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)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.01 per share | ADSK | The Nasdaq Global Select Market |
Exhibit No. | Description |
99.1 |
AUTODESK, INC. | |
By: /s/ R. SCOTT HERREN | |
R. Scott Herren Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
Exhibit No. | Description |
99.1 |
• | Total ARR increased 33 percent to $2.83 billion; |
• | Billings were $798 million; adjusting for adoption of ASC 606, billings increased 40 percent; |
• | Total revenue increased 31 percent to $735 million; recurring revenue represents 96 percent of total; |
• | GAAP operating margin was 3 percent, up 13 percentage points; |
• | Non-GAAP operating margin was 18 percent, up 13 percentage points; |
• | GAAP diluted EPS was $(0.11); Non-GAAP diluted EPS of $0.45; |
• | Cash flow from operating activities was $221 million; free cash flow was $207 million |
• | Total ARR increased 33 percent to $2.83 billion as reported, and 32 percent on a constant currency basis. On a sequential basis, total ARR increased 3 percent as reported, and on a constant currency basis. |
• | Subscription plan ARR increased 70 percent to $2.38 billion as reported, and 69 percent on a constant currency basis. On a sequential basis, subscription plan ARR increased 8 percent as reported, and on a constant currency basis. Subscription plan ARR includes $505 million related to the maintenance-to-subscription (M2S) program. |
• | Maintenance plan ARR decreased 38 percent to $448 million as reported, and 40 percent on a constant currency basis. On a sequential basis, maintenance plan ARR decreased 18 percent as reported, and 19 percent on a constant currency basis. |
• | Core ARR increased 29 percent to $2.65 billion. On a sequential basis, core ARR increased 1 percent. |
• | Cloud ARR increased 164 percent to $181 million. Excluding fourth quarter acquisitions, cloud ARR increased 43 percent to $98 million. On a sequential basis, total cloud ARR increased 43 percent. |
• | Net revenue retention rate was within the fiscal 2019 range of approximately 110 to 120 percent. |
• | Total revenue increased 31 percent to $735 million as reported, and 30 percent on a constant currency basis. |
• | Total recurring revenue in the first quarter was 96 percent of total revenue, compared to 95 percent in the first quarter last year. |
• | GAAP operating income was $25 million compared to a loss of $(55) million in the first quarter last year. GAAP operating margin was 3 percent, up 13 percentage points year-over-year. The increase was driven by an increase in revenue, operating leverage, and lower restructuring costs. |
• | Total non-GAAP operating income was $132 million compared to $29 million in the first quarter last year. Non-GAAP operating margin was 18 percent, up 13 percentage points year-over-year. The increase was driven by an increase in revenue and operating leverage. |
• | GAAP diluted net loss per share was $(0.11), compared to GAAP diluted net loss per share of $(0.38) in the first quarter last year. |
• | Non-GAAP diluted net income per share was $0.45, compared to non-GAAP diluted net income per share of $0.06 in the first quarter last year. |
• | Billings were $798 million; adjusting for adoption of ASC 606, billings increased 40 percent. |
• | Deferred revenue increased 19 percent to $2.15 billion. The increase is primarily related to the increase in subscription plan billings as well as recent acquisitions. Unbilled deferred revenue at the end of the first quarter was $589 million, a decrease of $2 million compared to the fourth quarter of fiscal 2019. The decrease is primarily due to the normal seasonality of EBA billings. Total deferred revenue (deferred revenue plus unbilled deferred revenue) was $2.74 billion, an increase of 24 percent compared to the first quarter last year. |
• | Cash flow from operating activities was $221 million, an increase of $238 million compared to the first quarter last year. Free cash flow was $207 million, an increase of $240 million compared to the first quarter last year. |
Three months ended April 30, 2019 | Three months ended April 30, 2018 | Change compared to prior fiscal year | Constant currency change compared to prior fiscal year | ||||||||||||||
(In millions, except percentages) | $ | % | % | ||||||||||||||
Net Revenue: | |||||||||||||||||
Americas | |||||||||||||||||
U.S. | $ | 249.1 | $ | 195.9 | $ | 53.2 | 27 | % | * | ||||||||
Other Americas | 46.7 | 37.6 | 9.1 | 24 | % | * | |||||||||||
Total Americas | 295.8 | 233.5 | 62.3 | 27 | % | 27 | % | ||||||||||
EMEA | 297.2 | 220.9 | 76.3 | 35 | % | 31 | % | ||||||||||
APAC | 142.5 | 105.5 | 37.0 | 35 | % | 36 | % | ||||||||||
Total Net Revenue | $ | 735.5 | $ | 559.9 | $ | 175.6 | 31 | % | 30 | % | |||||||
Emerging Economies | $ | 87.9 | $ | 65.2 | $ | 22.7 | 35 | % | 35 | % |
Three months ended | Change compared to prior fiscal year | |||||||||||||
(In millions, except percentages) | April 30, 2019 | April 30, 2018 | $ | % | ||||||||||
AEC | $ | 304.3 | $ | 221.8 | $ | 82.5 | 37 | % | ||||||
AutoCAD and AutoCAD LT | 213.2 | 155.6 | 57.6 | 37 | % | |||||||||
MFG | 167.5 | 135.4 | 32.1 | 24 | % | |||||||||
M&E | 45.5 | 41.8 | 3.7 | 9 | % | |||||||||
Other | 5.0 | 5.3 | (0.3 | ) | (6 | )% | ||||||||
$ | 735.5 | $ | 559.9 | $ | 175.6 | 31 | % |
Q2 FY20 Guidance Metrics | Q2 FY20 (ending July 31, 2019) |
Revenue (in millions) | $782 - $792 |
EPS GAAP | $0.13 - $0.17 |
EPS non-GAAP (1) | $0.59 - $0.63 |
FY20 Guidance Metrics | FY20 (ending January 31, 2020) |
Total ARR (in millions) | $3,500 - $3,550 Up 27% - 29% |
Billings (in millions) | $4,050 - $4,150 Up 50% - 53% |
Revenue (in millions) | $3,250 - $3,300 Up 26% - 28% |
GAAP spend growth (1) | Approx. 12% |
Non-GAAP spend growth (2) | Approx. 9% |
EPS GAAP (1) | $0.83 - $1.02 |
EPS non-GAAP (3) | $2.71 - $2.90 |
Free cash flow | Approx. $1.35 billion |
Autodesk, Inc. | |||||||
Condensed Consolidated Statements of Operations | |||||||
(In millions, except per share data) | |||||||
Three Months Ended April 30, | |||||||
2019 | 2018 | ||||||
(Unaudited) | |||||||
Net revenue: | |||||||
Subscription | $ | 595.8 | $ | 350.4 | |||
Maintenance | 112.0 | 181.2 | |||||
Total subscription and maintenance revenue | 707.8 | 531.6 | |||||
Other | 27.7 | 28.3 | |||||
Total net revenue | 735.5 | 559.9 | |||||
Cost of revenue: | |||||||
Cost of subscription and maintenance revenue | 59.7 | 50.4 | |||||
Cost of other revenue | 13.8 | 12.8 | |||||
Amortization of developed technology | 9.2 | 3.6 | |||||
Total cost of revenue | 82.7 | 66.8 | |||||
Gross profit | 652.8 | 493.1 | |||||
Operating expenses: | |||||||
Marketing and sales | 313.3 | 276.4 | |||||
Research and development | 205.6 | 172.8 | |||||
General and administrative | 99.1 | 72.9 | |||||
Amortization of purchased intangibles | 9.8 | 3.8 | |||||
Restructuring and other exit costs, net | 0.2 | 22.5 | |||||
Total operating expenses | 628.0 | 548.4 | |||||
Income (loss) from operations | 24.8 | (55.3 | ) | ||||
Interest and other expense, net | (16.2 | ) | (8.5 | ) | |||
Income (loss) before income taxes | 8.6 | (63.8 | ) | ||||
Provision for income taxes | (32.8 | ) | (18.6 | ) | |||
Net loss | $ | (24.2 | ) | $ | (82.4 | ) | |
Basic net loss per share | $ | (0.11 | ) | $ | (0.38 | ) | |
Diluted net loss per share | $ | (0.11 | ) | $ | (0.38 | ) | |
Weighted average shares used in computing basic net loss per share | 219.6 | 218.6 | |||||
Weighted average shares used in computing diluted net loss per share | 219.6 | 218.6 |
Autodesk, Inc. | |||||||
Condensed Consolidated Balance Sheets | |||||||
(In millions) | |||||||
April 30, 2019 | January 31, 2019 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 883.2 | $ | 886.0 | |||
Marketable securities | 88.9 | 67.6 | |||||
Accounts receivable, net | 268.1 | 474.3 | |||||
Prepaid expenses and other current assets | 182.1 | 192.1 | |||||
Total current assets | 1,422.3 | 1,620.0 | |||||
Computer equipment, software, furniture and leasehold improvements, net | 152.6 | 149.7 | |||||
Operating lease right-of-use assets | 309.9 | — | |||||
Developed technologies, net | 96.3 | 105.6 | |||||
Goodwill | 2,446.2 | 2,450.8 | |||||
Deferred income taxes, net | 54.4 | 65.3 | |||||
Other assets | 326.8 | 337.8 | |||||
Total assets | $ | 4,808.5 | $ | 4,729.2 | |||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 98.0 | $ | 101.6 | |||
Accrued compensation | 161.8 | 280.8 | |||||
Accrued income taxes | 6.5 | 13.2 | |||||
Deferred revenue | 1,777.5 | 1,763.3 | |||||
Lease liabilities | 59.2 | — | |||||
Other accrued liabilities | 117.7 | 142.3 | |||||
Total current liabilities | 2,220.7 | 2,301.2 | |||||
Long-term deferred revenue | 376.0 | 328.1 | |||||
Long-term lease liabilities | 265.6 | — | |||||
Long-term income taxes payable | 18.4 | 21.5 | |||||
Long-term deferred income taxes | 93.9 | 79.8 | |||||
Long-term notes payable, net | 1,963.3 | 2,087.7 | |||||
Other liabilities | 115.9 | 121.8 | |||||
Stockholders’ deficit: | |||||||
Common stock and additional paid-in capital | 2,123.1 | 2,071.5 | |||||
Accumulated other comprehensive loss | (141.6 | ) | (135.0 | ) | |||
Accumulated deficit | (2,226.8 | ) | (2,147.4 | ) | |||
Total stockholders’ deficit | (245.3 | ) | (210.9 | ) | |||
Total liabilities and stockholders' deficit | $ | 4,808.5 | $ | 4,729.2 |
Autodesk, Inc. | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(In millions) | |||||||
Three Months Ended April 30, | |||||||
2019 | 2018 | ||||||
(Unaudited) | |||||||
Operating activities: | |||||||
Net loss | $ | (24.2 | ) | $ | (82.4 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Depreciation, amortization and accretion | 32.7 | 24.1 | |||||
Stock-based compensation expense | 75.2 | 54.4 | |||||
Deferred income taxes | 24.4 | 13.3 | |||||
Restructuring and other exit costs, net | 0.2 | 22.5 | |||||
Other operating activities | 15.3 | 10.5 | |||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | 206.2 | 231.4 | |||||
Prepaid expenses and other current assets | 11.4 | (1.4 | ) | ||||
Accounts payable and accrued liabilities | (172.6 | ) | (227.7 | ) | |||
Deferred revenue | 62.2 | (58.5 | ) | ||||
Accrued income taxes | (9.6 | ) | (3.1 | ) | |||
Net cash provided by (used in) operating activities | 221.2 | (16.9 | ) | ||||
Investing activities: | |||||||
Purchases of marketable securities | (19.8 | ) | (9.9 | ) | |||
Sales of marketable securities | 4.6 | 6.2 | |||||
Maturities of marketable securities | — | 68.6 | |||||
Capital expenditures | (14.7 | ) | (16.7 | ) | |||
Other investing activities | 0.7 | (0.6 | ) | ||||
Net cash (used in) provided by investing activities | (29.2 | ) | 47.6 | ||||
Financing activities: | |||||||
Proceeds from issuance of common stock, net of issuance costs | 46.9 | 49.1 | |||||
Taxes paid related to net share settlement of equity awards | (25.8 | ) | (38.8 | ) | |||
Repurchase and retirement of common stock | (88.5 | ) | (22.0 | ) | |||
Repayment of debt | (125.0 | ) | — | ||||
Net cash used in financing activities | (192.4 | ) | (11.7 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (2.4 | ) | (4.0 | ) | |||
Net (decrease) increase in cash and cash equivalents | (2.8 | ) | 15.0 | ||||
Cash and cash equivalents at beginning of the period | 886.0 | 1,078.0 | |||||
Cash and cash equivalents at end of the period | $ | 883.2 | $ | 1,093.0 |
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, we provide investors with certain non-GAAP measures including non-GAAP net income per share, non-GAAP operating margin, non-GAAP spend, non-GAAP EPS and free cash flow. For our internal budgeting and resource allocation process and as a means to evaluate period-to-period comparisons, we use non-GAAP measures to supplement our consolidated financial statements presented on a GAAP basis. These non-GAAP measures do not include certain items that may have a material impact upon our future reported financial results. We use non-GAAP measures in making operating decisions because we believe those measures provide meaningful supplemental information regarding our earning potential and performance for management by excluding certain expenses and charges that may not be indicative of our core business operating results. For the reasons set forth below, we believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. This allows investors and others to better understand and evaluate our operating results and future prospects in the same manner as management, compare financial results across accounting periods and to those of peer companies and to better understand the long-term performance of our core business. We also use some of these measures for purposes of determining company-wide incentive compensation. | |||||||
There are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP 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. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which charges are excluded from the non-GAAP financial measures. We compensate for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in our public disclosures. The presentation of non-GAAP financial information is meant to be considered in addition to, not as a substitute for or in isolation from, the directly comparable financial measures prepared in accordance with GAAP. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures included in this presentation, and not to rely on any single financial measure to evaluate our business. | |||||||
The following table shows Autodesk's non-GAAP results reconciled to GAAP results included in this release. | |||||||
Three Months Ended April 30, | |||||||
2019 | 2018 | ||||||
(Unaudited) | |||||||
GAAP cost of subscription and maintenance revenue | $ | 59.7 | $ | 50.4 | |||
Stock-based compensation expense | (3.6 | ) | (2.7 | ) | |||
Non-GAAP cost of subscription and maintenance revenue | $ | 56.1 | $ | 47.7 | |||
GAAP cost of other revenue | $ | 13.8 | $ | 12.8 | |||
Stock-based compensation expense | (1.3 | ) | (0.8 | ) | |||
Non-GAAP cost of other revenue | $ | 12.5 | $ | 12.0 | |||
GAAP amortization of developed technology | $ | 9.2 | $ | 3.6 | |||
Amortization of developed technology | (9.2 | ) | (3.6 | ) | |||
Non-GAAP amortization of developed technology | $ | — | $ | — | |||
GAAP gross profit | $ | 652.8 | $ | 493.1 | |||
Stock-based compensation expense | 4.9 | 3.5 | |||||
Amortization of developed technology | 9.2 | 3.6 | |||||
Non-GAAP gross profit | $ | 666.9 | $ | 500.2 | |||
GAAP marketing and sales | $ | 313.3 | $ | 276.4 |
Stock-based compensation expense | (32.5 | ) | (24.0 | ) | |||
Non-GAAP marketing and sales | $ | 280.8 | $ | 252.4 | |||
GAAP research and development | $ | 205.6 | $ | 172.8 | |||
Stock-based compensation expense | (26.7 | ) | (17.8 | ) | |||
Non-GAAP research and development | $ | 178.9 | $ | 155.0 | |||
GAAP general and administrative | $ | 99.1 | $ | 72.9 | |||
Stock-based compensation expense | (11.1 | ) | (9.1 | ) | |||
Acquisition related costs | (12.7 | ) | — | ||||
Non-GAAP general and administrative | $ | 75.3 | $ | 63.8 | |||
GAAP amortization of purchased intangibles | $ | 9.8 | $ | 3.8 | |||
Amortization of purchased intangibles | (9.8 | ) | (3.8 | ) | |||
Non-GAAP amortization of purchased intangibles | $ | — | $ | — | |||
GAAP restructuring and other exit costs, net | $ | 0.2 | $ | 22.5 | |||
Restructuring and other exit costs, net | (0.2 | ) | (22.5 | ) | |||
Non-GAAP restructuring and other exit costs, net | $ | — | $ | — | |||
GAAP operating expenses | $ | 628.0 | $ | 548.4 | |||
Stock-based compensation expense | (70.3 | ) | (50.9 | ) | |||
Amortization of purchased intangibles | (9.8 | ) | (3.8 | ) | |||
Acquisition related costs | (12.7 | ) | — | ||||
Restructuring and other exit costs, net | (0.2 | ) | (22.5 | ) | |||
Non-GAAP operating expenses | $ | 535.0 | $ | 471.2 | |||
GAAP spend | $ | 710.7 | $ | 615.2 | |||
Stock-based compensation expense | (75.2 | ) | (54.4 | ) | |||
Amortization of developed technology | (9.2 | ) | (3.6 | ) | |||
Amortization of purchased intangibles | (9.8 | ) | (3.8 | ) | |||
Acquisition related costs | (12.7 | ) | — | ||||
Restructuring and other exit costs, net | (0.2 | ) | (22.5 | ) | |||
Non-GAAP spend | $ | 603.6 | $ | 530.9 | |||
GAAP income (loss) from operations | $ | 24.8 | $ | (55.3 | ) | ||
Stock-based compensation expense | 75.2 | 54.4 | |||||
Amortization of developed technology | 9.2 | 3.6 | |||||
Amortization of purchased intangibles | 9.8 | 3.8 | |||||
Acquisition related costs | 12.7 | — | |||||
Restructuring and other exit costs, net | 0.2 | 22.5 | |||||
Non-GAAP income from operations | $ | 131.9 | $ | 29.0 | |||
GAAP interest and other expense, net | $ | (16.2 | ) | $ | (8.5 | ) | |
Loss (gain) on strategic investments and dispositions, net | 5.0 | (2.7 | ) | ||||
Non-GAAP interest and other expense, net | $ | (11.2 | ) | $ | (11.2 | ) | |
GAAP provision for income taxes | $ | (32.8 | ) | $ | (18.6 | ) | |
Discrete GAAP tax items | (2.3 | ) | — |
Income tax effect of non-GAAP adjustments | 13.4 | 15.2 | |||||
Non-GAAP provision for income tax | $ | (21.7 | ) | $ | (3.4 | ) | |
GAAP net loss | $ | (24.2 | ) | $ | (82.4 | ) | |
Stock-based compensation expense | 75.2 | 54.4 | |||||
Amortization of developed technology | 9.2 | 3.6 | |||||
Amortization of purchased intangibles | 9.8 | 3.8 | |||||
Acquisition related costs | 12.7 | — | |||||
Restructuring and other exit costs, net | 0.2 | 22.5 | |||||
Loss (gain) on strategic investments and dispositions, net | 5.0 | (2.7 | ) | ||||
Discrete GAAP tax items | (2.3 | ) | — | ||||
Income tax effect of non-GAAP adjustments | 13.4 | 15.2 | |||||
Non-GAAP net income | $ | 99.0 | $ | 14.4 | |||
GAAP diluted net loss per share | $ | (0.11 | ) | $ | (0.38 | ) | |
Stock-based compensation expense | 0.34 | 0.25 | |||||
Amortization of developed technology | 0.04 | 0.02 | |||||
Amortization of purchased intangibles | 0.04 | 0.02 | |||||
Acquisition related costs | 0.07 | — | |||||
Restructuring and other exit costs, net | — | 0.09 | |||||
Loss (gain) on strategic investments and dispositions, net | 0.02 | (0.01 | ) | ||||
Discrete GAAP tax items | (0.01 | ) | — | ||||
Income tax effect of non-GAAP adjustments | 0.06 | 0.07 | |||||
Non-GAAP diluted net income per share | $ | 0.45 | $ | 0.06 | |||
GAAP diluted shares used in per share calculation | 219.6 | 218.6 | |||||
Shares included in non-GAAP net income per share, but excluded from GAAP net loss per share as they would have been anti-dilutive | 2.4 | 3.0 | |||||
Non-GAAP diluted weighted average shares used in per share calculation | 222.0 | 221.6 |