the one-time transition
tax.
From a non-GAAP perspective, Autodesk has eliminated the impact
of the transition tax and re-measurement of deferred tax assets and
liabilities from our tax expense as one-time, non-recurring
expenses. We are still analyzing the full impact of tax
reform but are currently modeling our GAAP annual effective tax
rate at (388) percent for fiscal 2019 and 21 percent for fiscal
2020. We are estimating our non-GAAP annual effective tax
rate at 19 percent in fiscal 2019 and between 17 percent and 18
percent in fiscal 2020 and beyond.
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 fourth 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): Represents
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.
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 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, cloud service offerings, and
enterprise business agreements (EBAs) 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 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 quarter 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
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 in the
paragraphs under "Business Outlook" above, statements regarding ARR
growth acceleration, 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
regarding the impact of, and our expectations regarding, tax reform
legislation and the adoption 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, 2017 and Quarterly Report on Form
10-Q for the fiscal quarter ended October
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.
© 2018 Autodesk, Inc. All rights reserved.
Autodesk,
Inc.
|
|
|
|
|
Condensed
Consolidated Statements of Operations (1)
|
|
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
January 31,
|
|
Fiscal Year
Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(Unaudited)
|
Net
revenue:
|
|
|
|
|
|
|
|
Maintenance
|
$
|
219.8
|
|
|
$
|
268.0
|
|
|
$
|
989.6
|
|
|
$
|
1,103.1
|
|
Subscription
|
293.7
|
|
|
143.4
|
|
|
894.3
|
|
|
443.1
|
|
Total maintenance and subscription revenue
|
513.5
|
|
|
411.4
|
|
|
1,883.9
|
|
|
1,546.2
|
|
License and
other
|
40.3
|
|
|
67.4
|
|
|
172.7
|
|
|
484.8
|
|
Total net
revenue
|
553.8
|
|
|
478.8
|
|
|
2,056.6
|
|
|
2,031.0
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Cost of maintenance
and subscription revenue
|
52.8
|
|
|
51.5
|
|
|
214.4
|
|
|
191.7
|
|
Cost of license and
other revenue
|
16.6
|
|
|
23.4
|
|
|
72.6
|
|
|
110.2
|
|
Amortization of
developed technology
|
3.7
|
|
|
8.0
|
|
|
16.4
|
|
|
40.0
|
|
Total cost of
revenue
|
73.1
|
|
|
82.9
|
|
|
303.4
|
|
|
341.9
|
|
Gross
profit
|
480.7
|
|
|
395.9
|
|
|
1,753.2
|
|
|
1,689.1
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Marketing and
sales
|
301.5
|
|
|
283.6
|
|
|
1,087.3
|
|
|
1,022.5
|
|
Research and
development
|
182.2
|
|
|
187.0
|
|
|
755.5
|
|
|
766.1
|
|
General and
administrative
|
80.1
|
|
|
74.1
|
|
|
305.2
|
|
|
287.8
|
|
Amortization of
purchased intangibles
|
4.9
|
|
|
9.3
|
|
|
20.2
|
|
|
31.8
|
|
Restructuring charges
and other facility exit costs, net
|
93.9
|
|
|
9.0
|
|
|
94.1
|
|
|
80.5
|
|
Total operating
expenses
|
662.6
|
|
|
563.0
|
|
|
2,262.3
|
|
|
2,188.7
|
|
Loss from
operations
|
(181.9)
|
|
|
(167.1)
|
|
|
(509.1)
|
|
|
(499.6)
|
|
Interest and other
expense, net
|
(16.4)
|
|
|
(1.1)
|
|
|
(48.2)
|
|
|
(24.2)
|
|
Loss before income
taxes
|
(198.3)
|
|
|
(168.2)
|
|
|
(557.3)
|
|
|
(523.8)
|
|
Benefit (provision)
for income taxes
|
24.8
|
|
|
(5.2)
|
|
|
(9.6)
|
|
|
(58.3)
|
|
Net loss
|
$
|
(173.5)
|
|
|
$
|
(173.4)
|
|
|
$
|
(566.9)
|
|
|
$
|
(582.1)
|
|
Basic net loss per
share
|
$
|
(0.79)
|
|
|
$
|
(0.78)
|
|
|
$
|
(2.58)
|
|
|
$
|
(2.61)
|
|
Diluted net loss per
share
|
$
|
(0.79)
|
|
|
$
|
(0.78)
|
|
|
$
|
(2.58)
|
|
|
$
|
(2.61)
|
|
Weighted average
shares used in computing basic net loss per share
|
219.1
|
|
|
221.1
|
|
|
219.5
|
|
|
222.7
|
|
Weighted average
shares used in computing diluted net loss per share
|
219.1
|
|
|
221.1
|
|
|
219.5
|
|
|
222.7
|
|
|
_____________________
|
(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)
|
|
|
|
|
|
|
|
|
January 31,
2018
|
|
January 31,
2017
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
1,078.0
|
|
|
$
|
1,213.1
|
|
Marketable
securities
|
245.2
|
|
|
686.8
|
|
Accounts receivable,
net
|
438.2
|
|
|
452.3
|
|
Prepaid expenses and
other current assets
|
116.5
|
|
|
108.4
|
|
Total current
assets
|
1,877.9
|
|
|
2,460.6
|
|
Marketable
securities
|
190.8
|
|
|
306.2
|
|
Computer equipment,
software, furniture and leasehold improvements, net
|
145.0
|
|
|
158.6
|
|
Developed
technologies, net
|
27.1
|
|
|
45.7
|
|
Goodwill
|
1,620.2
|
|
|
1,561.1
|
|
Deferred income
taxes, net
|
81.7
|
|
|
63.9
|
|
Other
assets
|
170.9
|
|
|
202.0
|
|
Total
assets
|
$
|
4,113.6
|
|
|
$
|
4,798.1
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
94.7
|
|
|
$
|
93.5
|
|
Accrued
compensation
|
250.9
|
|
|
238.2
|
|
Accrued income
taxes
|
28.0
|
|
|
50.0
|
|
Deferred
revenue
|
1,551.6
|
|
|
1,270.1
|
|
Current portion of
long-term notes payable, net
|
—
|
|
|
398.7
|
|
Other accrued
liabilities
|
198.0
|
|
|
134.9
|
|
Total current
liabilities
|
2,123.2
|
|
|
2,185.4
|
|
Long-term deferred
revenue
|
403.5
|
|
|
517.9
|
|
Long-term income
taxes payable
|
41.6
|
|
|
39.3
|
|
Long-term deferred
income taxes
|
66.6
|
|
|
91.5
|
|
Long-term notes
payable, net
|
1,586.0
|
|
|
1,092.0
|
|
Other
liabilities
|
148.7
|
|
|
138.4
|
|
Stockholders'
(deficit) equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common stock and
additional paid-in capital
|
1,952.7
|
|
|
1,876.3
|
|
Accumulated other
comprehensive loss
|
(123.8)
|
|
|
(178.5)
|
|
Accumulated
deficit
|
(2,084.9)
|
|
|
(964.2)
|
|
Total stockholders'
(deficit) equity
|
(256.0)
|
|
|
733.6
|
|
Total liabilities and
stockholders' (deficit) equity
|
$
|
4,113.6
|
|
|
$
|
4,798.1
|
|
Autodesk,
Inc.
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
Fiscal Year Ended
January 31,
|
|
2018
|
|
2017
|
|
(Unaudited)
|
Operating
activities:
|
|
|
|
Net loss
|
$
|
(566.9)
|
|
|
$
|
(582.1)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation,
amortization and accretion
|
108.4
|
|
|
139.2
|
|
Stock-based
compensation expense
|
261.4
|
|
|
221.8
|
|
Deferred income
taxes
|
(39.1)
|
|
|
(38.8)
|
|
Restructuring charges
and other facility exit costs, net
|
94.1
|
|
|
80.5
|
|
Other operating
activities
|
7.3
|
|
|
(7.7)
|
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
Accounts
receivable
|
13.3
|
|
|
201.5
|
|
Prepaid expenses and
other current assets
|
(9.9)
|
|
|
(13.5)
|
|
Accounts payable and
accrued liabilities
|
(13.9)
|
|
|
2.7
|
|
Deferred
revenue
|
168.3
|
|
|
267.0
|
|
Accrued income
taxes
|
(22.1)
|
|
|
(100.9)
|
|
Net cash provided by
operating activities
|
0.9
|
|
|
169.7
|
|
Investing
activities:
|
|
|
|
Purchases of
marketable securities
|
(514.0)
|
|
|
(1,867.9)
|
|
Sales of marketable
securities
|
489.0
|
|
|
1,257.7
|
|
Maturities of
marketable securities
|
594.3
|
|
|
1,057.2
|
|
Acquisitions, net of
cash acquired
|
—
|
|
|
(85.2)
|
|
Capital
Expenditures
|
(50.7)
|
|
|
(76.0)
|
|
Other investing
activities
|
(12.2)
|
|
|
(13.8)
|
|
Net cash provided by
investing activities
|
506.4
|
|
|
272.0
|
|
Financing
activities:
|
|
|
|
Proceeds from
issuance of common stock, net of issuance costs
|
94.4
|
|
|
119.6
|
|
Taxes paid related to
net share settlement of equity awards
|
(143.1)
|
|
|
(76.2)
|
|
Repurchase and
retirement of common stock
|
(699.0)
|
|
|
(621.7)
|
|
Proceeds from debt,
net of discount
|
496.9
|
|
|
—
|
|
Repayment of
debt
|
(400.0)
|
|
|
—
|
|
Other financing
activities
|
(5.8)
|
|
|
—
|
|
Net cash used in
financing activities
|
(656.6)
|
|
|
(578.3)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
14.2
|
|
|
(3.3)
|
|
Net decrease in cash
and cash equivalents
|
(135.1)
|
|
|
(139.9)
|
|
Cash and cash
equivalents at beginning of the period
|
1,213.1
|
|
|
1,353.0
|
|
Cash and cash
equivalents at end of the period
|
$
|
1,078.0
|
|
|
$
|
1,213.1
|
|
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
January 31,
|
|
Fiscal Year
Ended
January 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
GAAP cost of
maintenance and subscription revenue
|
$
|
52.8
|
|
|
$
|
51.5
|
|
|
$
|
214.4
|
|
|
$
|
191.7
|
|
Stock-based
compensation expense
|
(3.4)
|
|
|
(2.4)
|
|
|
(11.9)
|
|
|
(8.6)
|
|
Non-GAAP cost of
maintenance and subscription revenue
|
$
|
49.4
|
|
|
$
|
49.1
|
|
|
$
|
202.5
|
|
|
$
|
183.1
|
|
|
|
|
|
|
|
|
|
GAAP cost of license
and other revenue
|
$
|
16.6
|
|
|
$
|
23.4
|
|
|
$
|
72.6
|
|
|
$
|
110.2
|
|
Stock-based
compensation expense
|
(0.9)
|
|
|
(1.4)
|
|
|
(4.0)
|
|
|
(5.5)
|
|
Non-GAAP cost of
license and other revenue
|
$
|
15.7
|
|
|
$
|
22.0
|
|
|
$
|
68.6
|
|
|
$
|
104.7
|
|
|
|
|
|
|
|
|
|
GAAP amortization of
developed technology
|
$
|
3.7
|
|
|
$
|
8.0
|
|
|
$
|
16.4
|
|
|
$
|
40.0
|
|
Amortization of
developed technology
|
(3.7)
|
|
|
(8.0)
|
|
|
(16.4)
|
|
|
(40.0)
|
|
Non-GAAP amortization
of developed technology
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
480.7
|
|
|
$
|
395.9
|
|
|
$
|
1,753.2
|
|
|
$
|
1,689.1
|
|
Stock-based
compensation expense
|
4.3
|
|
|
3.8
|
|
|
15.9
|
|
|
14.1
|
|
Amortization of
developed technology
|
3.7
|
|
|
8.0
|
|
|
16.4
|
|
|
40.0
|
|
Non-GAAP gross
profit
|
$
|
488.7
|
|
|
$
|
407.7
|
|
|
$
|
1,785.5
|
|
|
$
|
1,743.2
|
|
|
|
|
|
|
|
|
|
GAAP marketing and
sales
|
$
|
301.5
|
|
|
$
|
283.6
|
|
|
$
|
1,087.3
|
|
|
$
|
1,022.5
|
|
Stock-based
compensation expense
|
(27.2)
|
|
|
(25.1)
|
|
|
(107.3)
|
|
|
(94.1)
|
|
Non-GAAP marketing
and sales
|
$
|
274.3
|
|
|
$
|
258.5
|
|
|
$
|
980.0
|
|
|
$
|
928.4
|
|
|
|
|
|
|
|
|
|
GAAP research and
development
|
$
|
182.2
|
|
|
$
|
187.0
|
|
|
$
|
755.5
|
|
|
$
|
766.1
|
|
Stock-based
compensation expense
|
(21.2)
|
|
|
(21.3)
|
|
|
(82.9)
|
|
|
(81.3)
|
|
Non-GAAP research and
development
|
$
|
161.0
|
|
|
$
|
165.7
|
|
|
$
|
672.6
|
|
|
$
|
684.8
|
|
|
|
|
|
|
|
|
|
GAAP general and
administrative
|
$
|
80.1
|
|
|
$
|
74.1
|
|
|
$
|
305.2
|
|
|
$
|
287.8
|
|
Stock-based
compensation expense
|
(9.4)
|
|
|
(9.1)
|
|
|
(38.9)
|
|
|
(32.3)
|
|
CEO transition costs
(1)
|
0.2
|
|
|
—
|
|
|
(21.4)
|
|
|
—
|
|
Non-GAAP general and
administrative
|
$
|
70.9
|
|
|
$
|
65.0
|
|
|
$
|
244.9
|
|
|
$
|
255.5
|
|
|
|
|
|
|
|
|
|
GAAP amortization of
purchased intangibles
|
$
|
4.9
|
|
|
$
|
9.3
|
|
|
$
|
20.2
|
|
|
$
|
31.8
|
|
Amortization of
purchased intangibles
|
(4.9)
|
|
|
(9.3)
|
|
|
(20.2)
|
|
|
(31.8)
|
|
Non-GAAP amortization
of purchased intangibles
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
GAAP restructuring
charges and other facility exit costs, net
|
$
|
93.9
|
|
|
$
|
9.0
|
|
|
$
|
94.1
|
|
|
$
|
80.5
|
|
Restructuring charges
and other facility exit costs, net
|
(93.9)
|
|
|
(9.0)
|
|
|
(94.1)
|
|
|
(80.5)
|
|
Non-GAAP
restructuring charges and other facility exit costs, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
662.6
|
|
|
$
|
563.0
|
|
|
$
|
2,262.3
|
|
|
$
|
2,188.7
|
|
Stock-based
compensation expense
|
(57.8)
|
|
|
(55.5)
|
|
|
(229.1)
|
|
|
(207.7)
|
|
Amortization of
purchased intangibles
|
(4.9)
|
|
|
(9.3)
|
|
|
(20.2)
|
|
|
(31.8)
|
|
CEO transition costs
(1)
|
0.2
|
|
|
—
|
|
|
(21.4)
|
|
|
—
|
|
Restructuring charges
and other facility exit costs, net
|
(93.9)
|
|
|
(9.0)
|
|
|
(94.1)
|
|
|
(80.5)
|
|
Non-GAAP operating
expenses
|
$
|
506.2
|
|
|
$
|
489.2
|
|
|
$
|
1,897.5
|
|
|
$
|
1,868.7
|
|
|
|
|
|
|
|
|
|
GAAP Spend
|
$
|
735.7
|
|
|
$
|
645.9
|
|
|
$
|
2,565.7
|
|
|
$
|
2,530.6
|
|
Stock-based
compensation expense
|
(62.1)
|
|
|
(59.3)
|
|
|
(245.0)
|
|
|
(221.8)
|
|
Amortization of
developed technology
|
(3.7)
|
|
|
(8.0)
|
|
|
(16.4)
|
|
|
(40.0)
|
|
Amortization of
purchased intangibles
|
(4.9)
|
|
|
(9.3)
|
|
|
(20.2)
|
|
|
(31.8)
|
|
CEO transition costs
(1)
|
0.2
|
|
|
—
|
|
|
(21.4)
|
|
|
—
|
|
Restructuring charges
and other facility exit costs, net
|
(93.9)
|
|
|
(9.0)
|
|
|
(94.1)
|
|
|
(80.5)
|
|
Non-GAAP
Spend
|
$
|
571.3
|
|
|
$
|
560.3
|
|
|
$
|
2,168.6
|
|
|
$
|
2,156.5
|
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
$
|
(181.9)
|
|
|
$
|
(167.1)
|
|
|
$
|
(509.1)
|
|
|
$
|
(499.6)
|
|
Stock-based
compensation expense
|
62.1
|
|
|
59.3
|
|
|
245.0
|
|
|
221.8
|
|
Amortization of
developed technology
|
3.7
|
|
|
8.0
|
|
|
16.4
|
|
|
40.0
|
|
Amortization of
purchased intangibles
|
4.9
|
|
|
9.3
|
|
|
20.2
|
|
|
31.8
|
|
CEO transition costs
(1)
|
(0.2)
|
|
|
—
|
|
|
21.4
|
|
|
—
|
|
Restructuring charges
and other facility exit costs, net
|
93.9
|
|
|
9.0
|
|
|
94.1
|
|
|
80.5
|
|
Non-GAAP loss from
operations
|
$
|
(17.5)
|
|
|
$
|
(81.5)
|
|
|
$
|
(112.0)
|
|
|
$
|
(125.5)
|
|
|
|
|
|
|
|
|
|
GAAP interest and
other expense, net
|
$
|
(16.4)
|
|
|
$
|
(1.1)
|
|
|
$
|
(48.2)
|
|
|
$
|
(24.2)
|
|
Loss (gain) on
strategic investments and dispositions
|
7.0
|
|
|
0.3
|
|
|
16.5
|
|
|
(0.3)
|
|
Non-GAAP interest and
other expense, net
|
$
|
(9.4)
|
|
|
$
|
(0.8)
|
|
|
$
|
(31.7)
|
|
|
$
|
(24.5)
|
|
|
|
|
|
|
|
|
|
GAAP benefit
(provision) for income taxes
|
$
|
24.8
|
|
|
$
|
(5.2)
|
|
|
$
|
(9.6)
|
|
|
$
|
(58.3)
|
|
Discrete GAAP tax
items
|
(10.5)
|
|
|
(6.7)
|
|
|
(20.7)
|
|
|
(2.7)
|
|
Income tax effect of
non-GAAP adjustments
|
(7.3)
|
|
|
33.3
|
|
|
67.7
|
|
|
100.0
|
|
Non-GAAP benefit for
income tax
|
$
|
7.0
|
|
|
$
|
21.4
|
|
|
$
|
37.4
|
|
|
$
|
39.0
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
$
|
(173.5)
|
|
|
$
|
(173.4)
|
|
|
$
|
(566.9)
|
|
|
$
|
(582.1)
|
|
Stock-based
compensation expense
|
62.1
|
|
|
59.3
|
|
|
245.0
|
|
|
221.8
|
|
Amortization of
developed technology
|
3.7
|
|
|
8.0
|
|
|
16.4
|
|
|
40.0
|
|
Amortization of
purchased intangibles
|
4.9
|
|
|
9.3
|
|
|
20.2
|
|
|
31.8
|
|
CEO transition costs
(1)
|
(0.2)
|
|
|
—
|
|
|
21.4
|
|
|
—
|
|
Restructuring charges
and other facility exit costs, net
|
93.9
|
|
|
9.0
|
|
|
94.1
|
|
|
80.5
|
|
Loss (gain) on
strategic investments and dispositions
|
7.0
|
|
|
0.3
|
|
|
16.5
|
|
|
(0.3)
|
|
Discrete GAAP tax
items
|
(10.5)
|
|
|
(6.7)
|
|
|
(20.7
|
|
|
(2.7)
|
|
Income tax effect of
non-GAAP adjustments
|
(7.3)
|
|
|
33.3
|
|
|
67.7
|
|
|
100.0
|
|
Non-GAAP
net loss
|
$
|
(19.9)
|
|
|
$
|
(60.9)
|
|
|
$
|
(106.3)
|
|
|
$
|
(111.0)
|
|
|
|
|
|
|
|
|
|
GAAP diluted net loss
per share (2)
|
$
|
(0.79)
|
|
|
$
|
(0.78)
|
|
|
$
|
(2.58)
|
|
|
$
|
(2.61)
|
|
Stock-based
compensation expense
|
0.28
|
|
|
0.28
|
|
|
1.11
|
|
|
1.00
|
|
Amortization of
developed technology
|
0.02
|
|
|
0.03
|
|
|
0.08
|
|
|
0.18
|
|
Amortization of
purchased intangibles
|
0.02
|
|
|
0.04
|
|
|
0.09
|
|
|
0.14
|
|
CEO transition costs
(1)
|
—
|
|
|
—
|
|
|
0.09
|
|
|
—
|
|
Restructuring charges
and other facility exit costs, net
|
0.43
|
|
|
0.04
|
|
|
0.43
|
|
|
0.35
|
|
Loss (gain) on
strategic investments and dispositions
|
0.03
|
|
|
—
|
|
|
0.08
|
|
|
—
|
|
Discrete GAAP tax
items
|
(0.05)
|
|
|
(0.04)
|
|
|
(0.09)
|
|
|
(0.01)
|
|
Income tax effect of
non-GAAP adjustments
|
(0.03)
|
|
|
0.15
|
|
|
0.31
|
|
|
0.45
|
|
Non-GAAP diluted net
loss per share (2)
|
$
|
(0.09)
|
|
|
$
|
(0.28)
|
|
|
$
|
(0.48)
|
|
|
$
|
(0.50)
|
|
|
|
|
|
|
|
|
|
GAAP diluted shares
used in per share calculation
|
219.1
|
|
|
221.1
|
|
|
219.5
|
|
|
222.7
|
|
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
|
219.1
|
|
|
221.1
|
|
|
219.5
|
|
|
222.7
|
|
|
____________________
|
(1)
|
CEO transition costs
include stock-based compensation of ($0.2) million and $16.4
million related to the acceleration of eligible stock awards for
the three months and fiscal year ended January 31, 2018,
respectively. 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
were 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.