AUTODESK, INC. ANNOUNCES FISCAL 2024 FOURTH QUARTER AND FULL-YEAR RESULTS
- Revenue increased by 11% to $1.5 billion in Q4 and 10% to $5.5 billion for FY 2024.
- GAAP operating margin remained flat at 21%, while non-GAAP operating margin was also flat at 36%.
- Net revenue retention rate was within the range of 100 to 110% on a constant currency basis.
- Total billings decreased by 19% to $1.71 billion in Q4 and by 11% to $5.18 billion for FY 2024.
- Autodesk's focus on lifecycle solutions and generative AI is driving growth and innovation.
- Despite challenges like noise from new transaction models, acquisitions, and FX, underlying revenue is expected to grow more than 10% in fiscal 25.
- Total billings decreased by 19% in Q4 and 11% for FY 2024.
- Cash flow from operating activities decreased to $437 million in Q4 and $1.31 billion for FY 2024.
- Free cash flow decreased to $427 million in Q4 and $1.28 billion for FY 2024.
- Deferred revenue decreased by 7% to $4.26 billion, and unbilled deferred revenue increased to $1.84 billion.
- Total subscriptions increased approximately 785 thousand to 7.53 million at the end of FY 2024.
Insights
The reported growth in fourth quarter revenue by 11 percent and the increase in current remaining performance obligations (RPO) by 13 percent to $4.0 billion are indicative of Autodesk's expanding business and the potential for future revenue recognition. The RPO, which includes deferred revenue and unbilled amounts that will be recognized as revenue in future periods, is a critical metric for investors as it provides visibility into the company's future earnings potential.
Despite the positive growth in revenue and RPO, it is noteworthy that total billings decreased by 19 percent to $1.71 billion and cash flow from operating activities and free cash flow both saw significant decreases compared to the fourth quarter last year. These figures suggest a potential concern regarding the company's liquidity and cash generation efficiency. Moreover, the decrease in deferred revenue by 7 percent to $4.26 billion could be a signal of a slowdown in new business or the timing of revenue recognition.
Autodesk's performance in different geographic areas and product families provides insights into market trends and consumer preferences. The 19 percent revenue growth in the Americas and the 16 percent increase in AEC product family revenue reflect strong market demand in these segments. The company's focus on recurring revenue, which represents 98 percent of the total, demonstrates a strategic shift towards a subscription-based model, which is becoming increasingly common in the software industry for its predictable revenue streams.
The resilience mentioned by Autodesk's CFO and the expected underlying revenue growth of more than 10 percent in fiscal 2025 could be a positive sign for investors, indicating confidence in the company's ability to navigate through market fluctuations and currency impacts.
Autodesk's emphasis on developing lifecycle solutions and leveraging generative design and 3D generative AI speaks to the company's commitment to innovation and staying at the forefront of the industry. The ability to generate 3D representations from images 10 times faster and with higher quality than current 3D AI technologies could give Autodesk a competitive edge and drive adoption of its products.
However, it's important to monitor how these technological advancements translate into actual market performance and whether they can offset the decrease in billings and cash flows reported. The long-term success of these initiatives will depend on customer acceptance and the ability to monetize these innovations effectively.
- Fourth quarter revenue grew 11 percent, and 14 percent at constant exchange rates, to
- Fourth quarter current remaining performance obligations grew 13 percent, to
All growth rates are compared to the fourth quarter and full year of fiscal 2023, respectively, unless otherwise noted. A reconciliation of GAAP to non-GAAP results is provided in the accompanying tables. For definitions, please view the Glossary of Terms later in this document.
Fourth Quarter Fiscal 2024 Financial Highlights
- Total revenue increased 11 percent to
$1.47 billion - GAAP operating margin was 21 percent, flat compared to the prior period;
- Non-GAAP operating margin was 36 percent, flat compared to the prior period;
- GAAP diluted EPS was
$1.31 $2.09 - Cash flow from operating activities was
$437 million $427 million
"We are undertaking a multi-year process to develop lifecycle solutions, powered by shared platform services, and with Autodesk's Data Model at its core. Together, these will enable Autodesk, its customers, and partners, to create more valuable, data-driven, and connected products and services," said Andrew Anagnost, Autodesk president and CEO. "Having led the industry in generative design, we are leading again in 3D generative AI. Our new multimodal foundation models will enable design and make customers to automate low-value and repetitive tasks and generate more high-value, complex designs more rapidly and with much greater consistency. We can already generate 3D representations from images 10 times faster and with vastly higher quality than currently available 3D AI."
"Autodesk remains resilient and underlying demand for our products and services is robust. As a result, revenue grew 14 percent at constant currency in the fourth quarter," said Debbie Clifford, Autodesk CFO. "Adjusting the mid-point of our guidance to exclude noise from the new transaction model, acquisitions, the absence of EBA true-up revenue, and FX, we expect underlying revenue to grow more than 10 percent in fiscal 25."
Fourth Quarter Fiscal 2024 Additional Financial Details
- Total billings decreased 19 percent to
$1.71 billion - Total revenue was
$1.47 billion - Design revenue was
$1.22 billion - Make revenue was
$138 million - Subscription plan revenue was
$1.34 billion - Net revenue retention rate was within the range of 100 to 110 percent on a constant currency basis.
- GAAP operating income was
$315 million $277 million - Total non-GAAP operating income was
$522 million $479 million - GAAP diluted net income per share was
$1.31 $1.35 - Non-GAAP diluted net income per share was
$2.09 $1.86 - Deferred revenue decreased 7 percent to
$4.26 billion $1.84 billion $801 million $6.11 billion $3.98 billion - Cash flow from operating activities was
$437 million $427 million $476 million
Net Revenue by Geographic Area
Three Months | Three Months | Change prior fiscal year | Constant currency | ||||||
(In millions, except percentages) | $ | % | % | ||||||
Net Revenue: | |||||||||
$ 517 | $ 451 | $ 66 | 15 % | * | |||||
Other | 139 | 101 | 38 | 38 % | * | ||||
Total | 656 | 552 | 104 | 19 % | 19 % | ||||
546 | 508 | 38 | 7 % | 11 % | |||||
267 | 258 | 9 | 3 % | 8 % | |||||
Total Net Revenue | $ 1,469 | $ 1,318 | $ 151 | 11 % | 14 % | ||||
____________________ |
* Constant currency data not provided at this level. |
Net Revenue by Product Family
Our product offerings are focused in four primary product families: Architecture, Engineering and Construction ("AEC"), AutoCAD and AutoCAD LT, Manufacturing ("MFG"), and Media and Entertainment ("M&E").
Three Months Ended | Change compared to prior fiscal year | ||||||
(In millions, except percentages) | January 31, | January 31, | $ | % | |||
AEC | $ 696 | $ 602 | $ 94 | 16 % | |||
AutoCAD and AutoCAD LT | 377 | 362 | 15 | 4 % | |||
MFG | 292 | 257 | 35 | 14 % | |||
M&E | 77 | 74 | 3 | 4 % | |||
Other | 27 | 23 | 4 | 17 % | |||
Total Net Revenue | $ 1,469 | $ 1,318 | $ 151 | 11 % | |||
Fiscal 2024 Financial Highlights
- Total billings decreased 11 percent to
$5.18 billion - Total revenue was
$5.50 billion - Design revenue was
$4.65 billion - Make revenue was
$523 million - Subscription plan revenue was
$5.12 billion - Total subscriptions increased approximately 785 thousand from the end of fiscal 2023 to 7.53 million at the end of fiscal 2024. Total subscriptions adjusted for the multi-user trade-in increased approximately 715 thousand from fiscal 2023 to 6.97 million.
- GAAP operating income was
$1.13 billion $989 million - Total non-GAAP operating income was
$1.96 billion $1.79 billion - GAAP diluted net income per share was
$4.19 $3.78 - Non-GAAP diluted net income per share was
$7.60 $6.63 - Cash flow from operating activities decreased to
$1.31 billion $2.07 billion $1.28 billion $2.03 billion
Net Revenue by Geographic Area
Fiscal Year Ended | Fiscal Year Ended | Change compared to prior fiscal year | Constant | ||||||
(In millions, except percentages) | $ | % | % | ||||||
Net Revenue: | |||||||||
$ 1,978 | $ 1,720 | $ 258 | 15 % | * | |||||
Other | 460 | 372 | 88 | 24 % | * | ||||
Total | 2,438 | 2,092 | 346 | 17 % | 17 % | ||||
EMEA | 2,042 | 1,906 | 136 | 7 % | 12 % | ||||
APAC | 1,017 | 1,007 | 10 | 1 % | 6 % | ||||
Total Net Revenue | $ 5,497 | $ 5,005 | $ 492 | 10 % | 13 % | ||||
____________________ |
* Constant currency data not provided at this level. |
Net Revenue by Product Family
Our product offerings are focused in four primary product families: AEC, AutoCAD and AutoCAD LT, MFG, and M&E.
Fiscal Year Ended | Change compared to prior fiscal year | ||||||
(In millions, except percentages) | January 31, 2024 | January 31, 2023 | $ | % | |||
AEC | $ 2,580 | $ 2,278 | $ 302 | 13 % | |||
AutoCAD and AutoCAD LT | 1,462 | 1,387 | 75 | 5 % | |||
MFG | 1,063 | 978 | 85 | 9 % | |||
M&E | 295 | 291 | 4 | 1 % | |||
Other | 97 | 71 | 26 | 37 % | |||
Total Net Revenue | $ 5,497 | $ 5,005 | $ 492 | 10 % | |||
Business Outlook
The following are forward-looking statements based on current expectations and assumptions, and involve risks and uncertainties, some of which are set forth below under "Safe Harbor Statement." Autodesk's business outlook for the first quarter and full-year fiscal 2025 takes into consideration the current economic environment and foreign exchange currency rate environment. A reconciliation between the fiscal 2024 GAAP and non-GAAP estimates is provided below or in the tables later in this document.
First Quarter Fiscal 2025
Q1 FY25 Guidance Metrics | Q1 FY25 |
Revenue (in millions) | |
EPS GAAP | |
EPS non-GAAP (1) |
____________________ |
(1) Non-GAAP earnings per diluted share excludes |
Full-Year Fiscal 2025
FY25 Guidance Metrics | FY25 |
Billings (in millions) |
|
Revenue (in millions) (1) |
|
GAAP operating margin | |
Non-GAAP operating margin (2) | |
EPS GAAP | |
EPS non-GAAP (3) | |
Free cash flow (in millions) (4) |
____________________ |
(1) Excluding the impact of foreign currency exchange rates and hedge gains/losses, revenue guidance range would be approximately 1 percentage point higher. |
(2) Non-GAAP operating margin excludes approximately |
(3) Non-GAAP earnings per diluted share excludes |
(4) Free cash flow is cash flow from operating activities less approximately |
The first quarter and full-year fiscal 2025 outlook assume a projected annual effective tax rate of 21 percent for GAAP and 19 percent for non-GAAP results, respectively. Shifts in geographic profitability continue to impact the annual effective tax rate due to significant differences in tax rates in various jurisdictions. As such, assumptions for the annual effective tax rate are evaluated regularly and may change based on the projected geographic mix of earnings.
Earnings Conference Call and Webcast
Autodesk will host its fourth quarter conference call today at 5 p.m. ET. The live broadcast can be accessed at autodesk.com/investor. A transcript of the opening commentary will also be available following the conference call.
A replay of the broadcast will be available at 7 p.m. ET at autodesk.com/investor. This replay will be maintained on Autodesk's website for at least 12 months.
Investor Presentation Details
An investor presentation, excel financials and other supplemental materials providing additional information can be found at autodesk.com/investor.
Key Performance Metrics
To help better understand our financial performance, we use several key performance metrics including billings, recurring revenue, net revenue retention rate ("NR3") and subscriptions. These metrics are key performance metrics and should be viewed independently of revenue and deferred revenue. These metrics are not intended to be combined with those items. We use these metrics to monitor the strength of our recurring business. We believe these metrics are useful to investors because they can help in monitoring the long-term health of our business. Our determination and presentation of these metrics may differ from that of other companies. The presentation of these metrics is meant to be considered in addition to, not as a substitute for or in isolation from, our financial measures prepared in accordance with GAAP.
Glossary of Terms
Billings: Total revenue plus the net change in deferred revenue from the beginning to the end of the period.
Cloud Service Offerings: Represents individual term-based offerings deployed through web browser technologies or in a hybrid software and cloud configuration. Cloud service offerings that are bundled with other product offerings are not captured as a separate cloud service offering.
Constant Currency (CC) Growth Rates: We attempt to represent the changes in the underlying business operations by eliminating fluctuations caused by changes in foreign currency exchange rates as well as eliminating hedge gains or losses recorded within the current and comparative periods. We calculate constant currency growth rates by (i) applying the applicable prior period exchange rates to current period results and (ii) excluding any gains or losses from foreign currency hedge contracts that are reported in the current and comparative periods.
Design Business: Represents the combination of maintenance, product subscriptions, and all EBAs. Main products include, but are not limited to, AutoCAD, AutoCAD LT, Industry Collections, Revit, Inventor, Maya, and 3ds Max. Certain products, such as our computer aided manufacturing solutions, incorporate both Design and Make functionality and are classified as Design.
Enterprise Business Agreements (EBAs): Represents programs providing enterprise customers with token-based access to a broad pool of Autodesk products over a defined contract term.
Flex: A pay-as-you-go consumption option to pre-purchase tokens to access any product available with Flex for a daily rate.
Free Cash Flow: Cash flow from operating activities minus capital expenditures.
Industry Collections: Autodesk Industry Collections are a combination of products and services that target a specific user objective and support a set of workflows for that objective. Our Industry Collections consist of: Autodesk Architecture, Engineering and Construction Collection, Autodesk Product Design and Manufacturing Collection, and Autodesk Media and Entertainment Collection.
Maintenance Plan: Our maintenance plans provide our customers with a cost effective and predictable budgetary option to obtain the productivity benefits of our new releases and enhancements when and if released during the term of their contracts. Under our maintenance plans, customers are eligible to receive unspecified upgrades when and if available, and technical support. We recognize maintenance revenue over the term of the agreements, generally one year.
Make Business: Represents certain cloud-based product subscriptions. Main products include, but are not limited to, Assemble, Autodesk Build, BIM Collaborate Pro, BuildingConnected, Fusion, and Flow Production Tracking. Certain products, such as Fusion, incorporate both Design and Make functionality and are classified as Make.
Net Revenue Retention Rate (NR3): Measures the year-over-year change in Recurring Revenue for the population of customers that existed one year ago ("base customers"). Net revenue retention rate is calculated by dividing the current quarter Recurring Revenue related to base customers by the total corresponding quarter Recurring Revenue from one year ago. Recurring Revenue is based on USD reported revenue, and fluctuations caused by changes in foreign currency exchange rates and hedge gains or losses have not been eliminated. Recurring Revenue related to acquired companies, one year after acquisition, has been captured as existing customers until such data conforms to the calculation methodology. This may cause variability in the comparison.
Other Revenue: Consists of revenue from consulting, training and other products and services, and is recognized as the products are delivered and services are performed.
Product Subscription: Provides customers a flexible, cost-effective way to access and manage 3D design, engineering, and entertainment software tools. Our product subscriptions currently represent a hybrid of desktop and cloud functionality, which provides a device-independent, collaborative design workflow for designers and their stakeholders.
Recurring Revenue: Consists of the revenue for the period from our traditional maintenance plans, our subscription plan offerings, and certain Other revenue. It excludes subscription revenue related to third-party products. Recurring revenue acquired with the acquisition of a business is captured when total subscriptions are captured in our systems and may cause variability in the comparison of this calculation.
Remaining Performance Obligations (RPO): The sum of total short-term, long-term, and unbilled deferred revenue. Current remaining performance obligations is the amount of revenue we expect to recognize in the next twelve months.
Solution Provider: Solution Provider is the name of our channel partners who serve our customers worldwide. Solution Providers may be resellers, agents, or both, in relation to Autodesk solutions.
Spend: The sum of cost of revenue and operating expenses.
Subscription Plan: Comprises our term-based product subscriptions, cloud service offerings, and EBAs. Subscriptions represent a combined hybrid offering of desktop software and cloud functionality which provides a device-independent, collaborative design workflow for designers and their stakeholders. With subscription, customers can use our software anytime, anywhere, and get access to the latest updates to previous versions.
Subscription Revenue: Includes our cloud-enabled term-based product subscriptions, cloud service offerings, and flexible EBAs.
Total Subscriptions: Consists of subscriptions from our maintenance plans and subscription plan offerings that are active and paid as of the fiscal year end date. For certain cloud service offerings and EBAs, subscriptions represent the monthly average activity reported within the last three months of the fiscal quarter end date. Total subscriptions do not include education offerings, consumer product offerings, and third-party products. Subscriptions acquired with the acquisition of a business are captured once the data conforms to our subscription count methodology and when added, may cause variability in comparison of this calculation.
Unbilled Deferred Revenue: Unbilled deferred revenue represents contractually stated or committed orders under early renewal and multi-year billing plans for subscription, services, and maintenance for which the associated deferred revenue has not been recognized. Under FASB Accounting Standards Codification ("ASC") Topic 606, unbilled deferred revenue is not included as a receivable or deferred revenue on our Consolidated Balance Sheet.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including quotations from management, statements in the paragraphs under "Business Outlook" above statements about our short-term and long-term goals, statements regarding our strategies, market and product positions, performance and results, and all statements that are not historical facts. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: our strategy to develop and introduce new products and services and to move to platforms and capabilities, exposing us to risks such as limited customer acceptance (both new and existing customers), costs related to product defects, and large expenditures; global economic and political conditions, including foreign exchange headwinds, recessionary fears, supply chain disruptions, resulting inflationary pressures and hiring conditions; costs and challenges associated with strategic acquisitions and investments; dependency on international revenue and operations, exposing us to significant international regulatory, economic, intellectual property, collections, currency exchange rate, taxation, political, and other risks, including risks related to the war against
Further information on potential factors that could affect the financial results of Autodesk are included in Autodesk's Form 10-K and subsequent Forms 10-Q, which are on file with the
About Autodesk
Autodesk is changing how the world is designed and made. Our technology spans architecture, engineering, construction, product design, manufacturing, media and entertainment, empowering innovators everywhere to solve challenges big and small. From greener buildings to smarter products to more mesmerizing blockbusters, Autodesk software helps our customers to design and make a better world for all. For more information, visit autodesk.com or follow @autodesk. #MakeAnything
Autodesk uses its investors.autodesk.com website as a means of disclosing material non-public information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings and public conference calls and webcasts.
Autodesk, AutoCAD, AutoCAD LT, BIM 360 and Fusion 360 are registered trademarks of Autodesk, Inc., and/or its subsidiaries and/or affiliates in the
© 2024 Autodesk, Inc. All rights reserved.
Autodesk, Inc. | |||||||
Condensed Consolidated Statements of Operations | |||||||
(In millions, except per share data) | |||||||
Three Months Ended January 31, | Fiscal Year Ended January 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Unaudited) | |||||||
Net revenue: | |||||||
Subscription | $ 1,339 | $ 1,214 | $ 5,116 | $ 4,651 | |||
Maintenance | 14 | 14 | 54 | 65 | |||
Total subscription and maintenance revenue | 1,353 | 1,228 | 5,170 | 4,716 | |||
Other | 116 | 90 | 327 | 289 | |||
Total net revenue | 1,469 | 1,318 | 5,497 | 5,005 | |||
Cost of revenue: | |||||||
Cost of subscription and maintenance revenue | 96 | 90 | 381 | 343 | |||
Cost of other revenue | 20 | 20 | 82 | 79 | |||
Amortization of developed technologies | 14 | 14 | 48 | 58 | |||
Total cost of revenue | 130 | 124 | 511 | 480 | |||
Gross profit | 1,339 | 1,194 | 4,986 | 4,525 | |||
Operating expenses: | |||||||
Marketing and sales | 479 | 439 | 1,823 | 1,745 | |||
Research and development | 352 | 313 | 1,373 | 1,219 | |||
General and administrative | 182 | 155 | 620 | 532 | |||
Amortization of purchased intangibles | 11 | 10 | 42 | 40 | |||
Total operating expenses | 1,024 | 917 | 3,858 | 3,536 | |||
Income from operations | 315 | 277 | 1,128 | 989 | |||
Interest and other income (expense), net | 22 | — | 8 | (43) | |||
Income before income taxes | 337 | 277 | 1,136 | 946 | |||
(Provision) benefit for income taxes | (55) | 16 | (230) | (123) | |||
Net income | $ 282 | $ 293 | $ 906 | $ 823 | |||
Basic net income per share | $ 1.32 | $ 1.36 | $ 4.23 | $ 3.81 | |||
Diluted net income per share | $ 1.31 | $ 1.35 | $ 4.19 | $ 3.78 | |||
Weighted average shares used in computing basic net income per share | 214 | 216 | 214 | 216 | |||
Weighted average shares used in computing diluted net income per share | 216 | 217 | 216 | 218 | |||
Autodesk, Inc. | |||
Condensed Consolidated Balance Sheets | |||
(In millions) | |||
January 31, | January 31, | ||
(Unaudited) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 1,892 | $ 1,947 | |
Marketable securities | 354 | 125 | |
Accounts receivable, net | 876 | 961 | |
Prepaid expenses and other current assets | 457 | 308 | |
Total current assets | 3,579 | 3,341 | |
Long-term marketable securities | 234 | 102 | |
Computer equipment, software, furniture and leasehold improvements, net | 121 | 144 | |
Operating lease right-of-use assets | 224 | 245 | |
Intangible assets, net | 406 | 407 | |
Goodwill | 3,653 | 3,625 | |
Deferred income taxes, net | 1,093 | 1,014 | |
Long-term other assets | 602 | 560 | |
Total assets | $ 9,912 | $ 9,438 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 100 | $ 102 | |
Accrued compensation | 476 | 358 | |
Accrued income taxes | 36 | 33 | |
Deferred revenue | 3,500 | 3,203 | |
Operating lease liabilities | 67 | 85 | |
Other accrued liabilities | 172 | 219 | |
Total current liabilities | 4,351 | 4,000 | |
Long-term deferred revenue | 764 | 1,377 | |
Long-term operating lease liabilities | 275 | 300 | |
Long-term income taxes payable | 168 | 164 | |
Long-term deferred income taxes | 25 | 32 | |
Long-term notes payable, net | 2,284 | 2,281 | |
Long-term other liabilities | 190 | 139 | |
Stockholders' equity: | |||
Common stock and additional paid-in capital | 3,802 | 3,325 | |
Accumulated other comprehensive loss | (234) | (185) | |
Accumulated deficit | (1,713) | (1,995) | |
Total stockholders' equity | 1,855 | 1,145 | |
Total liabilities and stockholders' equity | $ 9,912 | $ 9,438 | |
Autodesk, Inc. | |||
Condensed Consolidated Statements of Cash Flows | |||
(In millions) | |||
Fiscal Year Ended January 31, | |||
2024 | 2023 | ||
(Unaudited) | |||
Operating activities: | |||
Net income | $ 906 | $ 823 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and accretion | 139 | 150 | |
Stock-based compensation expense | 703 | 657 | |
Deferred income taxes | (86) | (277) | |
Lease-related asset impairments | 14 | 34 | |
Other operating activities | (52) | (8) | |
Changes in operating assets and liabilities, net of business combinations: | |||
Accounts receivable | 86 | (247) | |
Prepaid expenses and other assets | (77) | (3) | |
Accounts payable and other liabilities | (12) | (5) | |
Deferred revenue | (316) | 798 | |
Accrued income taxes | 8 | 149 | |
Net cash provided by operating activities | 1,313 | 2,071 | |
Investing activities: | |||
Purchases of marketable securities | (1,110) | (397) | |
Sales of marketable securities | 277 | 152 | |
Maturities of marketable securities | 487 | 298 | |
Purchases of intangible assets | (30) | (6) | |
Business combinations, net of cash acquired | (70) | (96) | |
Capital expenditures | (31) | (40) | |
Other investing activities | (25) | (54) | |
Net cash used in investing activities | (502) | (143) | |
Financing activities: | |||
Proceeds from issuance of common stock, net of issuance costs | 130 | 124 | |
Taxes paid related to net share settlement of equity awards | (187) | (160) | |
Repurchase and retirement of common stock | (795) | (1,101) | |
Repayment of debt | — | (350) | |
Net cash used in financing activities | (852) | (1,487) | |
Effect of exchange rate changes on cash and cash equivalents | (14) | (22) | |
Net (decrease) increase in cash and cash equivalents | (55) | 419 | |
Cash and cash equivalents at beginning of the period | 1,947 | 1,528 | |
Cash and cash equivalents at end of the period | $ 1,892 | $ 1,947 | |
Autodesk, Inc. | |||||||
Reconciliation of GAAP financial measures to non-GAAP financial measures | |||||||
(In millions, except per share data) | |||||||
To supplement our condensed consolidated financial statements presented on a GAAP basis, we provide investors with certain non-GAAP measures including non-GAAP operating margin, non-GAAP income from operations, non-GAAP diluted net income per share, 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 condensed 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 GAAP results reconciled to non-GAAP results included in this release. | |||||||
Three Months Ended January 31, | Fiscal Year Ended January 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Unaudited) | (Unaudited) | ||||||
GAAP operating margin | 21 % | 21 % | 21 % | 20 % | |||
Stock-based compensation expense | 11 % | 12 % | 13 % | 13 % | |||
Amortization of developed technologies | 1 % | 1 % | 1 % | 1 % | |||
Amortization of purchased intangibles | 1 % | 1 % | 1 % | 1 % | |||
Acquisition-related costs | 1 % | — % | 1 % | — % | |||
Lease-related asset impairments and other charges | — % | 1 % | — % | 1 % | |||
Non-GAAP operating margin (1) | 36 % | 36 % | 36 % | 36 % | |||
GAAP income from operations | $ 315 | $ 277 | $ 1,128 | $ 989 | |||
Stock-based compensation expense | 160 | 164 | 703 | 660 | |||
Amortization of developed technologies | 12 | 12 | 43 | 53 | |||
Amortization of purchased intangibles | 11 | 10 | 41 | 40 | |||
Acquisition-related costs | 17 | 3 | 33 | 10 | |||
Lease-related asset impairments and other charges | 7 | 13 | 14 | 33 | |||
Non-GAAP income from operations | $ 522 | $ 479 | $ 1,962 | $ 1,785 | |||
GAAP diluted net income per share | $ 1.31 | $ 1.35 | $ 4.19 | $ 3.78 | |||
Stock-based compensation expense | 0.74 | 0.76 | 3.26 | 3.03 | |||
Amortization of developed technologies | 0.05 | 0.05 | 0.20 | 0.24 | |||
Amortization of purchased intangibles | 0.05 | 0.04 | 0.19 | 0.18 | |||
Acquisition-related costs | 0.08 | 0.02 | 0.15 | 0.05 | |||
Lease-related asset impairments and other charges | 0.03 | 0.06 | 0.06 | 0.15 | |||
Loss on strategic investments and dispositions, net | 0.03 | 0.04 | 0.15 | — | |||
Establishment (release) of valuation allowance on deferred tax assets | 0.07 | (0.18) | 0.07 | (0.18) | |||
Discrete GAAP tax items | (0.07) | 0.15 | (0.15) | 0.13 | |||
Income tax effect of non-GAAP adjustments | (0.20) | (0.43) | (0.52) | (0.75) | |||
Non-GAAP diluted net income per share | $ 2.09 | $ 1.86 | $ 7.60 | $ 6.63 | |||
Net cash provided by operating activities | $ 437 | $ 911 | $ 1,313 | $ 2,071 | |||
Capital expenditures | (10) | (8) | (31) | (40) | |||
Free cash flow | $ 427 | $ 903 | $ 1,282 | $ 2,031 | |||
____________________ |
(1) Totals may not sum due to rounding. |
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SOURCE Autodesk, Inc.
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