Delaware | 000-14338 | 94-2819853 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description |
99.1 | |
99.2 |
AUTODESK, INC. | |
By: /s/ PAUL UNDERWOOD | |
Paul Underwood Vice President and Corporate Controller (Principal Accounting Officer) |
Exhibit No. | Description |
99.1 | |
99.2 |
• | 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. |
• | 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. |
• | 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. |
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 |
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% |
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 |
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. |
(in millions) | 4Q 2018 | YoY % | YoY CC % | Management Comments | |||||
Subscription plan ARR | $ | 1,175 | 106 | % | 105 | % | Driven by growth in all subscription plan types, led by product subscription. | ||
Maintenance plan ARR | $ | 879 | (18 | )% | (17 | ) % | Driven by the migration of maintenance plan subscriptions to product subscriptions. | ||
Total ARR | $ | 2,054 | 25 | % | 25 | % |
4Q 2018 | QoQ Change | Management Comments | ||||
Subscription plan subscriptions | 2,267,000 | 371,000 | Driven by growth in all subscription plan types, led by product subscription. | |||
Maintenance plan subscriptions | 1,449,000 | (244,000 | ) | Driven by the migration to product subscriptions. | ||
Total subscriptions | 3,716,000 | 127,000 |
(in millions) | 4Q 2018 | YoY % | YoY CC % | Management Comments | |||||
Deferred revenue | $ | 1,955 | 9 | % | N/A | Driven by the increase in subscription plan billings over the past four quarters. | |||
Unbilled deferred revenue | $ | 326 | ~1,000% | N/A | Driven by the change to annual billing terms for large enterprise customers. | ||||
Total deferred revenue | $ | 2,281 | ~25% | N/A | |||||
Revenue | $ | 554 | 16 | % | 16 | % | Driven by growth in subscription plan revenue, led by product subscription. | ||
GAAP spend | $ | 736 | 14 | % | 12 | % | Driven by higher restructuring costs partially offset by lower costs of revenue. | ||
Non-GAAP spend | $ | 571 | 2 | % | flat | Driven by higher commissions partially offset by lower costs of revenue. |
(in millions) (1) (2) | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | ||||||||||
Subscription plan ARR | $ | 571 | $ | 692 | $ | 784 | $ | 924 | $ | 1,175 | |||||
Maintenance plan ARR | 1,068 | 1,052 | 1,046 | 978 | 879 | ||||||||||
Total ARR | $ | 1,639 | $ | 1,744 | $ | 1,830 | $ | 1,902 | $ | 2,054 | |||||
Recurring revenue | $ | 410 | $ | 436 | $ | 457 | $ | 476 | $ | 514 | |||||
Recurring revenue as a percentage of total revenue | 86 | % | 90 | % | 91 | % | 92 | % | 93 | % |
(in thousands) (1) (2) | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | |||||
Subscription plan subscriptions | 1,087 | 1,320 | 1,589 | 1,896 | 2,267 | |||||
Maintenance plan subscriptions | 2,018 | 1,971 | 1,854 | 1,693 | 1,449 | |||||
Total subscriptions | 3,105 | 3,291 | 3,443 | 3,589 | 3,716 |
(1) | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | ||||||||||
Subscription plan ARPS | $ | 526 | $ | 524 | $ | 493 | $ | 487 | $ | 518 | |||||
Maintenance plan ARPS | 529 | 534 | 564 | 577 | 607 | ||||||||||
Total ARPS | $ | 528 | $ | 530 | $ | 531 | $ | 530 | $ | 553 |
(in millions) (1) (2) | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | ||||||||||
Subscription revenue | $ | 143 | $ | 173 | $ | 196 | $ | 231 | $ | 294 | |||||
Maintenance revenue | 268 | 264 | 262 | 244 | 220 | ||||||||||
License and other revenue | 67 | 49 | 44 | 40 | 40 | ||||||||||
Total net revenue | $ | 479 | $ | 486 | $ | 502 | $ | 515 | $ | 554 | |||||
Direct Revenue | 32 | % | 30 | % | 29 | % | 30 | % | 30 | % | |||||
Indirect Revenue | 68 | % | 70 | % | 71 | % | 70 | % | 70 | % |
(in millions) (1) | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | ||||||||||
Americas | $ | 211 | $ | 210 | $ | 214 | $ | 215 | $ | 232 | |||||
EMEA | $ | 186 | $ | 190 | $ | 199 | $ | 205 | $ | 221 | |||||
Asia Pacific | $ | 82 | $ | 86 | $ | 89 | $ | 95 | $ | 100 | |||||
Emerging Economies | $ | 53 | $ | 51 | $ | 54 | $ | 58 | $ | 64 | |||||
Emerging as a percentage of Total Revenue | 11 | % | 10 | % | 11 | % | 11 | % | 12 | % |
(in millions) (1) | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | ||||||||||
Architecture, Engineering and Construction (AEC) | $ | 197 | $ | 205 | $ | 209 | $ | 215 | $ | 238 | |||||
Manufacturing | $ | 144 | $ | 142 | $ | 147 | $ | 147 | $ | 153 | |||||
AutoCAD and AutoCAD LT | $ | 88 | $ | 92 | $ | 97 | $ | 103 | $ | 111 | |||||
Media and Entertainment (M&E) | $ | 35 | $ | 37 | $ | 38 | $ | 38 | $ | 40 | |||||
Other | $ | 15 | $ | 11 | $ | 12 | $ | 13 | $ | 12 |
(1) | Due to rounding, the sum of the components may not agree to total revenue. |
(in millions) | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | ||||||||||
Year-on-Year FX Impact on Total ARR | $ | (33 | ) | $ | (20 | ) | $ | (18 | ) | $ | (11 | ) | $ | (1 | ) |
Year-on-Year FX Impact on Total Revenue | $ | (11 | ) | $ | (6 | ) | $ | (5 | ) | $ | (3 | ) | $ | — | |
Year-on-Year FX Benefit (Impact) on Cost of Revenue and Operating Expenses | 9 | 4 | 4 | (3 | ) | (12 | ) | ||||||||
Year-on-Year FX Impact on Operating Income | $ | (2 | ) | $ | (2 | ) | $ | (1 | ) | $ | (6 | ) | $ | (12 | ) |
(in millions) | 4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | ||||||||||
Cash Flow from Operating Activities | $ | 16 | $ | 45 | $ | (73 | ) | $ | (51 | ) | $ | 79 | |||
Capital Expenditures | $ | 11 | $ | 9 | $ | 18 | $ | 13 | $ | 11 | |||||
Depreciation, Amortization and Accretion | $ | 35 | $ | 28 | $ | 28 | $ | 25 | $ | 27 | |||||
Total Cash and Marketable Securities | $ | 2,206 | $ | 2,076 | $ | 1,944 | $ | 1,718 | $ | 1,514 | |||||
Deferred Revenue | $ | 1,788 | $ | 1,802 | $ | 1,776 | $ | 1,764 | $ | 1,955 | |||||
Unbilled Deferred Revenue* | $ ~30 | $ | 30 | $ | 63 | $ | 148 | $ | 326 | ||||||
Total Deferred Revenue | $ ~1,818 | $ | 1,832 | $ | 1,839 | $ | 1,912 | $ | 2,281 |
4Q 2017 | 1Q 2018 | 2Q 2018 | 3Q 2018 | 4Q 2018 | |||||||||||
Gross Margin | |||||||||||||||
Gross Margin - GAAP | 83 | % | 84 | % | 85 | % | 85 | % | 87 | % | |||||
Gross Margin - Non-GAAP | 85 | % | 86 | % | 87 | % | 86 | % | 88 | % | |||||
Operating Expenses (in millions) | |||||||||||||||
Operating Expenses - GAAP | $ | 563 | $ | 527 | $ | 535 | $ | 538 | $ | 663 | |||||
Operating Expenses - Non-GAAP | $ | 489 | $ | 456 | $ | 464 | $ | 472 | $ | 506 | |||||
Total Spend (in millions) | |||||||||||||||
Total Spend - GAAP | $ | 646 | $ | 605 | $ | 609 | $ | 615 | $ | 736 | |||||
Total Spend - Non-GAAP | $ | 560 | $ | 525 | $ | 531 | $ | 542 | $ | 571 | |||||
Operating Margin | |||||||||||||||
Operating Margin - GAAP | (35 | )% | (25 | )% | (21 | )% | (19 | )% | (33 | )% | |||||
Operating Margin - Non-GAAP | (17 | )% | (8 | )% | (6 | )% | (5 | )% | (3 | )% | |||||
Earnings Per Share | |||||||||||||||
Basic and Diluted Net Loss Per Share - GAAP | $ | (0.78 | ) | $ | (0.59 | ) | $ | (0.66 | ) | $ | (0.55 | ) | $ | (0.79 | ) |
Basic and Diluted Net Loss Per Share - Non-GAAP | $ | (0.28 | ) | $ | (0.16 | ) | $ | (0.11 | ) | $ | (0.12 | ) | $ | (0.09 | ) |
Weighted Average Shares | |||||||||||||||
GAAP and Non-GAAP Basic and Diluted Net Loss Share Count | 221.1 | 219.9 | 219.5 | 219.6 | 219.1 |
• | 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. |
• | 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. |
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 |
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% |
• | We do not conduct foreign currency hedging for speculative purposes. The purpose of our hedging program is to reduce risk to foreign denominated cash flows and to partially reduce variability that would otherwise impact our financial results from currency fluctuations. |
• | We utilize cash flow hedges on projected billings and certain projected operating expenses in major currencies. We hedge our net exposures using a four quarter rolling layered hedge. The closer to the current period, the more we are hedged. |
• | We designate cash flow hedges for deferred and non-deferred billings separately, and reflect associated gains and losses on hedging contracts in our earnings when respective revenue is recognized in earnings. |
• | On a monthly basis, to mitigate foreign currency exchange rate gains/losses, we hedge net monetary assets and liabilities recorded in non-functional currencies on the books of certain USD functional entities where these exposures are purposefully concentrated. |
• | From time to time, we hedge strategic exposures which may be related to acquisitions. Such hedges may not qualify for hedge accounting and are marked-to-market and reflected in earnings immediately. |
• | The major currencies in our hedging program include the euro, yen, Swiss franc, British pound, Canadian dollar, and Australian dollar. The euro is the primary exposure for the company. |
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. |
Q4 FY17 | Q1 FY18 | Q2 FY18 | Q3 FY18 | Q4 FY18 | |||||||||||||||
(Unaudited) | |||||||||||||||||||
GAAP gross margin | 83 | % | 84 | % | 85 | % | 85 | % | 87 | % | |||||||||
Stock-based compensation expense | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | |||||||||
Amortization of developed technology | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | |||||||||
Non-GAAP gross margin (2) | 85 | % | 86 | % | 87 | % | 86 | % | 88 | % | |||||||||
Operating Expenses - GAAP | $ | 563 | $ | 527 | $ | 535 | $ | 538 | $ | 663 | |||||||||
Stock-based compensation expense | (56 | ) | (55 | ) | (55 | ) | (61 | ) | (58 | ) | |||||||||
Amortization of purchased intangibles | (9 | ) | (6 | ) | (5 | ) | (5 | ) | (5 | ) | |||||||||
CEO transition costs (1) | — | (11 | ) | (11 | ) | — | — | ||||||||||||
Restructuring charges and other facility exit costs, net | (9 | ) | — | (1 | ) | — | (94 | ) | |||||||||||
Operating Expenses - Non-GAAP (2) | $ | 489 | $ | 456 | $ | 464 | $ | 472 | $ | 506 | |||||||||
GAAP Spend | $ | 646 | $ | 605 | $ | 609 | $ | 615 | $ | 736 | |||||||||
Stock-based compensation expense | (59 | ) | (59 | ) | (59 | ) | (65 | ) | (62 | ) | |||||||||
Amortization of developed technology | (8 | ) | (5 | ) | (4 | ) | (4 | ) | (4 | ) | |||||||||
Amortization of purchased intangibles | (9 | ) | (6 | ) | (5 | ) | (5 | ) | (5 | ) | |||||||||
CEO transition costs (1) | — | (11 | ) | (11 | ) | — | — | ||||||||||||
Restructuring charges and other facility exit costs, net | (9 | ) | — | (1 | ) | — | (94 | ) | |||||||||||
Non-GAAP Spend (2) | $ | 560 | $ | 525 | $ | 531 | $ | 542 | $ | 571 | |||||||||
GAAP operating margin | (35 | )% | (25 | )% | (21 | )% | (19 | )% | (33 | )% | |||||||||
Stock-based compensation expense | 12 | % | 12 | % | 12 | % | 13 | % | 11 | % | |||||||||
Amortization of developed technology | 2 | % | 1 | % | 1 | % | 1 | % | 1 | % | |||||||||
Amortization of purchased intangibles | 2 | % | 1 | % | 1 | % | 1 | % | 1 | % | |||||||||
CEO transition costs | — | % | 2 | % | 2 | % | — | % | — | % | |||||||||
Restructuring charges and other facility exit costs, net | 2 | % | — | % | — | % | — | % | 17 | % | |||||||||
Non-GAAP operating margin (2) | (17 | )% | (8 | )% | (6 | )% | (5 | )% | (3 | )% | |||||||||
GAAP basic and diluted net loss per share | $ | (0.78 | ) | $ | (0.59 | ) | $ | (0.66 | ) | $ | (0.55 | ) | $ | (0.79 | ) | ||||
Stock-based compensation expense | 0.28 | 0.27 | 0.27 | 0.30 | 0.28 | ||||||||||||||
Amortization of developed technology | 0.03 | 0.02 | 0.02 | 0.02 | 0.02 | ||||||||||||||
Amortization of purchased intangibles | 0.04 | 0.03 | 0.02 | 0.02 | 0.02 | ||||||||||||||
CEO transition costs | 0.04 | 0.05 | — | — | |||||||||||||||
Restructuring charges and other facility exit costs, net | 0.04 | — | — | — | 0.43 | ||||||||||||||
Gain on strategic investments and dispositions | — | (0.03 | ) | 0.07 | 0.01 | 0.03 | |||||||||||||
Discrete GAAP tax provision items | (0.04 | ) | (0.03 | ) | — | (0.01 | ) | (0.05 | ) | ||||||||||
Income tax effect of non-GAAP adjustments | 0.15 | 0.13 | 0.12 | 0.09 | (0.03 | ) | |||||||||||||
Non-GAAP basic and diluted net loss per share | $ | (0.28 | ) | $ | (0.16 | ) | $ | (0.11 | ) | $ | (0.12 | ) | $ | (0.09 | ) | ||||
GAAP diluted weighted average shares used in per share calculation | 221.1 | 219.9 | 219.5 | 219.6 | 219.1 | ||||||||||||||
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 | 221.1 | 219.9 | 219.5 | 219.6 | 219.1 |
(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) | Totals may not sum due to rounding. |