AUTODESK, INC. ANNOUNCES FISCAL 2025 SECOND QUARTER RESULTS

Rhea-AI Summary

Autodesk (NASDAQ: ADSK) reported strong fiscal 2025 Q2 results, with revenue growing 12% to $1.51 billion. Key highlights include:

- GAAP operating margin increased 4 percentage points to 23%
- Non-GAAP diluted EPS rose to $2.15 from $1.91
- Cash flow from operations was $212 million, up $77 million
- Current remaining performance obligations grew 11% to $3.9 billion

The company saw broad-based growth across products and regions in AEC and manufacturing. Based on sustained momentum, Autodesk is raising guidance for billings, revenue, EPS, and free cash flow. Management cited the company's ability to capitalize on long-term growth trends in reconstruction and infrastructure as key drivers of performance.

Positive

• Revenue grew 12% year-over-year to $1.51 billion
• GAAP operating margin increased 4 percentage points to 23%
• Non-GAAP diluted EPS rose to $2.15 from $1.91
• Cash flow from operations increased $77 million to $212 million
• Current remaining performance obligations grew 11% to $3.9 billion
• Company is raising guidance for billings, revenue, EPS, and free cash flow

Negative

• Deferred revenue decreased 13% to $3.69 billion

Insights

Financial Analyst

Autodesk's Q2 FY2025 results demonstrate robust financial performance, with revenue growing 12% year-over-year to $1.51 billion. Key highlights include:

• Non-GAAP operating margin improved to 37%, up 1 percentage point
• Non-GAAP diluted EPS increased to $2.15 from $1.91
• Free cash flow rose to $203 million, a significant improvement

The company's strong performance across products and regions, particularly in AEC and manufacturing, indicates resilient demand despite macroeconomic challenges. Raising guidance midpoints for billings, revenue, EPS and free cash flow suggests management's confidence in sustained momentum. The high recurring revenue (97%) and net revenue retention rate within 100-110% underscore Autodesk's stable business model and customer loyalty.

Tech Industry Expert

Autodesk's Q2 results reflect its successful adaptation to industry trends. The company's focus on delivering connected solutions aligns well with the increasing digitalization in design and engineering fields. The 25% growth in 'Make' revenue highlights Autodesk's expanding footprint in manufacturing and construction execution, beyond traditional design software.

The smooth launch of the new transaction model in North America is a positive indicator for future growth. This model likely offers more flexibility to customers, potentially driving higher adoption and usage. The strong performance in both AEC and manufacturing segments suggests Autodesk is effectively capitalizing on infrastructure and reconstruction trends, positioning it well for long-term growth in these sectors.

Market Research Analyst

Autodesk's Q2 performance outpaces industry averages, indicating market share gains. The company's diverse geographic revenue stream (44% Americas, 38% EMEA, 18% APAC) provides resilience against regional economic fluctuations. The 13% constant currency growth in EMEA and APAC, despite global challenges, is particularly impressive.

The 14% growth in AEC revenue suggests Autodesk is benefiting from increased infrastructure spending globally. The 16% growth in manufacturing revenue indicates strong adoption of Autodesk's solutions in Industry 4.0 initiatives. The company's ability to maintain growth across all product families demonstrates its well-rounded portfolio and effective cross-selling strategies, positioning it favorably against competitors in the CAD/CAM market.

- Raising the mid-points of billings, revenue, earnings per share, and free cash flow guidance ranges.
- Second quarter revenue grew 12 percent, and 13 percent at constant exchange rates, to $1.5 billion.
- Current remaining performance obligations were $3.9 billion, up 11 percent year over year.

SAN FRANCISCO, Aug. 29, 2024 /PRNewswire/ -- Autodesk, Inc. (NASDAQ: ADSK) today reported financial results for the second quarter of fiscal 2025.

All growth rates are compared to the second quarter of fiscal 2024, 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.

Second Quarter Fiscal 2025 Financial Highlights

• Total revenue increased 12 percent to $1.51 billion;
• GAAP operating margin was 23 percent, up 4 percentage points;
• Non-GAAP operating margin was 37 percent, up 1 percentage point;
• GAAP diluted EPS was $1.30; Non-GAAP diluted EPS was $2.15;
• Cash flow from operating activities was $212 million; free cash flow was $203 million.

"Autodesk continues to generate strong and sustained momentum both in absolute terms and relative to peers. Our success is fueled by our ability to capitalize on the attractive long term-growth trends we're seeing, including increases in global reconstruction and infrastructure. This is supported by our focused strategy to deliver more valuable and connected solutions for our customers, and by the proven durability of our business," said Andrew Anagnost, Autodesk president and CEO. "Disciplined execution and capital deployment is driving even greater operational velocity and efficiency within Autodesk and will underpin the mechanical build of revenue and free cash flow over the next few years and GAAP margins among the best in the industry. In combination, we believe these factors will deliver sustainable shareholder value over many years."

"We generated broad-based growth across products and regions in architecture, engineering and construction (AEC) and manufacturing in the second quarter. Overall, macroeconomic, policy, and geopolitical challenges, and the underlying momentum of the business, were consistent with the last few quarters," said Betsy Rafael, Autodesk interim CFO. "Given our sustained momentum in the second quarter, and smooth launch of the new transaction model in North America, we are raising the mid-points of our billings, revenue, earnings per share, and free cash flow guidance ranges."

Additional Financial Details

• Total billings increased 13 percent to $1.24 billion.
• Total revenue was $1.51 billion, an increase of 12 percent as reported, and 13 percent on a constant currency basis. Recurring revenue represents 97 percent of total.
• Design revenue was $1.26 billion, an increase of 9 percent as reported, and 10 percent on a constant currency basis. On a sequential basis, Design revenue increased 5 percent as reported and on a constant currency basis.
• Make revenue was $162 million, an increase of 25 percent as reported and on a constant currency basis. On a sequential basis, Make revenue increased 12 percent as reported and on a constant currency basis.
• Subscription plan revenue was $1.41 billion, an increase of 11 percent as reported, and 12 percent on a constant currency basis. On a sequential basis, subscription plan revenue increased 6 percent as reported and on a constant currency basis.
• Net revenue retention rate remained within the range of 100 to 110 percent, on a constant currency basis.
• GAAP operating income was $343 million, compared to $262 million. GAAP operating margin was 23 percent, up 4 percentage points.
• Total non-GAAP operating income was $560 million, compared to $489 million. Non-GAAP operating margin was 37 percent, up 1 percentage point.
• GAAP diluted net income per share was $1.30, compared to $1.03.
• Non-GAAP diluted net income per share was $2.15, compared to $1.91.
• Deferred revenue decreased 13 percent to $3.69 billion. Unbilled deferred revenue was $2.17 billion, an increase of $1.18 billion. Remaining performance obligations ("RPO") increased 12 percent to $5.86 billion. Current RPO increased 11 percent to $3.90 billion.
• Cash flow from operating activities was $212 million, an increase of $77 million. Free cash flow was $203 million, an increase of $75 million.

Second Quarter Fiscal 2025 Business Highlights

Net Revenue by Geographic Area

	Three Months Ended July 31, 2024		Three Months Ended July 31, 2023		Change compared to prior fiscal year				Constant currency change compared to prior fiscal year
(In millions, except percentages)					$		%		%
Net Revenue:
Americas
U.S	$                    543		$                    485		$     58		12 %		*
Other Americas	119		104		15		14 %		*
Total Americas	662		589		73		12 %		13 %
EMEA	570		506		64		13 %		13 %
APAC	273		250		23		9 %		13 %
Total Net Revenue	$                 1,505		$                 1,345		$   160		12 %		13 %

 

____________________
*	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 July 31, 2024		Three Months Ended July 31, 2023		Change compared to prior fiscal year
(In millions, except percentages)					$		%
AEC	$                       713		$                     627		$         86		14 %
AutoCAD andAutoCADLT	389		364		25		7 %
MFG	296		256		40		16 %
M&E	77		74		3		4 %
Other	30		24		6		25 %
Total Net Revenue	$                   1,505		$                 1,345		$       160		12 %

 

Business Outlook

The following are forward-looking statements based on current expectations and assumptions, and involve risks and uncertainties, some of which are set forth below under "Safe Harbor Statement."  Autodesk's business outlook for the third quarter and full-year fiscal 2025 considers the current economic environment and foreign exchange currency rate environment. A reconciliation between the fiscal 2025 GAAP and non-GAAP estimates is provided below or in the tables following this press release.

Third Quarter Fiscal 2025

Q3 FY25 Guidance Metrics	Q3 FY25 (ending October 31, 2024)
Revenue (in millions)	$1,555 - $1,570
EPS GAAP	$1.21 - $1.27
EPS non-GAAP (1)	$2.08 - $2.14

 

____________________

(1) Non-GAAP earnings per diluted share excludes $0.83 related to stock-based compensation expense, $0.16 for the amortization of both purchased intangibles and developed technologies, and $0.05 for acquisition-related costs, partially offset by ($0.17) related to GAAP-only tax charges.

 

Full Year Fiscal 2025

FY25 Guidance Metrics	FY25 (ending January 31, 2025)
Billings (in millions)	$5,880 - $5,980 Up 13% - 15%
Revenue (in millions) (1)	$6,080 - $6,130 Up approx. 11%
GAAP operating margin	21% - 22%
Non-GAAP operating margin (2)	35% - 36%
EPS GAAP	$4.88 - $5.01
EPS non-GAAP (3)	$8.18 - $8.31
Free cash flow (in millions) (4)	$1,450 - $1,500

 

____________________

(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 11% related to stock-based compensation expense, approximately 2% for the amortization of both purchased intangibles and developed technologies, and approximately 1% related to acquisition-related costs.

(3) Non-GAAP earnings per diluted share excludes $3.14 related to stock-based compensation expense, $0.60 for the amortization of both purchased intangibles and developed technologies, $0.22 related to acquisition-related costs, and $0.03 related to losses on strategic investments, partially offset by ($0.69) related to GAAP-only tax charges.

(4) Free cash flow is cash flow from operating activities less approximately $30 million of capital expenditures.

 

The third quarter and full-year fiscal 2025 outlook assume a projected annual effective tax rate of 20 percent and 19 percent for GAAP and 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. Therefore, 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 second 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 and net revenue retention rate. 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, 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 primarily serve our new transaction model customers worldwide. Solution Providers may also be resellers 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.  

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 Condensed 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 changes in monetary and fiscal policy, foreign exchange headwinds, recessionary fears, supply chain disruptions, resulting inflationary pressures and hiring conditions; geopolitical tension and armed conflicts, extreme weather events, and the COVID-19 pandemic; costs and challenges associated with strategic acquisitions and investments; our ability to successfully implement and expand our transaction model; 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 Ukraine launched by Russia and our exit from Russia and the current conflict between Israel and Hamas; inability to predict subscription renewal rates and their impact on our future revenue and operating results; existing and increased competition and rapidly evolving technological changes; fluctuation of our financial results, key metrics and other operating metrics; our transition from up front to annual billings for multi-year contracts; deriving a substantial portion of our net revenue from a small number of solutions, including our AutoCAD-based software products and collections; any failure to successfully execute and manage initiatives to realign or introduce new business and sales initiatives, including our new transaction model for Flex; net revenue, billings, earnings, cash flow, or new or existing subscriptions shortfalls; social and ethical issues relating to the use of artificial intelligence in our offerings; our ability to maintain security levels and service performance meeting the expectations of our customers, and the resources and costs required to avoid unanticipated downtime and prevent, detect and remediate performance degradation and security breaches; security incidents or other incidents compromising the integrity of our or our customers' offerings, services, data, or intellectual property; reliance on third parties to provide us with a number of operational and technical services as well as software; our highly complex software, which may contain undetected errors, defects, or vulnerabilities; increasing regulatory focus on privacy issues and expanding laws; governmental export and import controls that could impair our ability to compete in international markets or subject us to liability if we violate the controls; protection of our intellectual property rights and intellectual property infringement claims from others; the government procurement process; fluctuations in currency exchange rates; our debt service obligations; and our investment portfolio consisting of a variety of investment vehicles that are subject to interest rate trends, market volatility, and other economic factors. Our estimates as to tax rate are based on current tax law, including current interpretations of the Tax Cuts and Jobs Act, and could be affected by changing interpretations of that Act, as well as additional legislation and guidance around that Act.

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 U.S. Securities and Exchange Commission. Autodesk disclaims any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

About Autodesk

The world's designers, engineers, builders, and creators trust Autodesk to help them design and make anything. From the buildings we live and work in, to the cars we drive and the bridges we drive over. From the products we use and rely on, to the movies and games that inspire us. Autodesk's Design and Make Platform unlocks the power of data to accelerate insights and automate processes, empowering our customers with the technology to create the world around us and deliver better outcomes for their business and the planet. 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 trademarks of Autodesk, Inc., and/or its subsidiaries and/or affiliates in the USA and/or other countries. All other brand names, product names or trademarks belong to their respective holders. Autodesk reserves the right to alter product and service offerings, and specifications and pricing at any time without notice, and is not responsible for typographical or graphical errors that may appear in this document.
© 2024 Autodesk, Inc. All rights reserved.

 

Autodesk, Inc
Condensed Consolidated Statements of Operations
(In millions, except per share data)
	Three Months Ended July 31,				Six Months Ended July 31,
	2024		2023		2024		2023
	(Unaudited)				(Unaudited)
Net revenue:
Subscription	$           1,408		$           1,270		$          2,738		$           2,463
Maintenance	11		14		22		28
Total subscription and maintenance revenue	1,419		1,284		2,760		2,491
Other	86		61		162		123
Total net revenue	1,505		1,345		2,922		2,614
Cost of revenue:
Cost of subscription and maintenance revenue	100		95		200		191
Cost of other revenue	18		21		38		41
Amortization of developed technologies	22		11		39		22
Total cost of revenue	140		127		277		254
Gross profit	1,365		1,218		2,645		2,360
Operating expenses:
Marketing and sales	480		449		949		905
Research and development	368		355		714		682
General and administrative	161		141		316		273
Amortization of purchased intangibles	13		11		24		21
Total operating expenses	1,022		956		2,003		1,881
Income from operations	343		262		642		479
Interest and other income (expense), net	9		(4)		19		—
Income before income taxes	352		258		661		479
Provision for income taxes	(70)		(36)		(127)		(96)
Net income	$              282		$              222		$             534		$              383
Basic net income per share	$             1.31		$             1.04		$            2.48		$             1.79
Diluted net income per share	$             1.30		$             1.03		$            2.46		$             1.77
Weighted average shares used in computing basic net income per share	216		214		215		214
Weighted average shares used in computing diluted net income per share	217		215		217		216

 

Autodesk, Inc
Condensed Consolidated Balance Sheets
(In millions)
	July 31, 2024		January 31, 2024
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$                  1,513		$                   1,892
Marketable securities	365		354
Accounts receivable, net	402		876
Prepaid expenses and other current assets	478		457
Total current assets	2,758		3,579
Long-term marketable securities	231		234
Computer equipment, software, furniture and leasehold improvements, net	116		121
Operating lease right-of-use assets	205		224
Intangible assets, net	609		406
Goodwill	4,253		3,653
Deferred income taxes, net	1,129		1,093
Long-term other assets	659		602
Total assets	$                  9,960		$                   9,912
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$                     174		$                      100
Accrued compensation	361		476
Accrued income taxes	48		36
Deferred revenue	3,228		3,500
Operating lease liabilities	67		67
Current portion of long-term notes payable, net	300		—
Other accrued liabilities	159		172
Total current liabilities	4,337		4,351
Long-term deferred revenue	464		764
Long-term operating lease liabilities	250		275
Long-term income taxes payable	183		168
Long-term deferred income taxes	36		25
Long-term notes payable, net	1,986		2,284
Long-term other liabilities	230		190
Stockholders' equity:
Common stock and additional paid-in capital	4,009		3,802
Accumulated other comprehensive loss	(249)		(234)
Accumulated deficit	(1,286)		(1,713)
Total stockholders' equity	2,474		1,855
Total liabilities and stockholders' equity	$                  9,960		$                   9,912

 

Autodesk, Inc
Condensed Consolidated Statements of Cash Flows
(In millions)
	Six Months Ended July 31,
	2024		2023
	(Unaudited)
Operating activities:
Net income	$                534		$              383
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	86		66
Stock-based compensation expense	316		362
Amortization of costs to obtain a contract with a customer (1)	85		63
Deferred income taxes	(40)		(65)
Lease-related asset impairments	—		7
Other	(5)		(33)
Changes in operating assets and liabilities, net of business combinations:
Accounts receivable	477		559
Prepaid expenses and other assets (1)	(167)		(95)
Accounts payable and other liabilities (1)	(30)		(106)
Deferred revenue	(577)		(350)
Accrued income taxes	27		67
Net cash provided by operating activities	706		858
Investing activities:
Purchases of marketable securities	(431)		(687)
Sales and maturities of marketable securities	430		339
Capital expenditures	(16)		(16)
Purchases of intangible assets	(39)		(10)
Business combinations, net of cash acquired	(801)		(26)
Other investing activities	(7)		(18)
Net cash used in investing activities	(864)		(418)
Financing activities:
Proceeds from issuance of common stock, net of issuance costs	71		71
Taxes paid related to net share settlement of equity awards	(172)		(120)
Repurchases of common stock	(120)		(616)
Net cash used in financing activities	(221)		(665)
Effect of exchange rate changes on cash and cash equivalents	—		(8)
Net decrease in cash and cash equivalents	(379)		(233)
Cash and cash equivalents at beginning of period	1,892		1,947
Cash and cash equivalents at end of period	$             1,513		$            1,714
Supplemental cash flow disclosure:
Non-cash financing activities:
Fair value of common stock issued to settle liability-classified restricted common stock	$                    3		$                   9

 

____________________

(1) During the quarter ended April 30, 2024, the Company changed its presentation of the amortization of costs capitalized to obtain a contract with a customer in our Condensed Consolidated Statements of Cash Flows. Amortization of costs capitalized to obtain a contract with a customer were previously presented in "Changes in operating assets and liabilities, net of business combinations" and are now presented in "Adjustments to reconcile net income to net cash provided by operating activities." Accordingly, prior period amounts have been reclassified to conform to the current period presentation. These reclassifications did not impact total net cash provided by operating activities. The effect of the change on the Condensed Consolidated Statement of Cash Flows for the six months ended July 31, 2023 was $63 million.

 

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 July 31,				Six Months Ended July 31,
	2024		2023		2024		2023
	(Unaudited)				(Unaudited)
GAAP operating margin	23 %		19 %		22 %		18 %
Stock-based compensation expense	11 %		15 %		11 %		14 %
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 %		— %		— %
Non-GAAP operating margin (1)	37 %		36 %		36 %		34 %
GAAP income from operations	$                343		$            262		$            642		$           479
Stock-based compensation expense	170		197		319		362
Amortization of developed technologies	21		11		37		20
Amortization of purchased intangibles	13		10		24		20
Acquisition-related costs	13		2		28		5
Lease-related asset impairments and other charges	—		7		—		7
Non-GAAP income from operations	$                560		$           489		$         1,050		$           893
GAAP diluted net income per share	$               1.30		$           1.03		$           2.46		$          1.77
Stock-based compensation expense	0.78		0.92		1.47		1.68
Amortization of developed technologies	0.10		0.05		0.17		0.09
Amortization of purchased intangibles	0.06		0.05		0.11		0.09
Acquisition-related costs	0.06		0.01		0.13		0.02
Lease-related asset impairments and other charges	—		0.03		—		0.03
Loss on strategic investments and dispositions, net	0.03		0.07		0.03		0.07
Establishment of valuation allowance on deferred tax assets	—		—		0.02		—
Discrete GAAP tax items	0.01		(0.09)		(0.06)		(0.12)
Income tax effect of non-GAAP adjustments	(0.19)		(0.16)		(0.32)		(0.19)
Non-GAAP diluted net income per share	$               2.15		$           1.91		$           4.01		$          3.44
Net cash provided by operating activities	$                212		$            135		$            706		$           858
Capital expenditures	(9)		(7)		(16)		(16)
Free cash flow	$                203		$            128		$            690		$           842

 

____________________
(1)	Totals may not sum due to rounding.

 

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SOURCE Autodesk, Inc.

FAQ

What was Autodesk's (ADSK) revenue growth in Q2 fiscal 2025?

Autodesk's revenue grew 12% year-over-year to $1.51 billion in Q2 fiscal 2025.

How much did Autodesk's (ADSK) GAAP operating margin improve in Q2 fiscal 2025?

Autodesk's GAAP operating margin increased by 4 percentage points to 23% in Q2 fiscal 2025.

What was Autodesk's (ADSK) non-GAAP diluted EPS in Q2 fiscal 2025?

Autodesk's non-GAAP diluted EPS was $2.15 in Q2 fiscal 2025, up from $1.91 in the same quarter last year.

How much did Autodesk's (ADSK) current remaining performance obligations grow in Q2 fiscal 2025?

Autodesk's current remaining performance obligations grew 11% year-over-year to $3.9 billion in Q2 fiscal 2025.

Is Autodesk (ADSK) changing its guidance after Q2 fiscal 2025 results?

Yes, Autodesk is raising the mid-points of its guidance ranges for billings, revenue, earnings per share, and free cash flow based on sustained momentum in Q2 fiscal 2025.