Autodesk Reports Fourth Quarter Financial Results
Strong New Model Subscriptions and ARR Growth; Business Model Transition On Track
Fourth Quarter Fiscal 2016
- Total subscriptions increased by approximately 109,000 from the third quarter of fiscal 2016 to 2.58 million at the end of the fourth quarter. New model subscriptions (Desktop, enterprise flexible license, and cloud subscription) increased by approximately 62,000 from the third quarter of fiscal 2016 to 427,000.
-
Total annualized recurring revenue (ARR) was
$1.38 billion , an increase of 10 percent compared to the fourth quarter last year as reported and 12 percent on a constant currency basis. New model ARR was$255 million and increased 68 percent compared to the fourth quarter last year as reported, and 74 percent on a constant currency basis. -
Deferred revenue increased 31 percent to
$1.52 billion , compared to$1.16 billion in the fourth quarter last year. - Total billings increased 15 percent compared to the fourth quarter last year as reported and 23 percent on a constant currency basis.
-
Revenue was
$648 million , a decrease of 2 percent compared to the fourth quarter last year as reported and an increase of 3 percent on a constant currency basis. -
Total GAAP spend (cost of revenue plus operating expenses) was
$658 million , an increase of 1 percent compared to the fourth quarter last year. -
Total non-GAAP spend was
$582 million , flat compared to the fourth quarter last year. A reconciliation of GAAP to non-GAAP results is provided in the accompanying tables. - GAAP operating margin was (1) percent, compared to 2 percent in the fourth quarter last year.
- Non-GAAP operating margin was 10 percent, compared to 13 percent in the fourth quarter last year.
-
GAAP diluted net loss per share was
$(0.15) . GAAP diluted net income per share was$0.05 in the fourth quarter last year. -
Non-GAAP diluted net income per share was
$0.21 , compared to$0.25 in the fourth quarter last year. -
Cash flow from operating activities was
$170 million , compared to$257 million in the fourth quarter last year.
"We had a terrific fourth quarter and our results demonstrate that our
business model transition is working. Broad-based demand also led to
better than expected subscription additions in the fourth quarter with
new model offerings representing well over half of the subscriptions,"
said Carl Bass,
Bass continued, “We’re starting fiscal 2017 from a position of strength. An increasing number of designers and engineers are subscribing to Autodesk’s portfolio and our recent restructuring allows us to accelerate investments in the transition while simultaneously reducing our spend growth. Looking forward, fiscal 2017 will be the most unique in the company’s history as we transition from selling perpetual licenses to subscriptions. The business model transition is broadening our addressable market and advancing our market leadership position. As such, we remain confident in our ability to achieve our long-term targets and ultimately drive long-term value creation for our shareholders with a much more predictable and profitable business.”
Fourth Quarter Operational Overview
Total subscriptions were 2.58 million, an increase of approximately 109,000 from the third quarter of fiscal 2016. New model subscriptions (Desktop, enterprise flexible license, and cloud subscription) were 427,000, an increase of 62,000 from the third quarter of fiscal 2016. The increase in new model subscriptions was led by Desktop subscriptions. Maintenance subscriptions were 2.15 million, an increase of 47,000 from the third quarter of fiscal 2016.
Total ARR for the fourth quarter increased 10 percent to
Revenue in the
Revenue from the Architecture, Engineering and Construction business
segment was
Revenue from Flagship products was
Financial Highlights for Fiscal 2016*
- Total subscriptions increased by approximately 345,000 to 2.58 million.
- New model subscriptions increased 94 percent and comprised 60 percent of the subscription additions.
- Total ARR increased 10 percent as reported and 12 percent on a constant currency basis.
- New model ARR increased 68 percent as reported and 74 percent on a constant currency basis.
-
Total deferred revenue increased 31 percent to
$1.52 billion . - Total billings increased 5 percent as reported and 11 percent on a constant currency basis.
-
Revenue was flat at
$2.50 billion as reported and increased 4 percent on a constant currency basis.
*All numbers are compared to fiscal 2015.
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."
First Quarter Fiscal 2017
| Q1 FY17 Guidance Metrics | Q1 FY17 (ending April 30, 2016) | |||
| Revenue (in millions) | $500 - $520 | |||
| EPS GAAP |
($0.98) - ($0.89) |
|||
| EPS Non-GAAP (1) | ($0.17) - ($0.12) |
_______________
(1) Non-GAAP earnings per diluted share exclude
Full Year Fiscal 2017
| FY17 Guidance Metrics | FY17 (ending January 31, 2017) | |||
| Revenue (in millions) (1) | $1,950 - $2,050 | |||
| GAAP Spend (cost of revenue plus operating expenses) | 3% - 4% | |||
| Non-GAAP Spend (cost of revenue plus operating expenses) (2) | (1%) - flat | |||
| EPS GAAP |
($3.32) - ($2.91) |
|||
| EPS Non-GAAP (3) | ($0.85) - ($0.60) | |||
| Net Subscription Additions | 475,000 - 525,000 |
_______________
(1) Excluding the impact of foreign currency rates and hedge
gains/losses revenue guidance would be
(2) Non-GAAP spend excludes
(3) Non-GAAP earnings per diluted share excludes
The first quarter and full year fiscal 2017 outlook assume a projected annual effective tax rate of (11) percent and 36.5 percent for GAAP and non-GAAP results, respectively.
Earnings Conference Call and Webcast
A replay of the broadcast will be available at
Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including statements in the paragraphs under “Business Outlook” above, statements regarding the impacts and results of our business model transition, expectations regarding the transition of product offerings to subscription, our long-term financial goals, statements regarding the impact of our restructuring and other statements regarding our strategies, market and products positions, performance, and results. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: failure to maintain our revenue growth and profitability; failure to successfully manage transitions to new business models and markets, including the introduction of additional ratable revenue streams and our continuing efforts to attract customers to our cloud-based offerings and expenses related to the transition of our business model; 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; 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 maintain cost reductions or otherwise 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 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
About
© 2016
| Autodesk, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||
| Three Months Ended January 31, | Fiscal Year Ended January 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Net revenue: | ||||||||||||||||
| License and other | $ | 328.8 | $ | 354.3 | $ | 1,226.9 | $ | 1,341.4 | ||||||||
| Subscription | 319.5 | 310.3 | 1,277.2 | 1,170.8 | ||||||||||||
| Total net revenue | 648.3 | 664.6 | 2,504.1 | 2,512.2 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Cost of license and other revenue | 55.5 | 53.9 | 214.6 | 208.5 | ||||||||||||
| Cost of subscription revenue | 39.4 | 35.6 | 156.1 | 133.6 | ||||||||||||
| Total cost of revenue | 94.9 | 89.5 | 370.7 | 342.1 | ||||||||||||
| Gross profit | 553.4 | 575.1 | 2,133.4 | 2,170.1 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Marketing and sales | 277.4 | 289.9 | 1,015.5 | 998.0 | ||||||||||||
| Research and development | 204.5 | 191.5 | 790.0 | 725.2 | ||||||||||||
| General and administrative | 73.2 | 70.4 | 293.4 | 283.3 | ||||||||||||
| Amortization of purchased intangibles | 8.0 | 9.3 | 33.2 | 39.8 | ||||||||||||
| Restructuring charges, net | — | — | — | 3.1 | ||||||||||||
| Total operating expenses | 563.1 | 561.1 | 2,132.1 | 2,049.4 | ||||||||||||
| (Loss) income from operations | (9.7 | ) | 14.0 | 1.3 | 120.7 | |||||||||||
| Interest and other expense, net | (10.8 | ) | (21.1 | ) | (21.6 | ) | (37.7 | ) | ||||||||
| (Loss) income before income taxes | (20.5 | ) | (7.1 | ) | (20.3 | ) | 83.0 | |||||||||
| Provision for income taxes | (12.2 | ) | 18.6 | (305.7 | ) | (1.2 | ) | |||||||||
| Net (loss) income | $ | (32.7 | ) | $ | 11.5 | $ | (326.0 | ) | $ | 81.8 | ||||||
| Basic net (loss) income per share | $ | (0.15 | ) | $ | 0.05 | $ | (1.44 | ) | $ | 0.36 | ||||||
| Diluted net (loss) income per share | $ | (0.15 | ) | $ | 0.05 | $ | (1.44 | ) | $ | 0.35 | ||||||
| Weighted average shares used in computing basic net (loss) income per share | 224.7 | 227.2 | 226.0 | 227.1 | ||||||||||||
| Weighted average shares used in computing diluted net (loss) income per share | 224.7 | 232.2 | 226.0 | 232.4 | ||||||||||||
| Autodesk, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In millions) | ||||||||
| January 31, 2016 | January 31, 2015 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,353.0 | $ | 1,410.6 | ||||
| Marketable securities | 897.9 | 615.8 | ||||||
| Accounts receivable, net | 653.6 | 458.9 | ||||||
| Deferred income taxes, net (1) | — | 85.1 | ||||||
| Prepaid expenses and other current assets | 88.6 | 100.9 | ||||||
| Total current assets | 2,993.1 | 2,671.3 | ||||||
| Marketable securities | 532.3 | 273.0 | ||||||
| Computer equipment, software, furniture and leasehold improvements, net | 169.3 | 159.2 | ||||||
| Developed technologies, net | 70.8 | 86.5 | ||||||
| Goodwill | 1,535.0 | 1,456.2 | ||||||
| Deferred income taxes, net (1) | 9.2 | 100.0 | ||||||
| Other assets (2) | 205.6 | 163.5 | ||||||
| Total assets | $ | 5,515.3 | $ | 4,909.7 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 119.9 | $ | 100.5 | ||||
| Accrued compensation | 243.3 | 253.3 | ||||||
| Accrued income taxes | 29.4 | 28.2 | ||||||
| Deferred revenue |
1,068.9 |
900.8 | ||||||
| Other accrued liabilities (1) | 129.5 | 117.3 | ||||||
| Total current liabilities |
1,591.0 |
1,400.1 | ||||||
| Deferred revenue |
450.3 |
256.3 | ||||||
| Long term income taxes payable | 161.4 | 158.8 | ||||||
| Long term deferred income taxes (1) | 63.2 | — | ||||||
| Long term notes payable, net (2) | 1,487.7 | 743.1 | ||||||
| Other liabilities | 137.6 | 132.2 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock | — | — | ||||||
| Common stock and additional paid-in capital | 1,821.5 | 1,773.1 | ||||||
| Accumulated other comprehensive loss | (121.1 | ) | (53.3 | ) | ||||
| Retained earnings | (76.3 | ) | 499.4 | |||||
| Total stockholders’ equity | 1,624.1 | 2,219.2 | ||||||
| Total liabilities and stockholders' equity | $ | 5,515.3 | $ | 4,909.7 | ||||
_______________
(1) Effective in the fourth quarter of 2016,
(2) Effective in the second quarter of 2016,
| Autodesk, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (In millions) | ||||||||
| Fiscal Year Ended January 31, | ||||||||
| 2016 | 2015 | |||||||
| (Unaudited) | ||||||||
| Operating activities: | ||||||||
| Net (loss) income | $ | (326.0 | ) | $ | 81.8 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
| Depreciation, amortization and accretion | 145.8 | 145.9 | ||||||
| Stock-based compensation expense | 197.2 | 165.6 | ||||||
| Deferred income taxes | 231.4 | (18.8 | ) | |||||
| Excess tax benefits from stock-based compensation | — | (0.5 | ) | |||||
| Restructuring charges, net | — | 3.1 | ||||||
| Other operating activities | (25.0 | ) | 16.2 | |||||
| Changes in operating assets and liabilities, net of business combinations: | ||||||||
| Accounts receivable | (195.5 | ) | (17.3 | ) | ||||
| Prepaid expenses and other current assets | (2.8 | ) | 6.8 | |||||
| Accounts payable and accrued liabilities | 24.9 | 130.8 | ||||||
| Deferred revenue | 360.5 | 245.2 | ||||||
| Accrued income taxes | 3.5 | (50.7 | ) | |||||
| Net cash provided by operating activities | 414.0 | 708.1 | ||||||
| Investing activities: | ||||||||
| Purchases of marketable securities | (2,250.1 | ) | (1,355.1 | ) | ||||
| Sales of marketable securities | 329.4 | 190.0 | ||||||
| Maturities of marketable securities | 1,376.6 | 969.0 | ||||||
| Capital expenditures | (72.4 | ) | (75.5 | ) | ||||
| Acquisitions, net of cash acquired | (148.5 | ) | (630.0 | ) | ||||
| Other investing activities | (44.5 | ) | (4.0 | ) | ||||
| Net cash used in investing activities | (809.5 | ) | (905.6 | ) | ||||
| Financing activities: | ||||||||
| Proceeds from issuance of common stock, net of issuance costs | 110.8 | 175.4 | ||||||
| Taxes paid related to net share settlement of equity awards | (51.6 | ) | (40.0 | ) | ||||
| Repurchase and retirement of common stock | (458.0 | ) | (372.4 | ) | ||||
| Proceeds from debt, net of discount | 748.3 | — | ||||||
| Excess tax benefits from stock-based compensation | — | 0.5 | ||||||
| Other financing activities | (6.3 | ) | (3.4 | ) | ||||
| Net cash provided by (used in) financing activities | 343.2 | (239.9 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | (5.3 | ) | (5.0 | ) | ||||
| Net decrease in cash and cash equivalents | (57.6 | ) | (442.4 | ) | ||||
| Cash and cash equivalents at beginning of fiscal year | 1,410.6 | 1,853.0 | ||||||
| Cash and cash equivalents at end of the period | $ | 1,353.0 | $ | 1,410.6 | ||||
| Autodesk, Inc. | ||||||||||||||||
| Reconciliation of GAAP financial measures to non-GAAP financial measures | ||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||
| To supplement our consolidated financial statements presented on a GAAP basis, Autodesk provides investors with certain non-GAAP measures including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share and billings. Excluding billings, these non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, restructuring charges, amortization of purchased intangibles, gain and loss on strategic investments, and related income tax expenses. In the case of billings, we reconcile to revenue by adjusting for the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) during the period and other discounts. See our reconciliation of GAAP financial measures to non-GAAP financial measures herein. We believe these exclusions are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future, as well as to facilitate comparisons with our historical operating results. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of Autodesk's underlying operational results and trends and our marketplace performance. For example, non-GAAP results are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results. In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for our planning and forecasting of future periods. | ||||||||||||||||
| There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP in the United States. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release. | ||||||||||||||||
| 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, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| GAAP cost of license and other revenue | $ | 55.5 | $ | 53.9 | $ | 214.6 | $ | 208.5 | ||||||||
| Stock-based compensation expense | (1.7 | ) | (1.4 | ) | (6.1 | ) | (4.6 | ) | ||||||||
| Amortization of developed technology | (11.4 | ) | (11.5 | ) | (46.1 | ) | (48.6 | ) | ||||||||
| Non-GAAP cost of license and other revenue | $ | 42.4 | $ | 41.0 | $ | 162.4 | $ | 155.3 | ||||||||
| GAAP cost of subscription revenue | $ | 39.4 | $ | 35.6 | $ | 156.1 | $ | 133.6 | ||||||||
| Stock-based compensation expense | (1.6 | ) | (1.4 | ) | (5.7 | ) | (4.3 | ) | ||||||||
| Amortization of developed technology | (0.5 | ) | (1.1 | ) | (2.9 | ) | (4.6 | ) | ||||||||
| Non-GAAP cost of subscription revenue | $ | 37.3 | $ | 33.1 | $ | 147.5 | $ | 124.7 | ||||||||
| GAAP gross profit | $ | 553.4 | $ | 575.1 | $ | 2,133.4 | $ | 2,170.1 | ||||||||
| Stock-based compensation expense | 3.3 | 2.8 | 11.8 | 8.9 | ||||||||||||
| Amortization of developed technology | 11.9 | 12.6 | 49.0 | 53.2 | ||||||||||||
| Non-GAAP gross profit | $ | 568.6 | $ | 590.5 | $ | 2,194.2 | $ | 2,232.2 | ||||||||
| GAAP marketing and sales | $ | 277.4 | $ | 289.9 | $ | 1,015.5 | $ | 998.0 | ||||||||
| Stock-based compensation expense | (24.0 | ) | (21.4 | ) | (85.2 | ) | (72.4 | ) | ||||||||
| Non-GAAP marketing and sales | $ | 253.4 | $ | 268.5 | $ | 930.3 | $ | 925.6 | ||||||||
| GAAP research and development | $ | 204.5 | $ | 191.5 | $ | 790.0 | $ | 725.2 | ||||||||
| Stock-based compensation expense | (20.5 | ) | (16.7 | ) | (70.4 | ) | (56.0 | ) | ||||||||
| Non-GAAP research and development | $ | 184.0 | $ | 174.8 | $ | 719.6 | $ | 669.2 | ||||||||
| GAAP general and administrative | $ | 73.2 | $ | 70.4 | $ | 293.4 | $ | 283.3 | ||||||||
| Stock-based compensation expense | (8.3 | ) | (8.2 | ) | (29.8 | ) | (28.3 | ) | ||||||||
| Non-GAAP general and administrative | $ | 64.9 | $ | 62.2 | $ | 263.6 | $ | 255.0 | ||||||||
| GAAP amortization of purchased intangibles | $ | 8.0 | $ | 9.3 | $ | 33.2 | $ | 39.8 | ||||||||
| Amortization of purchased intangibles | (8.0 | ) | (9.3 | ) | (33.2 | ) | (39.8 | ) | ||||||||
| Non-GAAP Amortization of purchased intangibles | $ | — | $ | — | $ | — | $ | — | ||||||||
| GAAP restructuring charges, net | $ | — |
$ |
— |
|
$ | — | $ | 3.1 | |||||||
| Restructuring charges, net | — |
— |
|
— | (3.1 | ) | ||||||||||
| Non-GAAP restructuring charges, net | $ | — | $ | — | $ | — | $ | — | ||||||||
| GAAP operating expenses | $ | 563.1 | $ | 561.1 | $ | 2,132.1 | $ | 2,049.4 | ||||||||
| Stock-based compensation expense | (52.8 | ) | (46.3 | ) | (185.4 | ) | (156.7 | ) | ||||||||
| Amortization of purchased intangibles | (8.0 | ) | (9.3 | ) | (33.2 | ) | (39.8 | ) | ||||||||
| Restructuring charges, net | — | — | — | (3.1 | ) | |||||||||||
| Non-GAAP operating expenses | $ | 502.3 | $ | 505.5 | $ | 1,913.5 | $ | 1,849.8 | ||||||||
| GAAP (loss) income from operations | $ | (9.7 | ) | $ | 14.0 | $ | 1.3 | $ | 120.7 | |||||||
| Stock-based compensation expense | 56.1 | 49.1 | 197.2 | 165.6 | ||||||||||||
| Amortization of developed technology | 11.9 | 12.6 | 49.0 | 53.2 | ||||||||||||
| Amortization of purchased intangibles | 8.0 | 9.3 | 33.2 | 39.8 | ||||||||||||
| Restructuring charges, net | — | — | — | 3.1 | ||||||||||||
| Non-GAAP income from operations | $ | 66.3 | $ | 85.0 | $ | 280.7 | $ | 382.4 | ||||||||
| GAAP interest and other expense, net | $ | (10.8 | ) | $ | (21.1 | ) | $ | (21.6 | ) | $ | (37.7 | ) | ||||
| (Gain) loss on strategic investments | (0.4 | ) | 15.7 | (3.7 | ) | 23.3 | ||||||||||
| Non-GAAP interest and other expense, net | $ | (11.2 | ) | $ | (5.4 | ) | $ | (25.3 | ) | $ | (14.4 | ) | ||||
| GAAP provision for income taxes | $ | (12.2 | ) | $ | 18.6 | $ | (305.7 | ) | $ | (1.2 | ) | |||||
| Discrete GAAP tax provision items | (1.6 | ) | (9.5 | ) | 0.8 | (18.7 | ) | |||||||||
| Establishment of valuation allowance on deferred tax assets | — | — | 230.9 | — | ||||||||||||
| Income tax effect of non-GAAP adjustments | 6.6 | (29.9 | ) | 12.7 | (75.8 | ) | ||||||||||
| Non-GAAP provision for income tax | $ | (7.2 | ) | $ | (20.8 | ) | $ | (61.3 | ) | $ | (95.7 | ) | ||||
| GAAP net (loss) income | $ | (32.7 | ) | $ | 11.5 | $ | (326.0 | ) | $ | 81.8 | ||||||
| Stock-based compensation expense | 56.1 | 49.1 | 197.2 | 165.6 | ||||||||||||
| Amortization of developed technology | 11.9 | 12.6 | 49.0 | 53.2 | ||||||||||||
| Amortization of purchased intangibles | 8.0 | 9.3 | 33.2 | 39.8 | ||||||||||||
| Restructuring charges, net | — | — | — | 3.1 | ||||||||||||
| (Gain) loss on strategic investments | (0.4 | ) | 15.7 | (3.7 | ) | 23.3 | ||||||||||
| Discrete GAAP tax provision items | (1.6 | ) | (9.5 | ) | 0.8 | (18.7 | ) | |||||||||
| Establishment of valuation allowance on deferred tax assets | — | — | 230.9 | — | ||||||||||||
| Income tax effect of non-GAAP adjustments | 6.6 | (29.9 | ) | 12.7 | (75.8 | ) | ||||||||||
| Non-GAAP net income | $ | 47.9 | $ | 58.8 | $ | 194.1 | $ | 272.3 | ||||||||
| GAAP diluted net (loss) income per share | $ | (0.15 | ) | $ | 0.05 | $ | (1.44 | ) | $ | 0.35 | ||||||
| Stock-based compensation expense | 0.25 | 0.21 | 0.86 | 0.71 | ||||||||||||
| Amortization of developed technology | 0.05 | 0.05 | 0.21 | 0.23 | ||||||||||||
| Amortization of purchased intangibles | 0.04 | 0.04 | 0.15 | 0.17 | ||||||||||||
| Restructuring charges, net | — | — | — | 0.01 | ||||||||||||
| (Gain) Loss on strategic investments | — | 0.07 | (0.01 | ) | 0.10 | |||||||||||
| Discrete GAAP tax provision items | (0.01 | ) | (0.04 | ) | — | (0.08 | ) | |||||||||
| Establishment of valuation allowance on deferred tax assets | — | — | 1.01 | — | ||||||||||||
| Income tax effect of non-GAAP adjustments | 0.03 | (0.13 | ) | 0.06 | (0.32 | ) | ||||||||||
| Non-GAAP diluted net income per share | $ | 0.21 | $ | 0.25 | $ | 0.84 | $ | 1.17 | ||||||||
| GAAP diluted shares used in per share calculation | 224.7 | 232.2 | 226.0 | 232.4 | ||||||||||||
| Shares included in non-GAAP net income per share, but excluded from GAAP net loss per share as they would have been anti-dilutive | 4.4 | — | 4.7 | — | ||||||||||||
| Non-GAAP diluted weighted average shares used in per share calculation | 229.1 | 232.2 | 230.7 | 232.4 | ||||||||||||
|
Autodesk, Inc. |
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| Other Supplemental Financial Information (a) | ||||||||||||||||||||
| Fiscal Year 2016 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2016 | |||||||||||||||
| Financial Statistics ($ in millions, except per share data): | ||||||||||||||||||||
| Total Net Revenue: | $ | 647 | $ | 610 | $ | 600 | $ | 648 | $ | 2,504 | ||||||||||
| License and Other Revenue | $ | 327 | $ | 291 | $ | 281 | $ | 329 | $ | 1,227 | ||||||||||
| Subscription Revenue | $ | 320 | $ | 319 | $ | 319 | $ | 320 | $ | 1,277 | ||||||||||
| GAAP Gross Margin | 86 | % | 85 | % | 85 | % | 85 | % | 85 | % | ||||||||||
| Non-GAAP Gross Margin (1)(2) | 88 | % | 87 | % | 87 | % | 88 | % | 88 | % | ||||||||||
| GAAP Operating Expenses | $ | 533 | $ | 512 | $ | 524 | $ | 563 | $ | 2,132 | ||||||||||
| GAAP Operating Margin | 3 | % | 1 | % | (2 | )% | (1 | )% | — | % | ||||||||||
| GAAP Net Income (Loss) | $ | 19 | $ | (269 | ) | $ | (44 | ) | $ | (33 | ) | $ | (326 | ) | ||||||
| GAAP Diluted Net Income (Loss) Per Share (b) | $ | 0.08 | $ | (1.18 | ) | $ | (0.19 | ) | $ | (0.15 | ) | $ | (1.44 | ) | ||||||
| Non-GAAP Operating Expenses (1)(3) | $ | 477 | $ | 466 | $ | 469 | $ | 502 | $ | 1,914 | ||||||||||
| Non-GAAP Operating Margin (1)(4) | 15 | % | 11 | % | 9 | % | 10 | % | 11 | % | ||||||||||
| Non-GAAP Net Income (1)(5) | $ | 69 | $ | 44 | $ | 33 | $ | 48 | $ | 194 | ||||||||||
| Non-GAAP Diluted Net Income Per Share (1)(6)(b) | $ | 0.30 | $ | 0.19 | $ | 0.14 | $ | 0.21 | $ | 0.84 | ||||||||||
| Total Cash and Marketable Securities | $ | 2,271 | $ | 2,952 | $ | 2,824 | $ | 2,783 | $ | 2,783 | ||||||||||
| Days Sales Outstanding | 44 | 59 | 55 | 92 | ||||||||||||||||
| Capital Expenditures | $ | 13 | $ | 17 | $ | 12 | $ | 31 | $ | 72 | ||||||||||
| Cash Flow from Operating Activities | $ | 87 | $ | 77 | $ | 80 | $ | 170 | $ | 414 | ||||||||||
| GAAP Depreciation, Amortization and Accretion | $ | 38 | $ | 36 | $ | 36 | $ | 36 | $ | 146 | ||||||||||
| Deferred Subscription Revenue Balance | $ | 930 | $ | 1,004 | $ | 963 | $ | 1,148 | $ | 1,148 | ||||||||||
| Revenue by Geography: | ||||||||||||||||||||
| Americas | $ | 244 | $ | 236 | $ | 236 | $ | 257 | $ | 973 | ||||||||||
| Europe, Middle East and Africa | $ | 245 | $ | 226 | $ | 225 | $ | 238 | $ | 935 | ||||||||||
| Asia Pacific | $ | 157 | $ | 148 | $ | 139 | $ | 153 | $ | 597 | ||||||||||
| % of Total Rev from Emerging Economies | 14 | % | 15 | % | 15 | % | 14 | % | 15 | % | ||||||||||
| Revenue by Segment: | ||||||||||||||||||||
| Architecture, Engineering and Construction | $ | 237 | $ | 233 | $ | 225 | $ | 254 | $ | 949 | ||||||||||
| Manufacturing | $ | 185 | $ | 171 | $ | 175 | $ | 194 | $ | 725 | ||||||||||
| Platform Solutions and Emerging Business | $ | 185 | $ | 164 | $ | 161 | $ | 160 | $ | 670 | ||||||||||
| Media and Entertainment | $ | 40 | $ | 41 | $ | 39 | $ | 40 | $ | 160 | ||||||||||
| Other Revenue Statistics: | ||||||||||||||||||||
| % of Total Rev from Flagship | 46 | % | 45 | % | 45 | % | 46 | % | 45 | % | ||||||||||
| % of Total Rev from Suites | 37 | % | 37 | % | 36 | % | 36 | % | 37 | % | ||||||||||
| % of Total Rev from New and Adjacent | 17 | % | 18 | % | 19 | % | 18 | % | 18 | % | ||||||||||
| % of Total Rev from AutoCAD and AutoCAD LT | 25 | % | 24 | % | 24 | % | 22 | % | 24 | % | ||||||||||
|
Favorable (Unfavorable) Impact of U.S. Dollar Translation Relative to Foreign Currencies Compared to Comparable Prior Year Period: |
||||||||||||||||||||
| FX Impact on Total Billings | $ | (31 | ) | $ | (50 | ) | $ | (36 | ) | $ | (65 | ) | $ | (182 | ) | |||||
| FX Impact on Total Net Revenue | $ | (22 | ) | $ | (25 | ) | $ | (28 | ) | $ | (35 | ) | $ | (110 | ) | |||||
| FX Impact on Cost of Revenue and Total Operating Expenses | $ | 22 | $ | 25 | $ | 24 | $ | 20 | $ | 91 | ||||||||||
| FX Impact on Operating Income | $ | — | $ | — | $ | (4 | ) | $ | (15 | ) | $ | (19 | ) | |||||||
| Gross Profit by Segment: | ||||||||||||||||||||
| Architecture, Engineering and Construction | $ | 217 | $ | 210 | $ | 202 | $ | 229 | $ | 857 | ||||||||||
| Manufacturing | $ | 158 | $ | 151 | $ | 155 | $ | 174 | $ | 638 | ||||||||||
| Platform Solutions and Emerging Business | $ | 163 | $ | 138 | $ | 136 | $ | 134 | $ | 572 | ||||||||||
| Media and Entertainment | $ | 33 | $ | 32 | $ | 31 | $ | 32 | $ | 127 | ||||||||||
| Unallocated amounts | $ | (16 | ) | $ | (14 | ) | $ | (15 | ) | $ | (15 | ) | $ | (61 | ) | |||||
| Common Stock Statistics: | ||||||||||||||||||||
| GAAP Common Shares Outstanding | 227.6 | 226.2 | 225.1 | 224.4 | 224.4 | |||||||||||||||
| GAAP Fully Diluted Weighted Average Shares Outstanding | 231.7 | 227.0 | 225.3 | 224.7 | 226.0 | |||||||||||||||
| Shares Repurchased | 1.6 | 2.1 | 3.2 | 1.6 | 8.5 | |||||||||||||||
| Subscriptions (in millions): | ||||||||||||||||||||
| Total Subscriptions | 2.33 | 2.39 | 2.47 | 2.58 | 2.58 | |||||||||||||||
| Annualized Recurring Revenue (ARR): | ||||||||||||||||||||
| Maintenance Model ARR | $ | 1,141 | $ | 1,133 | $ | 1,133 | $ | 1,121 | $ | 1,121 | ||||||||||
| New Model ARR | $ | 180 | $ | 204 | $ | 221 | $ | 255 | $ | 255 | ||||||||||
| Total ARR | $ | 1,321 | $ | 1,337 | $ | 1,354 | $ | 1,376 | $ | 1,376 | ||||||||||
| (a) Totals may not agree with the sum of the components due to rounding. | ||||||||||||||||||||
| (b) Net Income (Loss) Per Share were computed independently for each of the periods presented; therefore the sum of the net income (loss) per share amounts for the quarters may not equal the total for the year. | ||||||||||||||||||||
| (1) To supplement our consolidated financial statements presented on a GAAP basis, Autodesk provides investors with certain non-GAAP measures including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share and billings. Excluding net billings, these non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, restructuring charges, amortization of purchased intangibles, gain and loss on strategic investments, and related income tax expenses. In the case of billings, we reconcile to revenue by adjusting for the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) during the period and other discounts. See our reconciliation of GAAP financial measures to non-GAAP financial measures herein. We believe these exclusions are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future, as well as to facilitate comparisons with our historical operating results. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of Autodesk's underlying operational results and trends and our marketplace performance. For example, non-GAAP results are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results. In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for our planning and forecasting of future periods. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP in the United States. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying Autodesk's press release. | ||||||||||||||||||||
| QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2016 | ||||||||||||||||
| (2) GAAP Gross Margin | 86 | % | 85 | % | 85 | % | 85 | % | 85 | % | ||||||||||
| Stock-based compensation expense | — | % | — | % | — | % | 1 | % | 1 | % | ||||||||||
| Amortization of developed technology | 2 | % | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||
| Non-GAAP Gross Margin | 88 | % | 87 | % | 87 | % | 88 | % | 88 | % | ||||||||||
| (3) GAAP Operating Expenses | $ | 533 | $ | 512 | $ | 524 | $ | 563 | $ | 2,132 | ||||||||||
| Stock-based compensation expense | (47 | ) | (38 | ) | (47 | ) | (53 | ) | (185 | ) | ||||||||||
| Amortization of purchased intangibles | (9 | ) | (8 | ) | (8 | ) | (8 | ) | (33 | ) | ||||||||||
| Non-GAAP Operating Expenses | $ | 477 | $ | 466 | $ | 469 | $ | 502 | $ | 1,914 | ||||||||||
| (4) GAAP Operating Margin | 3 | % | 1 | % | (2 | )% | (1 | )% | — | % | ||||||||||
| Stock-based compensation expense | 8 | % | 7 | % | 8 | % | 8 | % | 8 | % | ||||||||||
| Amortization of developed technology | 2 | % | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||
| Amortization of purchased intangibles | 2 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||
| Non-GAAP Operating Margin | 15 | % | 11 | % | 9 | % | 10 | % | 11 | % | ||||||||||
| (5) GAAP Net Income (Loss) | $ | 19 | $ | (269 | ) | $ | (44 | ) | $ | (33 | ) | $ | (326 | ) | ||||||
| Stock-based compensation expense | 50 | 41 | 50 | 56 | 197 | |||||||||||||||
| Amortization of developed technology | 14 | 12 | 12 | 12 | 49 | |||||||||||||||
| Amortization of purchased intangibles | 9 | 8 | 8 | 8 | 33 | |||||||||||||||
| (Gain) loss on strategic investments | (1 | ) | (2 | ) | — | — | (4 | ) | ||||||||||||
| Discrete GAAP tax (provision) benefit items | (3 | ) | 4 | 1 | (2 | ) | 1 | |||||||||||||
| Establishment of valuation allowance on deferred tax assets | — | 231 | — | — | 231 | |||||||||||||||
| Income tax effect of non-GAAP adjustments | (19 | ) | 19 | 6 | 7 | 13 | ||||||||||||||
| Non-GAAP Net Income | $ | 69 | $ | 44 | $ | 33 | $ | 48 | $ | 194 | ||||||||||
| (6) GAAP Diluted Net Income (Loss) Per Share | $ | 0.08 | $ | (1.18 | ) | $ | (0.19 | ) | $ | (0.15 | ) | $ | (1.44 | ) | ||||||
| Stock-based compensation expense | 0.21 | 0.18 | 0.22 | 0.25 | 0.86 | |||||||||||||||
| Amortization of developed technology | 0.06 | 0.05 | 0.05 | 0.05 | 0.21 | |||||||||||||||
| Amortization of purchased intangibles | 0.04 | 0.04 | 0.03 | 0.04 | 0.15 | |||||||||||||||
| (Gain) loss on strategic investments | — | (0.01 | ) | — | — | (0.01 | ) | |||||||||||||
| Discrete GAAP tax (provision) benefit items | (0.01 | ) | 0.02 | — | (0.01 | ) | — | |||||||||||||
| Establishment of valuation allowance on deferred tax assets | — | 1.01 | — | — | 1.01 | |||||||||||||||
| Income tax effect of non-GAAP adjustments | (0.08 | ) | 0.08 | 0.03 | 0.03 | 0.06 | ||||||||||||||
| Non-GAAP Diluted Net Income Per Share | $ | 0.30 | $ | 0.19 | $ | 0.14 | $ | 0.21 | $ | 0.84 | ||||||||||
| Reconciliation for Billings: | ||||||||||||||||||||
| Q116 | Q216 | Q316 | Q416 | FY16 | ||||||||||||||||
| Year over year change in GAAP net revenue | 9 | % | (4 | )% | (3 | )% | (2 | )% | — | % | ||||||||||
| Change in deferred revenue in the current period | (11 | )% | 10 | % | (8 | )% | 19 | % | 4 | % | ||||||||||
| Change in hedge gain (loss) applicable to billings | 4 | % | 2 | % | — | % | (1 | )% | 1 | % | ||||||||||
| Change in acquisition related deferred revenue and other | 1 | % | (1 | )% | 2 | % | (1 | )% | — | % | ||||||||||
| Year over year change in billings | 3 | % | 7 | % | (9 | )% | 15 | % | 5 | % | ||||||||||
| Reconciliation for Subscription Billings | ||||||||||||||||||||
| Q116 | Q216 | Q316 | Q416 | FY16 | ||||||||||||||||
| Year-over-year change in GAAP subscription revenue | 16 | % | 11 | % | 7 | % | 3 | % | 9 | % | ||||||||||
| Change in deferred subscription in the current period | (20 | )% | 31 | % | (14 | )% | 20 | % | 5 | % | ||||||||||
| Change in hedge gain (loss) applicable to subscription billings | 5 | % | 4 | % | 1 | % | (2 | )% | 1 | % | ||||||||||
| Change in acquisition related deferred subscription revenue and other | 2 | % | 6 | % | — | % | (2 | )% | 1 | % | ||||||||||
| Year-over-year change in subscription billings | 3 | % | 52 | % | (6 | )% | 19 | % | 16 | % | ||||||||||
| (a) Totals may not agree with the sum of the components due to rounding. | ||||||||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160225006438/en/
Source:
Autodesk, Inc.
Investors:
David Gennarelli, 415-507-6033
david.gennarelli@autodesk.com
Press:
Noah
Cole, 415-580-3535
noah.cole@autodesk.com