SAN RAFAEL, Calif.,
Aug. 24, 2017 /PRNewswire/ --
Autodesk, Inc. (NASDAQ: ADSK) today reported financial results for
the second quarter of fiscal 2018.
Second Quarter Fiscal 2018
- Subscription plan (formerly known as new model) annualized
recurring revenue (ARR) was $784
million and increased 94 percent compared to the second
quarter last year as reported, and 98 percent on a constant
currency basis.
- Total ARR was $1.83 billion, an
increase of 21 percent compared to the second quarter last year as
reported, and 23 percent on a constant currency basis.
- Subscription plan subscriptions increased 270,000 from the
first quarter of fiscal 2018 to 1.59 million at the end of the
second quarter. Subscription plan subscriptions benefited
from 63,000 maintenance subscribers that converted to product
subscription under the maintenance-to-subscription program.
- Total subscriptions increased 153,000 from the first quarter of
fiscal 2018 to 3.44 million at the end of the second quarter.
- Deferred revenue increased 17 percent to $1.78 billion, compared to $1.52 billion in the second quarter last
year. Unbilled deferred revenue at the end of the second
quarter was $63 million.
- Revenue was $502 million, a
decrease of 9 percent compared to the second quarter last year as
reported, and 8 percent on a constant currency basis. During
Autodesk's business model transition, revenue is negatively
impacted as more revenue is recognized ratably rather than up front
and as new offerings generally have a lower initial purchase
price.
- Total GAAP spend (cost of revenue plus operating expenses) was
$609 million, a decrease of 1 percent
compared to the second quarter last year.
- Total non-GAAP spend was $531
million, an increase of 1 percent compared to the second
quarter last year. A reconciliation of GAAP to non-GAAP
results is provided in the accompanying tables.
- GAAP diluted net loss per share was $(0.66), compared to GAAP diluted net loss per
share of $(0.44) in the second
quarter last year.
- Non-GAAP diluted net loss per share was $(0.11), compared to non-GAAP diluted net income
per share of $0.05 in the second
quarter last year.
"Once again, we experienced broad-based strength across all
subscription plan types and geographies," said Andrew Anagnost, Autodesk president and
CEO. "We're seeing positive trends in ARR growth, especially
with products that were first to move to subscription-only.
These products are further into the transition and have ARR growth
rates well above our current average, offering additional proof
that our model transition is working. Subscription is
delivering a better experience to our customers, expanding our
market opportunities in construction and manufacturing, and
increasing the customer lifetime value for Autodesk.
"During the second quarter we started offering a simple path for
maintenance customers to move to subscription," continued
Anagnost. "While the program didn't begin until midway
through the quarter, it is off to a great start with nearly
one-in-four renewal opportunities moving to subscription."
"Strong execution across the board and a steady macro operating
environment led to another quarter of better than expected
results," said Scott Herren,
Autodesk CFO. "We've been able to achieve these results while
diligently controlling costs. Overall, our first half results
increase our confidence that the transition is working for our
customers and partners. It also sets us up for success for
the rest of the year and reinforces our conviction in our FY 20
targets."
Second Quarter Operational Overview
Subscription plan ARR was $784
million and increased 94 percent compared to the second
quarter last year as reported, and 98 percent on a constant
currency basis. Subscription plan ARR includes $8 million related to the
maintenance-to-subscription program. Maintenance plan ARR was
$1.05 billion and decreased 5 percent
compared to the second quarter last year as reported, and on a
constant currency basis. Total ARR for the second quarter
increased 21 percent to $1.83 billion
compared to the second quarter last year as reported, and 23
percent on a constant currency basis. Similar to the prior
three quarters, second quarter total ARR growth was impacted by the
allocation of existing marketing development funds (MDF). MDF
is recorded as contra revenue and historically was predominantly
allocated against license revenue. With the end of sale of
perpetual licenses, MDF is allocated against recurring revenue,
negatively impacting subscription plan ARR growth by 5 percentage
points, maintenance plan ARR growth by 2 percentage points, and
total ARR growth by 3 percentage points.
Subscription plan subscriptions (product, EBA, and cloud) were
1.59 million, a net increase of 270,000 from the first quarter of
fiscal 2018, led by new product subscriptions and 63,000 product
subscriptions that migrated from maintenance plan
subscriptions. Maintenance plan subscriptions were 1.85
million, a net decrease of 117,000 from the first quarter of fiscal
2018, which includes the 63,000 that migrated to product
subscription. Total subscriptions were 3.44 million, a net
increase of 153,000 from the first quarter of fiscal 2018.
Total recurring revenue in the second quarter was 91 percent of
total revenue compared to 69 percent of total revenue in the second
quarter last year.
As a reminder, during the business model transition, revenue is
negatively impacted as more revenue is recognized ratably rather
than up front and as new product offerings generally have a lower
initial purchase price. As part of the business model
transition, Autodesk discontinued new perpetual license sales for
most individual products at the end of the fourth quarter of fiscal
2016 and for suites at the end of the second quarter of fiscal
2017.
Revenue in the Americas was $214
million, a decrease of 7 percent compared to the second
quarter last year as reported, and on a constant currency
basis. Revenue in EMEA was $199
million, a decrease of 10 percent compared to the second
quarter last year as reported, and 7 percent on a constant currency
basis. Revenue in APAC was $89
million, a decrease of 12 percent compared to the second
quarter last year as reported, and 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 third 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.
|
Third Quarter
Fiscal 2018
|
|
Q3 FY18 Guidance
Metrics
|
Q3 FY18
(ending
October 31, 2017)
|
Revenue (in
millions)
|
$505 -
$515
|
EPS
GAAP
|
($0.64) -
($0.58)
|
EPS non-GAAP
(1)
|
($0.16) -
($0.12)
|
|
|
(1) Non-GAAP earnings
per diluted share excludes $0.29 related to stock-based
compensation expense, between $0.15 and $0.13 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)
|
$2,030 -
$2,050
|
GAAP spend growth
(cost of revenue plus operating expenses)
|
Approx.
(2%)
|
Non-GAAP spend
growth (cost of revenue plus operating expenses) (2)
|
Approx.
flat
|
EPS
GAAP
|
($2.55) -
($2.44)
|
EPS non-GAAP
(3)
|
($0.61) -
($0.54)
|
Net subscription
additions
|
625,000 -
675,000
|
Total
ARR
|
24% -26%
|
|
(1) Excluding the
impact of foreign currency exchange rates and hedge gains/losses,
revenue guidance would be $2.035 - 2.055 billion.
|
|
(2) Non-GAAP spend
excludes $243 million related to stock-based compensation expense,
$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 $1.11 related to stock-based
compensation expense, between $0.52 and $0.48 related to GAAP-only
tax charges, $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 third quarter and full year fiscal 2018 outlook assume a
projected annual effective tax rate of (14) 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 in the
paragraphs under "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, 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, including the
introduction of additional ratable revenue streams and our
continuing efforts to attract customers to our cloud-based
offerings and expenses related to the transition of our business
model; 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; failure to control our expenses; our
performance in particular geographies, including emerging
economies; the ability of governments around the world to meet
their financial and debt obligations, and finance infrastructure
projects; weak or negative growth in the industries we serve;
slowing momentum in subscription billings or revenues; 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 April 30,
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
July 31,
|
|
Six Months
Ended
July 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Unaudited)
|
Net
revenue:
|
|
|
|
|
|
|
|
Maintenance
|
$
|
261.8
|
|
|
$
|
277.5
|
|
|
$
|
525.4
|
|
|
$
|
561.9
|
|
Subscription
|
196.1
|
|
|
101.8
|
|
|
369.5
|
|
|
187.3
|
|
Total maintenance and subscription revenue
|
457.9
|
|
|
379.3
|
|
|
894.9
|
|
|
749.2
|
|
License and
other
|
43.9
|
|
|
171.4
|
|
|
92.6
|
|
|
313.4
|
|
Total net
revenue
|
501.8
|
|
|
550.7
|
|
|
987.5
|
|
|
1,062.6
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Cost of maintenance
and subscription revenue
|
52.8
|
|
|
46.8
|
|
|
107.7
|
|
|
93.4
|
|
Cost of license and
other revenue
|
17.8
|
|
|
27.6
|
|
|
36.4
|
|
|
62.5
|
|
Amortization of
developed technology
|
4.0
|
|
|
10.7
|
|
|
8.7
|
|
|
21.6
|
|
Total cost of
revenue
|
74.6
|
|
|
85.1
|
|
|
152.8
|
|
|
177.5
|
|
Gross
profit
|
427.2
|
|
|
465.6
|
|
|
834.7
|
|
|
885.1
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Marketing and
sales
|
257.6
|
|
|
243.1
|
|
|
513.3
|
|
|
483.9
|
|
Research and
development
|
193.8
|
|
|
193.0
|
|
|
381.5
|
|
|
386.5
|
|
General and
administrative
|
78.0
|
|
|
68.6
|
|
|
156.3
|
|
|
143.3
|
|
Amortization of
purchased intangibles
|
4.9
|
|
|
7.8
|
|
|
10.6
|
|
|
15.7
|
|
Restructuring
(benefits) charges and other facility exit costs, net
|
0.5
|
|
|
16.0
|
|
|
0.2
|
|
|
68.3
|
|
Total operating
expenses
|
534.8
|
|
|
528.5
|
|
|
1,061.9
|
|
|
1,097.7
|
|
Loss from
operations
|
(107.6)
|
|
|
(62.9)
|
|
|
(227.2)
|
|
|
(212.6)
|
|
Interest and other
expense, net
|
(18.8)
|
|
|
(10.1)
|
|
|
(20.6)
|
|
|
(13.7)
|
|
Loss before income
taxes
|
(126.4)
|
|
|
(73.0)
|
|
|
(247.8)
|
|
|
(226.3)
|
|
Provision for income
taxes
|
(17.6)
|
|
|
(25.2)
|
|
|
(25.8)
|
|
|
(39.6)
|
|
Net loss
|
$
|
(144.0)
|
|
|
$
|
(98.2)
|
|
|
$
|
(273.6)
|
|
|
$
|
(265.9)
|
|
Basic net loss per
share
|
$
|
(0.66)
|
|
|
$
|
(0.44)
|
|
|
$
|
(1.25)
|
|
|
$
|
(1.19)
|
|
Diluted net loss per
share
|
$
|
(0.66)
|
|
|
$
|
(0.44)
|
|
|
$
|
(1.25)
|
|
|
$
|
(1.19)
|
|
Weighted average
shares used in computing basic net loss per share
|
219.5
|
|
|
223.2
|
|
|
219.7
|
|
|
223.8
|
|
Weighted average
shares used in computing diluted net loss per share
|
219.5
|
|
|
223.2
|
|
|
219.7
|
|
|
223.8
|
|
|
(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)
|
|
|
|
|
|
July 31,
2017
|
|
January 31,
2017
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
1,174.1
|
|
|
$
|
1,213.1
|
|
Marketable
securities
|
533.6
|
|
|
686.8
|
|
Accounts receivable,
net
|
265.6
|
|
|
452.3
|
|
Prepaid expenses and
other current assets
|
110.0
|
|
|
108.4
|
|
Total current
assets
|
2,083.3
|
|
|
2,460.6
|
|
Marketable
securities
|
236.0
|
|
|
306.2
|
|
Computer equipment,
software, furniture and leasehold improvements, net
|
153.0
|
|
|
158.6
|
|
Developed
technologies, net
|
34.0
|
|
|
45.7
|
|
Goodwill
|
1,588.6
|
|
|
1,561.1
|
|
Deferred income
taxes, net
|
66.2
|
|
|
63.9
|
|
Other
assets
|
192.9
|
|
|
202.0
|
|
Total
assets
|
$
|
4,354.0
|
|
|
$
|
4,798.1
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
93.0
|
|
|
$
|
93.5
|
|
Accrued
compensation
|
161.7
|
|
|
238.2
|
|
Accrued income
taxes
|
21.3
|
|
|
50.0
|
|
Deferred
revenue
|
1,308.5
|
|
|
1,270.1
|
|
Current portion of
long-term notes payable, net
|
—
|
|
|
398.7
|
|
Other accrued
liabilities
|
117.2
|
|
|
134.9
|
|
Total current
liabilities
|
1,701.7
|
|
|
2,185.4
|
|
Long-term deferred
revenue
|
467.5
|
|
|
517.9
|
|
Long-term income
taxes payable
|
33.2
|
|
|
39.3
|
|
Long-term deferred
income taxes
|
100.9
|
|
|
91.5
|
|
Long-term notes
payable, net
|
1,584.9
|
|
|
1,092.0
|
|
Other
liabilities
|
150.3
|
|
|
138.4
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common stock and
additional paid-in capital
|
1,934.8
|
|
|
1,876.3
|
|
Accumulated other
comprehensive loss
|
(152.9)
|
|
|
(178.5)
|
|
Accumulated
deficit
|
(1,466.4)
|
|
|
(964.2)
|
|
Total stockholders'
equity
|
315.5
|
|
|
733.6
|
|
Total liabilities and
stockholders' equity
|
$
|
4,354.0
|
|
|
$
|
4,798.1
|
|
|
|
|
|
|
|
|
|
Autodesk,
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
millions)
|
|
|
|
|
|
Six Months Ended
July 31,
|
|
2017
|
|
2016
|
|
(Unaudited)
|
Operating
activities:
|
|
|
|
Net loss
|
$
|
(273.6)
|
|
|
$
|
(265.9)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
Depreciation,
amortization and accretion
|
56.8
|
|
|
70.4
|
|
Stock-based
compensation expense
|
134.4
|
|
|
105.9
|
|
Deferred income
taxes
|
5.8
|
|
|
(9.2)
|
|
Restructuring charges
and other facility exit costs, net
|
0.2
|
|
|
68.3
|
|
Other operating
activities
|
7.7
|
|
|
(6.2)
|
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
Accounts
receivable
|
185.5
|
|
|
346.9
|
|
Prepaid expenses and
other current assets
|
(2.4)
|
|
|
(23.3)
|
|
Accounts payable and
accrued liabilities
|
(95.8)
|
|
|
(44.6)
|
|
Deferred
revenue
|
(9.9)
|
|
|
(1.4)
|
|
Accrued income
taxes
|
(36.0)
|
|
|
(94.5)
|
|
Net cash (used in)
provided by operating activities
|
(27.3)
|
|
|
146.4
|
|
Investing
activities:
|
|
|
|
Purchases of
marketable securities
|
(299.7)
|
|
|
(810.9)
|
|
Sales of marketable
securities
|
110.8
|
|
|
354.7
|
|
Maturities of
marketable securities
|
420.3
|
|
|
791.3
|
|
Capital
expenditures
|
(26.4)
|
|
|
(42.6)
|
|
Acquisitions, net of
cash acquired
|
—
|
|
|
(85.2)
|
|
Other investing
activities
|
(4.3)
|
|
|
(6.7)
|
|
Net cash provided by
investing activities
|
200.7
|
|
|
200.6
|
|
Financing
activities:
|
|
|
|
Proceeds from
issuance of common stock, net of issuance costs
|
55.9
|
|
|
54.2
|
|
Taxes paid related to
net share settlement of equity awards
|
(49.8)
|
|
|
(19.9)
|
|
Repurchase and
retirement of common stock
|
(315.2)
|
|
|
(270.0)
|
|
Proceeds from debt,
net of discount
|
496.9
|
|
|
—
|
|
Repayment of
debt
|
(400.0)
|
|
|
—
|
|
Other financing
activities
|
(5.8)
|
|
|
—
|
|
Net cash used in
financing activities
|
(218.0)
|
|
|
(235.7)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
5.6
|
|
|
3.0
|
|
Net (decrease)
increase in cash and cash equivalents
|
(39.0)
|
|
|
114.3
|
|
Cash and cash
equivalents at beginning of the period
|
1,213.1
|
|
|
1,353.0
|
|
Cash and cash
equivalents at end of the period
|
$
|
1,174.1
|
|
|
$
|
1,467.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
July 31,
|
|
Six Months Ended
July 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
GAAP cost of
maintenance and subscription revenue
|
$
|
52.8
|
|
|
$
|
46.8
|
|
|
$
|
107.7
|
|
|
$
|
93.4
|
|
Stock-based
compensation expense
|
(2.8)
|
|
|
(2.0)
|
|
|
(5.6)
|
|
|
(4.0)
|
|
Non-GAAP cost of
maintenance and subscription revenue
|
$
|
50.0
|
|
|
$
|
44.8
|
|
|
$
|
102.1
|
|
|
$
|
89.4
|
|
|
|
|
|
|
|
|
|
GAAP cost of license
and other revenue
|
$
|
17.8
|
|
|
$
|
27.6
|
|
|
$
|
36.4
|
|
|
$
|
62.5
|
|
Stock-based
compensation expense
|
(1.0)
|
|
|
(1.4)
|
|
|
(2.1)
|
|
|
(2.8)
|
|
Non-GAAP cost of
license and other revenue
|
$
|
16.8
|
|
|
$
|
26.2
|
|
|
$
|
34.3
|
|
|
$
|
59.7
|
|
|
|
|
|
|
|
|
|
GAAP amortization of
developed technology
|
$
|
4.0
|
|
|
$
|
10.7
|
|
|
$
|
8.7
|
|
|
$
|
21.6
|
|
Amortization of
developed technology
|
(4.0)
|
|
|
(10.7)
|
|
|
(8.7)
|
|
|
(21.6)
|
|
Non-GAAP amortization
of developed technology
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
427.2
|
|
|
$
|
465.6
|
|
|
$
|
834.7
|
|
|
$
|
885.1
|
|
Stock-based
compensation expense
|
3.8
|
|
|
3.4
|
|
|
7.7
|
|
|
6.8
|
|
Amortization of
developed technology
|
4.0
|
|
|
10.7
|
|
|
8.7
|
|
|
21.6
|
|
Non-GAAP gross
profit
|
$
|
435.0
|
|
|
$
|
479.7
|
|
|
$
|
851.1
|
|
|
$
|
913.5
|
|
|
|
|
|
|
|
|
|
GAAP marketing and
sales
|
$
|
257.6
|
|
|
$
|
243.1
|
|
|
$
|
513.3
|
|
|
$
|
483.9
|
|
Stock-based
compensation expense
|
(26.0)
|
|
|
(23.3)
|
|
|
(52.4)
|
|
|
(44.8)
|
|
Non-GAAP marketing
and sales
|
$
|
231.6
|
|
|
$
|
219.8
|
|
|
$
|
460.9
|
|
|
$
|
439.1
|
|
|
|
|
|
|
|
|
|
GAAP research and
development
|
$
|
193.8
|
|
|
$
|
193.0
|
|
|
$
|
381.5
|
|
|
$
|
386.5
|
|
Stock-based
compensation expense
|
(20.4)
|
|
|
(20.2)
|
|
|
(41.6)
|
|
|
(39.1)
|
|
Non-GAAP research and
development
|
$
|
173.4
|
|
|
$
|
172.8
|
|
|
$
|
339.9
|
|
|
$
|
347.4
|
|
|
|
|
|
|
|
|
|
GAAP general and
administrative
|
$
|
78.0
|
|
|
$
|
68.6
|
|
|
$
|
156.3
|
|
|
$
|
143.3
|
|
Stock-based
compensation expense
|
(8.6)
|
|
|
(7.4)
|
|
|
(16.1)
|
|
|
(15.2)
|
|
CEO transition costs
(1)
|
(10.6)
|
|
|
$
|
—
|
|
|
(21.6)
|
|
|
$
|
—
|
|
Non-GAAP general and
administrative
|
$
|
58.8
|
|
|
$
|
61.2
|
|
|
$
|
118.6
|
|
|
$
|
128.1
|
|
|
|
|
|
|
|
|
|
GAAP amortization of
purchased intangibles
|
$
|
4.9
|
|
|
$
|
7.8
|
|
|
$
|
10.6
|
|
|
$
|
15.7
|
|
Amortization of
purchased intangibles
|
(4.9)
|
|
|
(7.8)
|
|
|
(10.6)
|
|
|
(15.7)
|
|
Non-GAAP amortization
of purchased intangibles
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
GAAP restructuring
(benefits) charges and other facility exit costs, net
|
$
|
0.5
|
|
|
$
|
16.0
|
|
|
$
|
0.2
|
|
|
$
|
68.3
|
|
Restructuring
(benefits) charges and other facility exit costs, net
|
(0.5)
|
|
|
(16.0)
|
|
|
(0.2)
|
|
|
(68.3)
|
|
Non-GAAP
restructuring (benefits) charges and other facility exit costs,
net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
534.8
|
|
|
$
|
528.5
|
|
|
$
|
1,061.9
|
|
|
$
|
1,097.7
|
|
Stock-based
compensation expense
|
(55.0)
|
|
|
(50.9)
|
|
|
(110.1)
|
|
|
(99.1)
|
|
Amortization of
purchased intangibles
|
(4.9)
|
|
|
(7.8)
|
|
|
(10.6)
|
|
|
(15.7)
|
|
CEO transition costs
(1)
|
(10.6)
|
|
|
—
|
|
|
(21.6)
|
|
|
—
|
|
Restructuring
(benefits) charges and other facility exit costs, net
|
(0.5)
|
|
|
(16.0)
|
|
|
(0.2)
|
|
|
(68.3)
|
|
Non-GAAP operating
expenses
|
$
|
463.8
|
|
|
$
|
453.8
|
|
|
$
|
919.4
|
|
|
$
|
914.6
|
|
|
|
|
|
|
|
|
|
GAAP Spend
|
$
|
609.4
|
|
|
$
|
613.6
|
|
|
$
|
1,214.7
|
|
|
$
|
1,275.2
|
|
Stock-based
compensation expense
|
(58.8)
|
|
|
(54.3)
|
|
|
(117.8)
|
|
|
(105.9)
|
|
Amortization of
developed technology
|
(4.0)
|
|
|
(10.7)
|
|
|
(8.7)
|
|
|
(21.6)
|
|
Amortization of
purchased intangibles
|
(4.9)
|
|
|
(7.8)
|
|
|
(10.6)
|
|
|
(15.7)
|
|
CEO transition costs
(1)
|
(10.6)
|
|
|
—
|
|
|
(21.6)
|
|
|
—
|
|
Restructuring
(benefits) charges and other facility exit costs, net
|
(0.5)
|
|
|
(16.0)
|
|
|
(0.2)
|
|
|
(68.3)
|
|
Non-GAAP
Spend
|
$
|
530.6
|
|
|
$
|
524.8
|
|
|
$
|
1,055.8
|
|
|
$
|
1,063.7
|
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
$
|
(107.6)
|
|
|
$
|
(62.9)
|
|
|
$
|
(227.2)
|
|
|
$
|
(212.6)
|
|
Stock-based
compensation expense
|
58.8
|
|
|
54.3
|
|
|
117.8
|
|
|
105.9
|
|
Amortization of
developed technology
|
4.0
|
|
|
10.7
|
|
|
8.7
|
|
|
21.6
|
|
Amortization of
purchased intangibles
|
4.9
|
|
|
7.8
|
|
|
10.6
|
|
|
15.7
|
|
CEO transition costs
(1)
|
10.6
|
|
|
—
|
|
|
21.6
|
|
|
—
|
|
Restructuring
(benefits) charges and other facility exit costs, net
|
0.5
|
|
|
16.0
|
|
|
0.2
|
|
|
68.3
|
|
Non-GAAP (loss)
income from operations
|
$
|
(28.8)
|
|
|
$
|
25.9
|
|
|
$
|
(68.3)
|
|
|
$
|
(1.1)
|
|
|
|
|
|
|
|
|
|
GAAP interest and
other expense, net
|
$
|
(18.8)
|
|
|
$
|
(10.1)
|
|
|
$
|
(20.6)
|
|
|
$
|
(13.7)
|
|
Loss (gain) on
strategic investments and dispositions
|
13.5
|
|
|
0.3
|
|
|
7.8
|
|
|
(0.2)
|
|
Non-GAAP interest and
other expense, net
|
$
|
(5.3)
|
|
|
$
|
(9.8)
|
|
|
$
|
(12.8)
|
|
|
$
|
(13.9)
|
|
|
|
|
|
|
|
|
|
GAAP provision for
income taxes
|
$
|
(17.6)
|
|
|
$
|
(25.2)
|
|
|
$
|
(25.8)
|
|
|
$
|
(39.6)
|
|
Discrete GAAP tax
items
|
(0.1)
|
|
|
14.9
|
|
|
(7.7)
|
|
|
13.0
|
|
Income tax effect of
non-GAAP adjustments
|
26.6
|
|
|
6.1
|
|
|
54.6
|
|
|
30.5
|
|
Non-GAAP benefit
(provision) for income tax
|
$
|
8.9
|
|
|
$
|
(4.2)
|
|
|
$
|
21.1
|
|
|
$
|
3.9
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
$
|
(144.0)
|
|
|
$
|
(98.2)
|
|
|
$
|
(273.6)
|
|
|
$
|
(265.9)
|
|
Stock-based
compensation expense
|
58.8
|
|
|
54.3
|
|
|
117.8
|
|
|
105.9
|
|
Amortization of
developed technology
|
4.0
|
|
|
10.7
|
|
|
8.7
|
|
|
21.6
|
|
Amortization of
purchased intangibles
|
4.9
|
|
|
7.8
|
|
|
10.6
|
|
|
15.7
|
|
CEO transition costs
(1)
|
10.6
|
|
|
—
|
|
|
21.6
|
|
|
—
|
|
Restructuring
(benefits) charges and other facility exit costs, net
|
0.5
|
|
|
16.0
|
|
|
0.2
|
|
|
68.3
|
|
Loss (gain) on
strategic investments and dispositions
|
13.5
|
|
|
0.3
|
|
|
7.8
|
|
|
(0.2)
|
|
Discrete GAAP tax
items
|
(0.1)
|
|
|
14.9
|
|
|
(7.7)
|
|
|
13.0
|
|
Income tax effect of
non-GAAP adjustments
|
26.6
|
|
|
6.1
|
|
|
54.6
|
|
|
30.5
|
|
Non-GAAP net (loss)
income
|
$
|
(25.2)
|
|
|
$
|
11.9
|
|
|
$
|
(60.0)
|
|
|
$
|
(11.1)
|
|
|
|
|
|
|
|
|
|
GAAP diluted net loss
per share (2)
|
$
|
(0.66)
|
|
|
$
|
(0.44)
|
|
|
$
|
(1.25)
|
|
|
$
|
(1.19)
|
|
Stock-based
compensation expense
|
0.27
|
|
|
0.24
|
|
|
0.54
|
|
|
0.47
|
|
Amortization of
developed technology
|
0.02
|
|
|
0.05
|
|
|
0.04
|
|
|
0.10
|
|
Amortization of
purchased intangibles
|
0.02
|
|
|
0.03
|
|
|
0.05
|
|
|
0.07
|
|
CEO transition costs
(1)
|
0.05
|
|
|
—
|
|
|
0.09
|
|
|
—
|
|
Restructuring
(benefits) charges and other facility exit costs, net
|
—
|
|
|
0.07
|
|
|
—
|
|
|
0.30
|
|
Loss (gain) on
strategic investments and dispositions
|
0.07
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
Discrete GAAP tax
items
|
—
|
|
|
0.07
|
|
|
(0.03)
|
|
|
0.06
|
|
Income tax effect of
non-GAAP adjustments
|
0.12
|
|
|
0.03
|
|
|
0.25
|
|
|
0.14
|
|
Non-GAAP diluted net
(loss) income per share (2)
|
$
|
(0.11)
|
|
|
$
|
0.05
|
|
|
$
|
(0.27)
|
|
|
$
|
(0.05)
|
|
|
|
|
|
|
|
|
|
GAAP diluted shares
used in per share calculation
|
219.5
|
|
|
223.2
|
|
|
219.7
|
|
|
223.8
|
|
Shares included in
non-GAAP net income per share, but excluded from GAAP net loss per
share as they would have been anti-dilutive
|
—
|
|
|
4.2
|
|
|
—
|
|
|
—
|
|
Non-GAAP diluted
weighted average shares used in per share calculation
|
219.5
|
|
|
227.4
|
|
|
219.7
|
|
|
223.8
|
|
|
(1)
|
CEO transition costs
include stock-based compensation of $8.8 million and $16.6 million
related to the acceleration of eligible stock awards in the three
and six months ended July 31, 2017, 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) income per
share was computed independently for each of the periods presented;
therefore the sum of the net (loss) income per share amount for the
quarters may not equal the total for the year.
|
|
|
|
|
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SOURCE Autodesk, Inc.