Autodesk, Inc. Announces Fiscal 2020 Second Quarter Results
SAN RAFAEL, Calif., Aug. 27, 2019 /PRNewswire/ -- Autodesk, Inc. (NASDAQ: ADSK) today reported financial results for the second quarter of fiscal 2020.
All growth rates are compared to the second quarter of fiscal 2019 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.
-- Total ARR increased 31 percent to $3.07 billion;
-- Total billings increased 48 percent to $893 million;
-- Total revenue increased 30 percent to $797 million; recurring revenue
represents 96 percent of total;
-- GAAP operating margin was 9 percent, up 13 percentage points;
-- Non-GAAP operating margin was 23 percent, up 14 percentage points;
-- GAAP diluted EPS was $0.18; Non-GAAP diluted EPS was $0.65;
-- Cash flow from operating activities was $219 million; free cash flow was
$205 million.
"We closed a solid first half of the year with a very strong second quarter as revenue, billings, earnings, and free cash flow came in ahead of expectations," said Andrew Anagnost, Autodesk president and CEO. "ARR grew to a record $3.1 billion, driven by all parts of the business. Construction demonstrated continued strength with wins across all parts of the portfolio, and Fusion 360 - our design-to-manufacturing platform - continued to build momentum. We also made further strides in capturing opportunities within our non-paying user base. In an environment of increasing uncertainty, we believe we are well-positioned to achieve our FY23 goals."
"Our strong performance during the second quarter helped us achieve two milestones," said Scott Herren, Autodesk CFO. "First, we drove our largest quarterly non-GAAP net income to date, followed by a record setting last twelve months free cash flow of $731 million. While we continue to execute well and are not materially impacted by current trade tensions and macro uncertainty, we are taking a prudent stance to our second half fiscal 2020 outlook. Despite these near-term headwinds, our recurring revenue model is much more resilient than in prior cycles."
Second Quarter Fiscal 2020 Financial Highlights
-- Total ARR increased 31 percent to $3.07 billion as reported, and on a
constant currency basis. Excluding fourth quarter acquisitions, total
ARR increased 27 percent to $2.97 billion as reported, and 26 percent on
a constant currency basis. On a sequential basis, total ARR increased 8
percent as reported, and 9 percent on a constant currency basis.
-- Subscription plan ARR increased 58 percent to $2.65 billion as reported,
and 59 percent on a constant currency basis. Excluding fourth quarter
acquisitions, subscription plan ARR increased 52 percent to $2.56
billion. On a sequential basis, subscription plan ARR increased 11
percent as reported, and 12 percent on a constant currency basis.
Subscription plan ARR includes $566 million related to the
maintenance-to-subscription (M2S) program.
-- Maintenance plan ARR decreased 38 percent to $414 million as reported,
and 39 percent on a constant currency basis. On a sequential basis,
maintenance plan ARR decreased 8 percent as reported, and on a constant
currency basis.
-- Core ARR increased 26 percent to $2.86 billion. On a sequential basis,
core ARR increased 8 percent.
-- Cloud ARR increased 175 percent to $207 million. Excluding fourth
quarter acquisitions, cloud ARR increased 45 percent to $109 million. On
a sequential basis, total cloud ARR increased 15 percent.
-- Net revenue retention rate was within the range of 110 to 120 percent.
-- Total revenue increased 30 percent to $797 million as reported, and on a
constant currency basis. Excluding fourth quarter acquisitions, total
revenue increased 26 percent to $772 million as reported, and 28 percent
on a constant currency basis.
-- Total recurring revenue in the second quarter was 96 percent of total
revenue, consistent with the second quarter last year.
-- GAAP operating income was $74 million compared to a loss of $25 million
in the second quarter last year. GAAP operating margin was 9 percent, up
13 percentage points year-over-year.
-- Total non-GAAP operating income was $187 million compared to $56 million
in the second quarter last year. Non-GAAP operating margin was 23
percent, up 14 percentage points year-over-year.
-- GAAP diluted net income per share was $0.18, compared to GAAP diluted
net loss per share of $0.18 in the second quarter last year.
-- Non-GAAP diluted net income per share was $0.65, compared to non-GAAP
diluted net income per share of $0.19 in the second quarter last year.
-- Total billings increased 48 percent to $893 million.
-- Deferred revenue increased 25 percent to $2.25 billion. Unbilled
deferred revenue was $563 million, an increase of $157 million.
Remaining performance obligations (RPO), or the sum of total billed and
unbilled deferred revenue, totaled $2.81 billion, an increase of 28
percent. Current RPO totaled $2.01 billion, up 23 percent.
-- Cash flow from operating activities was $219 million, an increase of
$176 million compared to the second quarter last year. Free cash flow
was $205 million, an increase of $181 million compared to the second
quarter last year.
Second Quarter Fiscal 2020 Business Highlights
Net Revenue by Geographic Area
Three Months Three Months Change compared to
Constant currency
Ended July 31, Ended July 31, prior fiscal year change compared
2019 2018 to prior fiscal year
(In millions, except
percentages)
$ %
%
Net Revenue:
Americas
U.S. $
267.9 $
205.2 $
62.7 31
%
*
Other Americas 58.0 42.3 15.7 37
%
*
Total Americas 325.9 247.5 78.4 32
% 32
%
EMEA 316.2 248.3 67.9 27
% 26
%
APAC 154.7 115.9 38.8 33
% 35
%
Total Net Revenue $
796.8 $
611.7 $
185.1 30
% 30
%
Emerging Economies $
97.4 $
74.2 $
23.2 31
% 32
%
____________________
* 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) July 31, 2019 July 31, 2018
$ %
AEC $
334.2 $
243.1 $
91.1 37
%
AutoCAD and AutoCAD LT 231.3 176.6 54.7 31
%
MFG 174.6 146.1 28.5 20
%
M&E 50.8 41.7 9.1 22
%
Other 5.9 4.2 1.7 40
%
$
796.8 $
611.7 $
185.1 30
%
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 2020 takes into consideration the current economic environment and foreign exchange currency rate environment. A reconciliation between the fiscal 2020 GAAP and non-GAAP estimates is provided below or in the tables following this press release.
Third Quarter Fiscal 2020
Q3 FY20 Guidance Metrics Q3 FY20
(ending October 31,
2019)
Revenue (in millions)
$820 - $830
EPS GAAP
$0.24 - $0.28
EPS non-GAAP (1)
$0.70 - $0.74
_______________
(1) Non-GAAP earnings per diluted share
excludes $0.42 related to stock-based
compensation expense, $0.08 for the
amortization of acquisition-related
intangibles, $0.01 for acquisition related
costs, and ($0.05) related to GAAP-only tax
charges.
Full Year Fiscal 2020
FY20 Guidance Metrics FY20
(ending January 31,
2020)
Total ARR (in millions)
$3,425 - $3,485
Up 25% - 27%
Billings (in millions)
$4,020 - $4,080
Up 49% - 51%
Revenue (in millions) (1)
$3,240 - $3,270
Up 26% - 27%
GAAP spend growth Approx. 12%
Non-GAAP spend growth (2) Approx. 9%
EPS GAAP
$0.75 - $0.87
EPS non-GAAP (3)
$2.69 - $2.81
Free cash flow (4) Approx. $1.30 billion
_______________
(1) Excluding the approximately $10
million impact of foreign currency
exchange rates and hedge gains/
losses, revenue guidance would be
$3,250 -$3,280 million.
(2) Non-GAAP spend excludes $354
million related to stock-based
compensation expense, $73 million
for the amortization of
acquisition-related intangibles,
and $22 million for acquisition-
related costs.
(3) Non-GAAP earnings per diluted
share excludes $1.60 related to
stock-based compensation expense,
$0.33 for the amortization of
acquisition-related intangibles,
$0.11 related to acquisition
related costs, $0.01 related to
strategic investment losses, and
($0.11) related to GAAP-only tax
charges.
(4) Free cash flow excludes
approximately $70 million of
capital expenditures.
The third quarter and full year fiscal 2020 outlook assume a projected annual effective tax rate of 39 percent and 18 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. Thus, 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 5:00 p.m. ET. The live broadcast can be accessed at http://www.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 7:00 p.m. ET at http://www.autodesk.com/investor. This replay will be maintained on Autodesk's website for at least 12 months.
Investor Presentation Details
An investor presentation providing additional information can be found at http://www.autodesk.com/investor.
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 subscription offerings. 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 is captured when total subscriptions are captured in our systems and 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.
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.
Core Business: Represents the combination of maintenance, product, and EBA.
Enterprise Business Agreements (EBAs): Represents 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.
Free Cash Flow: Cash flow from operating activities minus capital expenditures.
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.
Net Revenue Retention Rate (NR3): Measures the year-over-year change in ARR for the population of customers that existed one year ago ("base customers"). Net revenue retention rate is calculated by dividing the current period ARR related to base customers by the total ARR from one year ago. ARR 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. ARR related to acquired companies is excluded from the calculation for at least one year from integration.
Other Revenue: Consists of revenue from consulting, training and other services, and is recognized over time as the services are performed. Other Revenue also includes software license revenue from the sale of products that do not incorporate substantial cloud services and is recognized up front.
Product Subscription: Provides customers the most 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 SaaS 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 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.
Remaining Performance Obligations: 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.
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 subscription fees from product subscriptions, cloud service offerings, and 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 and other statements about our short-term and long-term goals, 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; 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; pricing pressure; unexpected fluctuations in our annual effective tax rate; significant effects of tax legislation and judicial or administrative interpretation of tax regulations, including the Tax Cuts and Jobs Act? 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. 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 reports on Form 10-K and Form 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
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.
© 2019 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,
2019 2018 2019 2018
---
(Unaudited)
Net revenue:
Subscription $
663.7 $
420.6 $
1,259.5 $
771.0
Maintenance 103.5 166.4 215.5 347.6
Total subscription and
maintenance revenue 767.2 587.0 1,475.0 1,118.6
Other 29.6 24.7 57.3 53.0
Total net revenue 796.8 611.7 1,532.3 1,171.6
Cost of revenue:
Cost of subscription and
maintenance revenue 53.0 54.1 112.7 104.5
Cost of other revenue 17.9 12.3 31.7 25.1
Amortization of developed
technology 8.6 3.4 17.8 7.0
Total cost of revenue 79.5 69.8 162.2 136.6
Gross profit 717.3 541.9 1,370.1 1,035.0
Operating expenses:
Marketing and sales 316.8 289.1 630.1 565.5
Research and development 215.4 180.8 421.0 353.6
General and administrative 101.4 79.1 200.5 152.0
Amortization of purchased
intangibles 9.7 3.8 19.5 7.6
Restructuring and other exit
costs, net 0.2 13.8 0.4 36.3
Total operating expenses 643.5 566.6 1,271.5 1,115.0
Income (loss) from operations 73.8 (24.7) 98.6 (80.0)
Interest and other (expense)
income, net (7.3) 1.3 (23.5) (7.2)
Income (loss) before income
taxes 66.5 (23.4) 75.1 (87.2)
Provision for income taxes (26.3) (16.0) (59.1) (34.6)
Net income (loss) $
40.2 $
(39.4) $
16.0 $
(121.8)
Basic net income (loss) per
share $
0.18 $
(0.18) $
0.07 $
(0.56)
Diluted net income (loss) per
share $
0.18 $
(0.18) $
0.07 $
(0.56)
Weighted average shares used
in computing basic net
income (loss) per share 219.6 219.0 219.6 218.8
Weighted average shares used
in computing diluted net
income (loss) per share 222.4 219.0 222.3 218.8
Autodesk, Inc.
Condensed Consolidated Balance
Sheets
(In millions)
July 31, 2019 January 31, 2019
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $
923.9 $
886.0
Marketable securities 67.4 67.6
Accounts receivable, net 347.4 474.3
Prepaid expenses and other
current assets 176.8 192.1
Total current assets 1,515.5 1,620.0
Computer equipment, software,
furniture and leasehold
improvements, net 151.4 149.7
Operating lease right-of-use
assets 298.8
Developed technologies, net 87.6 105.6
Goodwill 2,431.8 2,450.8
Deferred income taxes, net 46.3 65.3
Other assets 341.3 337.8
Total assets $
4,872.7 $
4,729.2
LIABILITIES AND STOCKHOLDERS'
DEFICIT
Current liabilities:
Accounts payable $
93.0 $
101.6
Accrued compensation 213.8 280.8
Accrued income taxes 5.9 13.2
Deferred revenue 1,772.1 1,763.3
Operating lease liabilities 58.9
Current portion of long-term
notes payable, net 449.2
Other accrued liabilities 114.4 142.3
Total current liabilities 2,707.3 2,301.2
Long-term deferred revenue 477.4 328.1
Long-term operating lease
liabilities 258.1
Long-term income taxes payable 19.5 21.5
Long-term deferred income
taxes 98.9 79.8
Long-term notes payable, net 1,389.8 2,087.7
Other liabilities 116.0 121.8
Stockholders' deficit:
Common stock and additional
paid-in capital 2,200.7 2,071.5
Accumulated other comprehensive
loss (170.7) (135.0)
Accumulated deficit (2,224.3) (2,147.4)
Total stockholders' deficit (194.3) (210.9)
Total liabilities and
stockholders' deficit $
4,872.7 $
4,729.2
Autodesk, Inc.
Condensed Consolidated Statements of
Cash Flows
(In millions)
Six Months Ended July 31,
2019 2018
(Unaudited)
Operating activities:
Net income (loss) $
16.0 $
(121.8)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, amortization and
accretion 64.8 46.3
Stock-based compensation expense 163.4 111.3
Deferred income taxes 35.8 (0.3)
Restructuring and other exit costs,
net 0.4 36.6
Other operating activities (4.2) (1.3)
Changes in operating assets and
liabilities, net of acquisitions:
Accounts receivable 125.8 204.2
Prepaid expenses and other current
assets 27.4 7.9
Accounts payable and accrued
liabilities (138.1) (201.3)
Deferred revenue 158.3 (66.7)
Accrued income taxes (9.1) 11.5
Net cash provided by operating
activities 440.5 26.4
Investing activities:
Purchases of marketable securities (19.9) (110.1)
Sales of marketable securities 22.4 27.0
Maturities of marketable securities 5.0 119.6
Capital expenditures (29.5) (36.7)
Acquisitions, net of cash acquired (34.1)
Other investing activities (10.5) (6.0)
Net cash used in investing activities (32.5) (40.3)
Financing activities:
Proceeds from issuance of common
stock, net of issuance costs 49.7 50.4
Taxes paid related to net share
settlement of equity awards (31.2) (53.0)
Repurchase and retirement of common
stock (134.6) (154.7)
Repayment of debt (250.0)
Net cash used in financing activities (366.1) (157.3)
Effect of exchange rate changes on
cash and cash equivalents (4.0) (11.4)
Net increase (decrease) in cash and
cash equivalents 37.9 (182.6)
Cash and cash equivalents at beginning
of the period 886.0 1,078.0
Cash and cash equivalents at end of
the period $
923.9 $
895.4
Autodesk, Inc.
Reconciliation of GAAP financial measures to non-GAAP financial measures
(In millions, except per share data)
To supplement our consolidated financial statements presented on a GAAP basis, we provide investors with certain non-GAAP measures including non-GAAP net income per share, non-GAAP operating margin, non-
GAAP spend, non-GAAP EPS and free cash flow. For our internal budgeting and resource allocation process and as a means to evaluate period-to-period comparisons, we use non-GAAP measures to supplement
our consolidated financial statements presented on a GAAP basis. These non-GAAP measures do not include certain items that may have a material impact upon our future reported financial results. We use non-
GAAP measures in making operating decisions because we believe those measures provide meaningful supplemental information regarding our earning potential and performance for management by excluding certain
expenses and charges that may not be indicative of our core business operating results. For the reasons set forth below, we believe these non-GAAP financial measures are useful to investors both because
(1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst
community to help them analyze the health of our business. This allows investors and others to better understand and evaluate our operating results and future prospects in the same manner as management,
compare financial results across accounting periods and to those of peer companies and to better understand the long-term performance of our core business. We also use some of these measures for purposes
of determining company-wide incentive compensation.
There are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other
companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to
inherent limitations as they reflect the exercise of judgments by management about which charges are excluded from the non-GAAP financial measures. We compensate for these limitations by analyzing current
and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in our public disclosures. The presentation of non-GAAP financial information is meant to be considered
in addition to, not as a substitute for or in isolation from, the directly comparable financial measures prepared in accordance with GAAP. We urge investors to review the reconciliation of our non-GAAP
financial measures to the comparable GAAP financial measures included in this presentation, and not to rely on any single financial measure to evaluate our business.
The following table shows Autodesk's non-GAAP results reconciled to GAAP results included in this release.
Three Months Ended July 31, Six Months Ended July 31,
2019 2018 2019 2018
---
(Unaudited)
(Unaudited)
GAAP cost of
subscription and
maintenance revenue $
53.0 $
54.1 $
112.7 $
104.5
Stock-based
compensation
expense (3.4) (3.1) (7.0) (5.8)
Non-GAAP cost of
subscription and
maintenance revenue $
49.6 $
51.0 $
105.7 $
98.7
GAAP cost of other
revenue $
17.9 $
12.3 $
31.7 $
25.1
Stock-based
compensation
expense (1.4) (0.9) (2.7) (1.7)
Non-GAAP cost of
other revenue $
16.5 $
11.4 $
29.0 $
23.4
GAAP amortization of
developed
technology $
8.6 $
3.4 $
17.8 $
7.0
Amortization of
developed
technology (8.6) (3.4) (17.8) (7.0)
Non-GAAP
amortization of
developed
technology
$
$
$
$
GAAP gross profit $
717.3 $
541.9 $
1,370.1 $
1,035.0
Stock-based
compensation
expense 4.8 4.0 9.7 7.5
Amortization of
developed
technology 8.6 3.4 17.8 7.0
Non-GAAP gross
profit $
730.7 $
549.3 $
1,397.6 $
1,049.5
GAAP marketing and
sales $
316.8 $
289.1 $
630.1 $
565.5
Stock-based
compensation
expense (36.0) (25.9) (68.5) (49.9)
Acquisition related
costs (0.1) (0.1)
Non-GAAP marketing
and sales $
280.7 $
263.2 $
561.5 $
515.6
GAAP research and
development $
215.4 $
180.8 $
421.0 $
353.6
Stock-based
compensation
expense (30.8) (18.7) (57.5) (36.5)
Acquisition related
costs (0.4) (0.4)
Non-GAAP research
and development $
184.2 $
162.1 $
363.1 $
317.1
GAAP general and
administrative $
101.4 $
79.1 $
200.5 $
152.0
Stock-based
compensation
expense (16.6) (8.3) (27.7) (17.4)
CEO transition costs - 0.1 0.1
Acquisition related
costs (5.5) (2.5) (18.2) (2.5)
Non-GAAP general
and administrative $
79.3 $
68.4 $
154.6 $
132.2
GAAP amortization of
purchased
intangibles $
9.7 $
3.8 $
19.5 $
7.6
Amortization of
purchased
intangibles (9.7) (3.8) (19.5) (7.6)
Non-GAAP
amortization of
purchased
intangibles
$
$
$
$
GAAP restructuring
and other exit
costs, net $
0.2 $
13.8 $
0.4 $
36.3
Restructuring and
other exit costs,
net (0.2) (13.8) (0.4) (36.3)
Non-GAAP
restructuring and
other exit costs,
net
$
$
$
$
GAAP operating
expenses $
643.5 $
566.6 $
1,271.5 $
1,115.0
Stock-based
compensation
expense (83.4) (52.9) (153.7) (103.8)
Amortization of
purchased
intangibles (9.7) (3.8) (19.5) (7.6)
CEO transition costs - 0.1 0.1
Acquisition related
costs (6.0) (2.5) (18.7) (2.5)
Restructuring and
other exit costs,
net (0.2) (13.8) (0.4) (36.3)
Non-GAAP operating
expenses $
544.2 $
493.7 $
1,079.2 $
964.9
GAAP spend $
723.0 $
636.4 $
1,433.7 $
1,251.6
Stock-based
compensation
expense (88.2) (56.9) (163.4) (111.3)
Amortization of
developed
technology (8.6) (3.4) (17.8) (7.0)
Amortization of
purchased
intangibles (9.7) (3.8) (19.5) (7.6)
CEO transition costs - 0.1 0.1
Acquisition related
costs (6.0) (2.5) (18.7) (2.5)
Restructuring and
other exit costs,
net (0.2) (13.8) (0.4) (36.3)
Non-GAAP spend $
610.3 $
556.1 $
1,213.9 $
1,087.0
GAAP income (loss)
from operations $
73.8 $
(24.7) $
98.6 $
(80.0)
Stock-based
compensation
expense 88.2 56.9 163.4 111.3
Amortization of
developed
technology 8.6 3.4 17.8 7.0
Amortization of
purchased
intangibles 9.7 3.8 19.5 7.6
CEO transition costs - (0.1) (0.1)
Acquisition related
costs 6.0 2.5 18.7 2.5
Restructuring and
other exit costs,
net 0.2 13.8 0.4 36.3
Non-GAAP income
from operations $
186.5 $
55.6 $
318.4 $
84.6
GAAP interest and
other (expense)
income, net $
(7.3) $
1.3 $
(23.5) $
(7.2)
(Gain) loss on
strategic
investments and
dispositions, net (2.2) (3.9) 2.8 (6.6)
Restructuring and
other exit costs,
net - 0.3 0.3
Non-GAAP interest
and other expense,
net $
(9.5) $
(2.3) $
(20.7) $
(13.5)
GAAP provision for
income taxes $
(26.3) $
(16.0) $
(59.1) $
(34.6)
Discrete GAAP tax
items 3.3 (8.7) 1.0 (8.7)
Income tax effect of
non-GAAP
adjustments (8.9) 14.6 4.5 29.8
Non-GAAP provision
for income tax $
(31.9) $
(10.1) $
(53.6) $
(13.5)
GAAP net income
(loss) $
40.2 $
(39.4) $
16.0 $
(121.8)
Stock-based
compensation
expense 88.2 56.9 163.4 111.3
Amortization of
developed
technology 8.6 3.4 17.8 7.0
Amortization of
purchased
intangibles 9.7 3.8 19.5 7.6
CEO transition costs - (0.1) (0.1)
Acquisition related
costs 6.0 2.5 18.7 2.5
Restructuring and
other exit costs,
net 0.2 14.1 0.4 36.6
(Gain) loss on
strategic
investments and
dispositions, net (2.2) (3.9) 2.8 (6.6)
Discrete GAAP tax
items 3.3 (8.7) 1.0 (8.7)
Income tax effect of
non-GAAP
adjustments (8.9) 14.6 4.5 29.8
Non-GAAP net income $
145.1 $
43.2 $
244.1 $
57.6
GAAP diluted net
income (loss) per
share $
0.18 $
(0.18) $
0.07 $
(0.56)
Stock-based
compensation
expense 0.40 0.26 0.74 0.51
Amortization of
developed
technology 0.04 0.02 0.08 0.04
Amortization of
purchased
intangibles 0.05 0.01 0.09 0.03
Acquisition related
costs 0.02 0.01 0.09 0.01
Restructuring and
other exit costs,
net - 0.06 0.16
(Gain) loss on
strategic
investments and
dispositions, net (0.01) (0.02) 0.01 (0.03)
Discrete GAAP tax
items 0.01 (0.04) (0.04)
Income tax effect of
non-GAAP
adjustments (0.04) 0.07 0.02 0.14
Non-GAAP diluted
net income per
share $
0.65 $
0.19 $
1.10 $
0.26
GAAP diluted shares
used in per share
calculation 222.4 219.0 222.3 218.8
Shares included in
non-GAAP net
income per share,
but excluded from
GAAP net loss per
share as they would
have been anti-
dilutive - 3.2 3.2
Non-GAAP diluted
weighted average
shares used in per
share calculation 222.4 222.2 222.3 222.0
Reconciliation of GAAP net cash provided by operating activities to non-GAAP free cash flow
Net cash Capital Free cash
provided by expenditures flow
operating
activities
---
Fiscal year ending January 31, 2019 $
377.1 $
(67.0) $
310.1
Less six months ending July 31, 2018 26.4 (36.7) (10.3)
Plus six months ending July 31, 2019 440.5 (29.5) 411.0
Last twelve months ending July 31, 2019 $
791.2 $
(59.8) $
731.4
Net cash Capital Free cash
provided by expenditures flow
operating
activities
---
Six months ending July 31, 2019 $
440.5 $
(29.5) $
411.0
Less three months ending April 30, 2019 221.2 (14.7) 206.5
Three months ending July 31, 2019 $
219.3 $
(14.8) $
204.5
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SOURCE Autodesk, Inc.
