Strong ARR Growth Highlights Autodesk Third Quarter Results
SAN RAFAEL, Calif., Nov. 28, 2017 /PRNewswire/ -- Autodesk, Inc. (NASDAQ: ADSK) today reported financial results for the third quarter of fiscal 2018.
Third Quarter Fiscal 2018
-- Subscription plan (formerly known as new model) annualized recurring
revenue (ARR) was $924 million and increased 106 percent compared to the
third quarter last year as reported, and 108 percent on a constant
currency basis.
-- Total ARR was $1.90 billion, an increase of 24 percent compared to the
third quarter last year as reported, and 25 percent on a constant
currency basis.
-- Subscription plan subscriptions increased 307,000 from the second
quarter of fiscal 2018 to 1.9 million at the end of the third quarter.
Subscription plan subscriptions benefited from 110,000 maintenance
subscribers that converted to product subscription under the
maintenance-to-subscription program.
-- Total subscriptions increased 146,000 from the second quarter of fiscal
2018 to 3.6 million at the end of the third quarter.
-- Deferred revenue increased 15 percent to $1.76 billion, compared to
$1.53 billion in the third quarter last year. Unbilled deferred revenue
at the end of the third quarter was $148 million.
-- Revenue was $515 million, an increase of 5 percent compared to the third
quarter last year as reported, and 6 percent on a constant currency
basis.
-- Total GAAP spend (cost of revenue plus operating expenses) was $615
million, an increase of 1 percent compared to the third quarter last
year.
-- Total non-GAAP spend was $542 million, an increase of 2 percent compared
to the third quarter last year. A reconciliation of GAAP to non-GAAP
results is provided in the accompanying tables.
-- GAAP diluted net loss per share was $(0.55), compared to GAAP diluted
net loss per share of $(0.64) in the third quarter last year.
-- Non-GAAP diluted net loss per share was $(0.12), compared to non-GAAP
diluted net loss per share of $(0.18) in the third quarter last year.
"We are pleased with another solid quarter of execution and progress on our business model transition," said Andrew Anagnost, Autodesk president and CEO. "We're experiencing healthy trends in several key transition metrics, including ARR and deferred revenue growth, as customers continue to embrace our new subscription offerings. As we enter the growth phase of our model transition, we need to re-balance investments to focus on our strategic priorities. This includes divesting from some areas and increasing our investment in others. We're taking this restructuring action from a position of strength. This is not a cost reduction activity as we maintain our commitment to keep total non-GAAP spend flat this year and next."
"Our third quarter results mark our return to revenue growth as we reached the one year mark of subscription-only sales," said Scott Herren, Autodesk CFO. "We are excited to have reached a significant milestone where the base of subscription plan subscriptions has surpassed the base of maintenance plan subscriptions for the first time. We are also experiencing early success with the maintenance-to-subscription program, which is a winning combination for both our customers and Autodesk. Our solid third quarter results and stable macro operating environment keep us confident in our near-term and long-term goals."
Third Quarter Operational Overview
Subscription plan ARR was $924 million and increased 106 percent compared to the third quarter last year as reported, and 108 percent on a constant currency basis. Subscription plan ARR includes $70 million related to the maintenance-to-subscription program. Maintenance plan ARR was $978 million and decreased 10 percent compared to the third quarter last year as reported, and on a constant currency basis. Total ARR for the third quarter increased 24 percent to $1.90 billion compared to the third quarter last year as reported, and 25 percent on a constant currency basis.
Subscription plan subscriptions (product, EBA, and cloud) were 1.90 million, a net increase of 307,000 from the second quarter of fiscal 2018, led by new product subscriptions and 110,000 product subscriptions that migrated from maintenance plan subscriptions. Maintenance plan subscriptions were 1.69 million, a net decrease of 161,000 from the second quarter of fiscal 2018, which includes the 110,000 that migrated to product subscription. Total subscriptions were 3.59 million, a net increase of 146,000 from the second quarter of fiscal 2018.
Total recurring revenue in the third quarter was 92 percent of total revenue compared to 78 percent of total revenue in the third quarter last year.
Revenue in the Americas was $215 million, an increase of 1 percent compared to the third quarter last year. Revenue in EMEA was $205 million, an increase of 8 percent compared to the third quarter last year as reported, and 10 percent on a constant currency basis. Revenue in APAC was $95 million, an increase of 12 percent compared to the third quarter last year as reported, and 10 percent on a constant currency basis.
Restructuring
Autodesk today announced a restructuring plan to focus on the company's strategic priorities of completing the subscription transition; digitizing the company; and re-imagining manufacturing, construction, and production. Through the restructuring, Autodesk seeks to streamline the organization and re-balance resources to better align with the company's priorities. By realigning its investments, Autodesk is positioning itself to meet its long-term goals, including keeping non-GAAP spend flat in fiscal 2019.
The company anticipates taking a pre-tax restructuring charge in the range of $135 million to $149 million. Approximately $91 million to $100 million in pre-tax charges will be taken in the fourth quarter of fiscal 2018. The remaining charge will be taken in fiscal 2019.
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 fourth quarter and full year fiscal 2018 assumes, among other things, a continuation of the current economic environment and foreign exchange currency rate environment. A reconciliation between the fiscal 2018 GAAP and non-GAAP estimates is provided below or in the tables following this press release.
Fourth Quarter Fiscal 2018
Q4 FY18 Guidance Metrics Q4 FY18 (ending January
31, 2018)
Revenue (in millions) $537 - $547
EPS GAAP ($1.18) - ($1.11)
EPS non-GAAP (1) ($0.14) - ($0.10)
(1) Non-GAAP earnings per diluted share excludes $0.43
related to restructuring and other facility exit costs,
$0.29 related to stock-based compensation expense,
between $0.28 and $0.25 related to GAAP-only tax
charges, and $0.04 for the amortization of acquisition-
related intangibles.
Full Year Fiscal 2018
FY18 Guidance Metrics FY18 (ending January 31,
2018)
Revenue (in millions) (1) $2,040 - $2,050
GAAP spend growth (cost of revenue
plus operating expenses) Approx. +1%
Non-GAAP spend growth (cost of
revenue plus operating expenses)
(2) Approx. flat
EPS GAAP ($2.98) - ($2.93)
EPS non-GAAP (3) ($0.53) - ($0.49)
Net subscription additions 625k - 650k
Total ARR 24% - 26%
(1) Excluding the impact of foreign
currency exchange rates and hedge
gains/losses, revenue guidance
would be $2.045 -$2.055 billion.
(2) Non-GAAP spend excludes $248
million related to stock-based
compensation expense, $96 million
related to restructuring and other
facility exit costs, $36 million
for the amortization of
acquisition-related intangibles,
and $22 million related to CEO
transition costs.
(3) Non-GAAP earnings per diluted
share excludes $1.13 related to
stock-based compensation expense,
between $0.57 and $0.56 related to
GAAP-only tax charges, $0.44
related to restructuring and other
facility exit costs, $0.17 for the
amortization of acquisition-
related intangibles, $0.10 related
to CEO transition costs, and $0.04
related to losses on strategic
investments and dispositions.
The fourth quarter and full year fiscal 2018 outlook assume a projected annual effective tax rate of (15) percent and 26 percent for GAAP and non-GAAP results, respectively. Assumptions for the annual effective tax rate are regularly evaluated and may change based on the projected geographic mix of earnings. At this stage of the business model transition, small shifts in geographic profitability significantly impact the annual effective tax rate.
Earnings Conference Call and Webcast
Autodesk will host its second quarter conference call today at 5:00 p.m. ET. The live broadcast can be accessed at http://www.autodesk.com/investor. Supplemental financial information and prepared remarks for the conference call will be posted to the investor relations section of Autodesk's website simultaneously with this press release.
A replay of the broadcast will be available at 7:00 p.m. ET at http://www.autodesk.com/investor. This replay will be maintained on Autodesk's website for at least 12 months.
Glossary of Terms
Annualized Recurring Revenue (ARR): Represents the annualized value of our average monthly recurring revenue for the preceding three months. "Maintenance plan ARR" captures ARR relating to traditional maintenance attached to perpetual licenses. "Subscription plan ARR" captures ARR relating to term-based product subscriptions, cloud service offerings, and flexible enterprise business arrangements. Refer to the definition of recurring revenue below for more details on what is included within ARR. Recurring revenue acquired with the acquisition of a business may cause variability in the comparison of this calculation.
ARR is currently one of our key performance metrics to assess the health and trajectory of our business. ARR should be viewed independently of revenue and deferred revenue as ARR is a performance metric and is not intended to be combined with any of these items.
Constant Currency (CC) Growth Rates: 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.
Enterprise Business Agreements (EBAs): These represent programs providing enterprise customers with token-based access or a fixed maximum number of seats to a broad pool of Autodesk products over a defined contract term.
License and Other Revenue: Represents (1) perpetual license revenue and (2) other revenue. Perpetual license revenue includes software license revenue from the sale of perpetual licenses, and Creative Finishing. Other revenue includes revenue such as standalone consulting and training, and is recognized over time as the services are performed.
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 between one and three years.
Recurring Revenue: Consists of the revenue for the period from our traditional maintenance plans and revenue from our subscription plan offerings. It excludes subscription revenue related to consumer product offerings, select Creative Finishing product offerings, education offerings, and 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.
Subscription Plan: Comprises our term-based product subscriptions, cloud service offerings, and enterprise business agreements (EBAs). Subscriptions represent a hybrid of desktop and SaaS 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 subscription fees from term-based product subscriptions, flexible enterprise business arrangements and all other services as part of a bundled subscription agreement accounted for as a single unit of accounting. (i.e. cloud services, maintenance, and consulting).
Total Subscriptions: Consists of subscriptions from our maintenance plans and subscription plan offerings that are active and paid as of the quarter end date. For certain cloud service offerings and flexible enterprise business arrangements, subscriptions represent the monthly average activity reported within the last three months of the quarter end date. Total subscriptions do not include education offerings, consumer product offerings, select Creative Finishing product offerings, Autodesk Buzzsaw, Autodesk Constructware, 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 the comparison of this calculation.
Unbilled deferred revenue: Unbilled deferred revenue represents contractually stated or committed orders under multi-year billing plans for subscription, services, license and maintenance for which the associated revenue has not been recognized and the customer has not been invoiced. Unbilled deferred revenue is not included on our Consolidated Balance Sheet until invoiced to the customer.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding the effectiveness of efforts to maintain our spend, statements in the paragraphs under "Restructuring" and "Business Outlook" above, other statements about our short-term and long-term targets, statements regarding the impacts and results of our business model transition, expectations regarding the transition of product offerings to subscription and acceptance by our customers and partners of subscriptions, expectations for subscriptions and ARR, statements about the expansion of our market opportunity, statements about our restructuring activities, and other statements regarding our strategies, market and product positions, performance, and results. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: failure to achieve our revenue and profitability objectives; failure to successfully manage transitions to new business models and markets; failure to maintain cost reductions or otherwise control our expenses; the success of our restructuring activities; difficulty in predicting revenue from new businesses and the potential impact on our financial results from changes in our business models; general market, political, economic, and business conditions; any imposition of new tariffs or trade barriers; the impact of non-cash charges on our financial results; fluctuation in foreign currency exchange rates; the success of our foreign currency hedging program; our performance in particular geographies, including emerging economies; the ability of governments around the world to meet their financial and debt obligations, and finance infrastructure projects; weak or negative growth in the industries we serve; slowing momentum in subscription billings or revenues; difficulties encountered in integrating new or acquired businesses and technologies; the inability to identify and realize the anticipated benefits of acquisitions; the financial and business condition of our reseller and distribution channels; dependence on and the timing of large transactions; failure to achieve sufficient sell-through in our channels for new or existing products; pricing pressure; unexpected fluctuations in our annual effective tax rate; the timing and degree of expected investments in growth and efficiency opportunities; changes in the timing of product releases and retirements; and any unanticipated accounting charges.
Further information on potential factors that could affect the financial results of Autodesk are included in Autodesk's Annual Report on Form 10-K for the fiscal year ended January 31, 2017 and Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2017, 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
Autodesk makes software for people who make things. If you've ever driven a high-performance car, admired a towering skyscraper, used a smartphone, or watched a great film, chances are you've experienced what millions of Autodesk customers are doing with our software. Autodesk gives you the power to make anything. For more information visit autodesk.com or follow @autodesk.
Autodesk, AutoCAD, AutoCAD LT, BIM 360 and Fusion 360 are registered 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.
© 2017 Autodesk, Inc. All rights reserved.
Autodesk, Inc.
Condensed Consolidated Statements of Operations (1)
(In millions, except per share data)
Three Months Ended Nine Months Ended
October 31, October 31,
2017 2016 2017 2016
---- ---- ---- ----
(Unaudited)
Net revenue:
Maintenance $244.4 $273.2 $769.8 $835.1
Subscription 231.1 112.4 600.6 299.7
----- ----- ----- -----
Total maintenance and
subscription revenue 475.5 385.6 1,370.4 1,134.8
License and other 39.8 104.0 132.4 417.4
---- ----- ----- -----
Total net revenue 515.3 489.6 1,502.8 1,552.2
Cost of revenue:
Cost of maintenance and
subscription revenue 53.9 46.8 161.6 140.2
Cost of license and other
revenue 19.6 24.3 56.0 86.8
Amortization of developed
technology 4.0 10.4 12.7 32.0
--- ---- ---- ----
Total cost of revenue 77.5 81.5 230.3 259.0
---- ---- ----- -----
Gross profit 437.8 408.1 1,272.5 1,293.2
Operating expenses:
Marketing and sales 272.5 255.0 785.8 738.9
Research and development 191.8 192.6 573.3 579.1
General and administrative 68.8 70.4 225.1 213.7
Amortization of purchased
intangibles 4.7 6.8 15.3 22.5
Restructuring (benefits)
charges and other facility
exit costs, net - 3.2 0.2 71.5
--- --- --- ----
Total operating expenses 537.8 528.0 1,599.7 1,625.7
----- ----- ------- -------
Loss from operations (100.0) (119.9) (327.2) (332.5)
Interest and other expense,
net (11.2) (9.4) (31.8) (23.1)
----- ---- ----- -----
Loss before income taxes (111.2) (129.3) (359.0) (355.6)
Provision for income taxes (8.6) (13.5) (34.4) (53.1)
---- ----- ----- -----
Net loss $(119.8) $(142.8) $(393.4) $(408.7)
======= ======= ======= =======
Basic net loss per share $(0.55) $(0.64) $(1.79) $(1.83)
====== ====== ====== ======
Diluted net loss per share $(0.55) $(0.64) $(1.79) $(1.83)
====== ====== ====== ======
Weighted average shares used
in computing basic net loss
per share 219.6 222.3 219.7 223.3
===== ===== ===== =====
Weighted average shares used
in computing diluted net
loss per share 219.6 222.3 219.7 223.3
===== ===== ===== =====
(1) In the first quarter of
fiscal 2018, in order to improve
the transparency of our revenue
reporting, we updated our
Condensed Consolidated Statement
of Operations to include three
lines of revenue: maintenance
revenue, subscription revenue,
and license and other revenue.
In this format, all subscription
revenue is reported in the
subscription line and all
maintenance revenue is reported
in the maintenance line. All
remaining non-recurring revenue
is reported as license and other
revenue. Cost of revenue was
updated consistent with the
changes noted in revenue and to
separately state the amount of
amortization from developed
technology to be consistent with
the presentation of the
amortization of purchased
intangibles within operating
expenses. This simplified the
reconciliation between the
income statement presentation
and recurring revenue, and
improved the link between our
financial statements and our
business model transition.
Autodesk, Inc.
Condensed Consolidated Balance Sheets
(In millions)
October 31, 2017 January 31, 2017
---------------- ----------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $1,025.2 $1,213.1
Marketable securities 428.7 686.8
Accounts receivable, net 307.8 452.3
Prepaid expenses and other
current assets 110.2 108.4
----- -----
Total current assets 1,871.9 2,460.6
------- -------
Marketable securities 264.3 306.2
Computer equipment, software,
furniture and leasehold
improvements, net 148.1 158.6
Developed technologies, net 29.9 45.7
Goodwill 1,588.7 1,561.1
Deferred income taxes, net 64.7 63.9
Other assets 184.4 202.0
----- -----
Total assets $4,152.0 $4,798.1
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $93.3 $93.5
Accrued compensation 195.9 238.2
Accrued income taxes 21.7 50.0
Deferred revenue 1,333.1 1,270.1
Current portion of long-term
notes payable, net - 398.7
Other accrued liabilities 106.0 134.9
----- -----
Total current liabilities 1,750.0 2,185.4
------- -------
Long-term deferred revenue 430.8 517.9
Long-term income taxes payable 31.3 39.3
Long-term deferred income taxes 97.9 91.5
Long-term notes payable, net 1,585.4 1,092.0
Other liabilities 149.3 138.4
Stockholders' equity:
Preferred stock - -
Common stock and additional
paid-in capital 1,930.8 1,876.3
Accumulated other comprehensive
loss (155.5) (178.5)
Accumulated deficit (1,668.0) (964.2)
-------- ------
Total stockholders' equity 107.3 733.6
----- -----
Total liabilities and
stockholders' equity $4,152.0 $4,798.1
======== ========
Autodesk, Inc
Condensed Consolidated Statements of Cash Flows
(In millions)
Nine Months Ended October 31,
2017 2016
---- ----
(Unaudited)
Operating activities:
Net loss $(393.4) $(408.7)
Adjustments to reconcile net loss to net cash (used in)
provided by operating activities:
Depreciation, amortization and
accretion 81.5 104.5
Stock-based compensation expense 199.5 162.5
Deferred income taxes 7.3 (39.6)
Restructuring charges and other
facility exit costs, net 0.2 71.5
Other operating activities 18.1 3.4
Changes in operating assets and liabilities, net of
acquisitions:
Accounts receivable 143.3 393.8
Prepaid expenses and other current
assets (6.5) (12.7)
Accounts payable and accrued
liabilities (69.3) (71.9)
Deferred revenue (21.8) 15.6
Accrued income taxes (37.3) (64.3)
Net cash (used in) provided by
operating activities (78.4) 154.1
----- -----
Investing activities:
Purchases of marketable securities (419.6) (1,106.4)
Sales of marketable securities 199.2 544.7
Maturities of marketable securities 530.1 1,012.6
Capital expenditures (39.3) (65.1)
Acquisitions, net of cash acquired - (85.2)
Other investing activities (11.5) (14.8)
----- -----
Net cash provided by investing
activities 258.9 285.8
----- -----
Financing activities:
Proceeds from issuance of common
stock, net of issuance costs 93.2 102.2
Taxes paid related to net share
settlement of equity awards (120.6) (58.9)
Repurchase and retirement of common
stock (437.9) (397.6)
Proceeds from debt, net of discount 496.9 -
Repayment of debt (400.0) -
Other financing activities (5.8) -
---- ---
Net cash used in financing activities (374.2) (354.3)
------ ------
Effect of exchange rate changes on
cash and cash equivalents 5.8 (2.1)
--- ----
Net (decrease) increase in cash and
cash equivalents (187.9) 83.5
Cash and cash equivalents at beginning
of the period 1,213.1 1,353.0
------- -------
Cash and cash equivalents at end of
the period $1,025.2 $1,436.5
======== ========
Error occurred while generating ASCII Content for table
Three Months Ended Nine Months Ended
October 31, October 31,
2017 2016 2017 2016
---- ---- ---- ----
(Unaudited) (Unaudited)
GAAP cost of
maintenance and
subscription
revenue $53.9 $46.8 $161.6 $140.2
Stock-based
compensation
expense (2.9) (2.2) (8.5) (6.2)
Non-GAAP cost of
maintenance and
subscription
revenue $51.0 $44.6 $153.1 $134.0
===== ===== ====== ======
GAAP cost of license
and other revenue $19.6 $24.3 $56.0 $86.8
Stock-based
compensation
expense (1.0) (1.3) (3.1) (4.1)
Non-GAAP cost of
license and other
revenue $18.6 $23.0 $52.9 $82.7
===== ===== ===== =====
GAAP amortization of
developed
technology $4.0 $10.4 $12.7 $32.0
Amortization of
developed
technology (4.0) (10.4) (12.7) (32.0)
Non-GAAP
amortization of
developed
technology $ - $ - $ - $ -
=== === === === === === === ===
GAAP gross profit $437.8 $408.1 $1,272.5 $1,293.2
Stock-based
compensation
expense 3.9 3.5 11.6 10.3
Amortization of
developed
technology 4.0 10.4 12.7 32.0
--- ---- ---- ----
Non-GAAP gross
profit $445.7 $422.0 $1,296.8 $1,335.5
====== ====== ======== ========
GAAP marketing and
sales $272.5 $255.0 $785.8 $738.9
Stock-based
compensation
expense (27.7) (24.2) (80.1) (69.0)
----- ----- ----- -----
Non-GAAP marketing
and sales $244.8 $230.8 $705.7 $669.9
====== ====== ====== ======
GAAP research and
development $191.8 $192.6 $573.3 $579.1
Stock-based
compensation
expense (20.1) (20.9) (61.7) (60.0)
----- ----- ----- -----
Non-GAAP research
and development $171.7 $171.7 $511.6 $519.1
====== ====== ====== ======
GAAP general and
administrative $68.8 $70.4 $225.1 $213.7
Stock-based
compensation
expense (13.4) (8.0) (29.5) (23.2)
CEO transition costs
(1) - - (21.6) -
--- --- ----- ---
Non-GAAP general
and administrative $55.4 $62.4 $174.0 $190.5
===== ===== ====== ======
GAAP amortization of
purchased
intangibles $4.7 $6.8 $15.3 $22.5
Amortization of
purchased
intangibles (4.7) (6.8) (15.3) (22.5)
---- ---- ----- -----
Non-GAAP
amortization of
purchased
intangibles $ - $ - $ - $ -
=== === === === === === === ===
GAAP restructuring
(benefits) charges
and other facility
exit costs, net $ - $3.2 $0.2 $71.5
Restructuring
(benefits) charges
and other facility
exit costs, net - (3.2) (0.2) (71.5)
Non-GAAP
restructuring
(benefits) charges
and other facility
exit costs, net $ - $ - $ - $ -
=== === === === === === === ===
GAAP operating
expenses $537.8 $528.0 $1,599.7 $1,625.7
Stock-based
compensation
expense (61.2) (53.1) (171.3) (152.2)
Amortization of
purchased
intangibles (4.7) (6.8) (15.3) (22.5)
CEO transition costs
(1) - - (21.6) -
Restructuring
(benefits) charges
and other facility
exit costs, net - (3.2) (0.2) (71.5)
--- ---- ---- -----
Non-GAAP operating
expenses $471.9 $464.9 $1,391.3 $1,379.5
====== ====== ======== ========
GAAP Spend $615.3 $609.5 $1,830.0 $1,884.7
Stock-based
compensation
expense (65.1) (56.6) (182.9) (162.5)
Amortization of
developed
technology (4.0) (10.4) (12.7) (32.0)
Amortization of
purchased
intangibles (4.7) (6.8) (15.3) (22.5)
CEO transition costs
(1) - - (21.6) -
Restructuring
(benefits) charges
and other facility
exit costs, net - (3.2) (0.2) (71.5)
---- -----
Non-GAAP Spend $541.5 $532.5 $1,597.3 $1,596.2
====== ====== ======== ========
GAAP loss from
operations $(100.0) $(119.9) $(327.2) $(332.5)
Stock-based
compensation
expense 65.1 56.6 182.9 162.5
Amortization of
developed
technology 4.0 10.4 12.7 32.0
Amortization of
purchased
intangibles 4.7 6.8 15.3 22.5
CEO transition costs
(1) - - 21.6 -
Restructuring
(benefits) charges
and other facility
exit costs, net - 3.2 0.2 71.5
--- --- --- ----
Non-GAAP (loss)
income from
operations $(26.2) $(42.9) $(94.5) $(44.0)
====== ====== ====== ======
GAAP interest and
other expense, net $(11.2) $(9.4) $(31.8) $(23.1)
Loss (gain) on
strategic
investments and
dispositions 1.7 (0.4) 9.5 (0.6)
--- ---- --- ----
Non-GAAP interest
and other expense,
net $(9.5) $(9.8) $(22.3) $(23.7)
===== ===== ====== ======
GAAP provision for
income taxes $(8.6) $(13.5) $(34.4) $(53.1)
Discrete GAAP tax
items (2.5) (9.0) (10.2) 4.0
Income tax effect of
non-GAAP
adjustments 20.4 36.2 75.0 66.7
---- ---- ---- ----
Non-GAAP benefit
(provision) for
income tax $9.3 $13.7 $30.4 $17.6
==== ===== ===== =====
GAAP net loss $(119.8) $(142.8) $(393.4) $(408.7)
Stock-based
compensation
expense 65.1 56.6 182.9 162.5
Amortization of
developed
technology 4.0 10.4 12.7 32.0
Amortization of
purchased
intangibles 4.7 6.8 15.3 22.5
CEO transition costs
(1) - - 21.6 -
Restructuring
(benefits) charges
and other facility
exit costs, net - 3.2 0.2 71.5
Loss (gain) on
strategic
investments and
dispositions 1.7 (0.4) 9.5 (0.6)
Discrete GAAP tax
items (2.5) (9.0) (10.2) 4.0
Income tax effect of
non-GAAP
adjustments 20.4 36.2 75.0 66.7
---- ---- ---- ----
Non-GAAP net (loss)
income $(26.4) $(39.0) $(86.4) $(50.1)
====== ====== ====== ======
GAAP diluted net
loss per share (2) $(0.55) $(0.64) $(1.79) $(1.83)
Stock-based
compensation
expense 0.30 0.25 0.83 0.73
Amortization of
developed
technology 0.02 0.05 0.06 0.14
Amortization of
purchased
intangibles 0.02 0.03 0.07 0.10
CEO transition costs
(1) - - 0.09 -
Restructuring
(benefits) charges
and other facility
exit costs, net - 0.01 - 0.32
Loss (gain) on
strategic
investments and
dispositions 0.01 - 0.05 -
Discrete GAAP tax
items (0.01) (0.03) (0.04) 0.02
Income tax effect of
non-GAAP
adjustments 0.09 0.15 0.34 0.30
---- ---- ---- ----
Non-GAAP diluted
net (loss) income
per share (2) $(0.12) $(0.18) $(0.39) $(0.22)
====== ====== ====== ======
GAAP diluted shares
used in per share
calculation 219.6 222.3 219.7 223.3
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 219.6 222.3 219.7 223.3
===== ===== ===== =====
(1) CEO transition costs include stock-
based compensation of $16.6
million related to the
acceleration of eligible stock
awards in the nine months ended
October 31, 2017. 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 was 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.
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SOURCE Autodesk, Inc.
