Autodesk, Inc. Announces Fiscal 2021 Second Quarter Results
SAN RAFAEL, Calif., Aug. 25, 2020 /PRNewswire/ -- Autodesk, Inc. (NASDAQ: ADSK) today reported financial results for the second quarter of fiscal 2021.
All growth rates are compared to the second quarter of fiscal 2020 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 2021 Financial Highlights
-- Total revenue increased 15 percent to $913 million;
-- GAAP operating margin was 16 percent, up 7 percentage points;
-- Non-GAAP operating margin was 29 percent, up 5 percentage points;
-- GAAP diluted EPS was $0.44; Non-GAAP diluted EPS was $0.98;
-- Cash flow from operating activities was $91 million; free cash flow was
$64 million.
"We delivered a strong second quarter as a result of our resilient business model and strategic nature of our products," said Andrew Anagnost, Autodesk president and CEO. "Our cloud-based solutions are helping our customers stay productive in the current environment, and have resulted in expanded relationships and usage of our products. I am very proud of our team as we continue to deliver on our long-term strategic goals, and remain confident in our growth drivers and fiscal 2023 targets."
"With solid performance across all key metrics, our second quarter results demonstrated the strength of our business," said Scott Herren, Autodesk CFO. "As a result of our adaptability, outstanding execution in a difficult environment, and healthy renewal rates, we delivered 15 percent year-over-year growth in revenue, expanded our operating margin by 5 percentage points, and delivered robust free cash flow."
Additional Financial Details
-- Total billings decreased 12 percent to $787 million.
-- Total revenue was $913 million, an increase of 15 percent as reported,
and 16 percent on a constant currency basis. Recurring revenue
represents 98 percent of total.
-- Design* revenue was $821 million, an increase of 15 percent as reported,
and 16 percent on a constant currency basis. On a sequential basis,
Design revenue increased 3 percent as reported and on a constant
currency basis.
-- Make* revenue was $71 million, an increase of 37 percent as reported,
and 38 percent on a constant currency basis. On a sequential basis, Make
revenue increased 5 percent as reported, and 6 percent on a constant
currency basis.
-- Subscription plan revenue was $841 million, an increase of 27 percent as
reported, and 28 percent on a constant currency basis. On a sequential
basis, subscription plan revenue increased 5 percent as reported and on
a constant currency basis.
-- Maintenance plan revenue was $51 million, a decrease of 51 percent as
reported, and 49 percent on a constant currency basis. On a sequential
basis, maintenance plan revenue decreased 18 percent as reported, and 17
percent on a constant currency basis.
-- Net revenue retention rate was within the range of 100 to 110 percent.
-- GAAP operating income was $146 million, compared to $74 million in the
second quarter last year. GAAP operating margin was 16 percent, up 7
percentage points.
-- Total non-GAAP operating income was $262 million, compared to $187
million in the second quarter last year. Non-GAAP operating margin was
29 percent, up 5 percentage points.
-- GAAP diluted net income per share was $0.44, compared to $0.18 in the
second quarter last year.
-- Non-GAAP diluted net income per share was $0.98, compared to $0.65 in
the second quarter last year.
-- Deferred revenue increased 28 percent to $2.88 billion. Unbilled
deferred revenue was $469 million, a decrease of $95 million compared to
the second quarter of last year. Remaining performance obligations (RPO)
increased 19 percent to $3.3 billion. Current RPO increased 15 percent
to $2.3 billion.
-- Cash flow from operating activities was $91 million, a decrease of $128
million compared to the second quarter last year. Free cash flow was $64
million, a decrease of $140 million compared to the second quarter last
year.
*Please refer to appendix
for definitions.
Second Quarter Fiscal 2021 Business Highlights
Net Revenue by Geographic Area
(In millions,
except
percentages) Three Months Three Months Change compared to Constant currency
Ended July 31, Ended July 31, prior fiscal year change compared to
2020 2019 prior fiscal year
$ % %
---
Net Revenue:
Americas
U.S. $
309.5 $
267.9 $
41.6 16
%
*
Other Americas 62.0 58.0 4.0 7
%
*
Total Americas 371.5 325.9 45.6 14
%
% 14
EMEA 354.7 316.2 38.5 12
%
% 16
APAC 186.9 154.7 32.2 21
%
% 21
Total Net Revenue $
913.1 $
796.8 $
116.3 15
%
% 16
Emerging Economies $
113.7 $
97.4 $
16.3 17
%
% 17
____________________
* 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 Three Months Change compared to
Ended July 31, Ended July 31, prior fiscal year
(In millions,
except
percentages) 2020 2019
$ %
AEC $
397.0 $
334.2 $
62.8 19
%
AutoCAD and AutoCAD 271.9 231.3 40.6 18
LT
%
MFG 185.5 174.6 10.9 6
%
M&E 53.3 50.8 2.5 5
%
Other 5.4 5.9 (0.5) (8)
%
$
913.1 $
796.8 $
116.3 15
%
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 2021 takes into consideration the current economic environment and foreign exchange currency rate environment. A reconciliation between the fiscal 2021 GAAP and non-GAAP estimates is provided below or in the tables following this press release.
Third Quarter Fiscal 2021
Q3 FY21 Guidance Metrics
Q3 FY21
(ending October 31, 2020)
---
Revenue (in millions)
$930 - $945
EPS GAAP
$0.42 - $0.48
EPS non-GAAP (1)
$0.91 - $0.97
_______________
(1) Non-GAAP earnings per diluted share
excludes $0.45 related to stock-based
compensation expense, $0.07 for the
amortization of acquisition-related
intangibles, $0.01 for acquisition-related
costs, and ($0.04) related to GAAP-only
tax charges.
Full Year Fiscal 2021
FY21 Guidance Metrics
FY21
(ending January 31, 2021)
---
Billings (in millions) (1)
$4,070 - $4,170
Down (3.0%) - (0.5%)
Revenue (in millions) (1)
$3,715 - $3,765
Up 13.5% - 15.0%
GAAP operating margin 14.5% - 16.0%
Non-GAAP operating margin (2) 27.5% - 29.0%
EPS GAAP
$1.63 - $1.81
EPS non-GAAP (3)
$3.72 - $3.90
Free cash flow (in millions) (4)
$1,300 - $1,400
_______________
(1) Excluding the approximately $20 million
impact of foreign currency exchange rates
and hedge gains/losses, billings guidance
would be $4,090 -$4,190 million and
revenue guidance would be $3,735 -$3,785
million.
(2) Non-GAAP operating margin excludes
approximately 11% related to stock-based
compensation expense, approximately 2% for
the amortization of acquisition-related
intangibles, and less than 1% related to
acquisition-related costs.
(3) Non-GAAP earnings per diluted share
excludes $1.80 related to stock-based
compensation expense, $0.30 for the
amortization of acquisition-related
intangibles, $0.14 related to losses on
strategic investments and dispositions,
$0.04 related to acquisition-related
costs, partially offset by ($0.19) related
to a GAAP-only tax benefit.
(4) Free cash flow is cash flow from
operating activities less approximately $95
million of capital expenditures.
The third quarter and full-year fiscal 2021 outlook assume a projected annual effective tax rate of 23 percent and 16 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 providing additional information can be found at autodesk.com/investor.
To help better understand our financial performance, we use several key performance metrics including billings, recurring revenue and net revenue retention rate ("NR3"). 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.
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.
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.
Make Business: Represents certain cloud-based product subscriptions. Main products include, but are not limited to, Assemble, BIM 360, BuildingConnected, PlanGrid, Fusion 360 and Shotgun. Certain products, such as Fusion 360, incorporate both Design and Make functionality and are classified as Make.
Net Revenue Retention Rate (NR3): Measures the year-over-year change in subscription and maintenance revenue for the population of customers that existed one year ago ("base customers"). Net revenue retention rate is calculated by dividing the current quarter subscription and maintenance revenue related to base customers by the total corresponding quarter subscription and maintenance revenue from one year ago. Subscription and maintenance 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. Subscription and maintenance 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. Beginning with the first quarter of fiscal 2021, Autodesk modified its definition of NR3 to the definition above. The effect of this change is not material for the periods presented.
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 (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.
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 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; developments in the COVID-19 pandemic and the resulting impact on our business and operations; general market, political, economic, and business conditions, including from an economic downturn or recession in the United States or in other countries around the world; 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 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
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 uses its investors.autodesk.com website as a means of disclosing material non-public information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings and public conference calls and webcasts.
Autodesk, AutoCAD, AutoCAD LT, BIM 360 and Fusion 360 are registered trademarks of Autodesk, Inc., and/or its subsidiaries and/or affiliates in the 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.
© 2020 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,
2020 2019 2020 2019
---
(Unaudited)
(Unaudited)
Net revenue:
Subscription $
841.2 $
663.7 $
1,644.2 $
1,259.5
Maintenance 51.2 103.5 113.3 215.5
Total subscription and
maintenance revenue 892.4 767.2 1,757.5 1,475.0
Other 20.7 29.6 41.3 57.3
Total net revenue 913.1 796.8 1,798.8 1,532.3
Cost of revenue:
Cost of subscription and
maintenance revenue 58.5 53.0 115.9 112.7
Cost of other revenue 15.0 17.9 32.1 31.7
Amortization of developed
technology 7.4 8.6 14.8 17.8
Total cost of revenue 80.9 79.5 162.8 162.2
Gross profit 832.2 717.3 1,636.0 1,370.1
Operating expenses:
Marketing and sales 350.9 316.8 692.2 630.1
Research and development 232.5 215.4 449.9 421.0
General and administrative 93.2 101.4 198.0 200.5
Amortization of purchased
intangibles 9.5 9.7 19.2 19.5
Restructuring and other exit
costs, net - 0.2 0.4
Total operating expenses 686.1 643.5 1,359.3 1,271.5
Income from operations 146.1 73.8 276.7 98.6
Interest and other expense,
net (17.1) (7.3) (57.2) (23.5)
Income before income taxes 129.0 66.5 219.5 75.1
Provision for income taxes (30.8) (26.3) (54.8) (59.1)
Net income $
98.2 $
40.2 $
164.7 $
16.0
Basic net income per share $
0.45 $
0.18 $
0.75 $
0.07
Diluted net income per share $
0.44 $
0.18 $
0.74 $
0.07
Weighted average shares used
in computing basic net
income per share 219.2 219.6 219.2 219.6
Weighted average shares used
in computing diluted net
income per share 222.2 222.4 222.0 222.3
Autodesk, Inc.
Condensed Consolidated Balance Sheets
(In millions)
July 31, 2020 January 31, 2020
---
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $
1,439.8 $
1,774.7
Marketable securities 79.7 69.0
Accounts receivable, net 490.1 652.3
Prepaid expenses and other current assets 194.3 163.3
Total current assets 2,203.9 2,659.3
Computer equipment, software, furniture and leasehold improvements, net 177.8 161.7
Operating lease right-of-use assets 416.2 438.8
Developed technologies, net 61.0 70.9
Goodwill 2,459.1 2,445.0
Deferred income taxes, net 51.5 56.4
Long-term other assets 377.8 347.2
Total assets $
5,747.3 $
6,179.3
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $
99.2 $
83.7
Accrued compensation 193.6 272.1
Accrued income taxes 32.5 21.2
Deferred revenue 2,102.1 2,176.1
Operating lease liabilities 53.8 48.1
Current portion of long-term notes payable, net - 449.7
Other accrued liabilities 138.4 168.3
Total current liabilities 2,619.6 3,219.2
Long-term deferred revenue 776.8 831.0
Long-term operating lease liabilities 393.3 411.7
Long-term income taxes payable 20.2 19.1
Long-term deferred income taxes 89.9 82.5
Long-term notes payable, net 1,636.1 1,635.1
Long-term other liabilities 144.1 119.8
Stockholders' equity (deficit):
Common stock and additional paid-in capital 2,492.7 2,317.0
Accumulated other comprehensive loss (154.5) (160.3)
Accumulated deficit (2,270.9) (2,295.8)
Total stockholders' equity (deficit) 67.3 (139.1)
Total liabilities and stockholders' equity (deficit) $
5,747.3 $
6,179.3
Autodesk, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)
Six Months Ended July 31,
2020 2019
---
(Unaudited)
Operating activities:
Net income $
164.7 $
16.0
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, amortization and
accretion 60.0 64.8
Stock-based compensation expense 194.1 163.4
Deferred income taxes 14.5 35.8
Restructuring and other exit costs,
net - 0.4
Other 36.0 (4.2)
Changes in operating assets and liabilities
Accounts receivable 162.7 125.8
Prepaid expenses and other assets (52.0) 27.4
Accounts payable and other liabilities (42.8) (138.1)
Deferred revenue (130.0) 158.3
Accrued income taxes 11.3 (9.1)
Net cash provided by operating
activities 418.5 440.5
Investing activities:
Purchases of marketable securities (17.0) (19.9)
Sales of marketable securities - 22.4
Maturities of marketable securities 11.0 5.0
Capital expenditures (46.7) (29.5)
Purchases of developed technologies (4.8)
Other investing activities (54.3) (10.5)
Net cash used in investing activities (111.8) (32.5)
Financing activities:
Proceeds from issuance of common
stock, net of issuance costs 58.5 49.7
Taxes paid related to net share
settlement of equity awards (39.6) (31.2)
Repurchases of common stock (209.0) (134.6)
Repayment of debt (450.0) (250.0)
Other financing activities (2.5)
Net cash used in financing activities (642.6) (366.1)
Effect of exchange rate changes on
cash and cash equivalents 1.0 (4.0)
Net (decrease) increase in cash and
cash equivalents (334.9) 37.9
Cash and cash equivalents at beginning
of period 1,774.7 886.0
Cash and cash equivalents at end of
period $
1,439.8 $
923.9
Supplemental cash flow disclosure:
Non-cash financing activities:
Fair value of common stock issued to
settle liability-classified
restricted stock units $
28.7
$
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 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
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 non-GAAP results reconciled to GAAP results included in this release.
Three Months Ended July 31, Six Months Ended July 31,
2020 2019 2020 2019
---
(Unaudited)
(Unaudited)
GAAP cost of
subscription and
maintenance revenue $
58.5 $
53.0 $
115.9 $
112.7
Stock-based
compensation
expense (4.2) (3.4) (7.8) (7.0)
Acquisition-related
costs (0.1) (0.3)
Non-GAAP cost of
subscription and
maintenance revenue $
54.2 $
49.6 $
107.8 $
105.7
GAAP cost of other
revenue $
15.0 $
17.9 $
32.1 $
31.7
Stock-based
compensation
expense (1.6) (1.4) (3.1) (2.7)
Non-GAAP cost of
other revenue $
13.4 $
16.5 $
29.0 $
29.0
GAAP amortization of
developed
technologies $
7.4 $
8.6 $
14.8 $
17.8
Amortization of
developed
technologies (7.4) (8.6) (14.8) (17.8)
Non-GAAP
amortization of
developed
technologies
$
$
$
$
GAAP gross profit $
832.2 $
717.3 $
1,636.0 $
1,370.1
Stock-based
compensation
expense 5.8 4.8 10.9 9.7
Amortization of
developed
technologies 7.4 8.6 14.8 17.8
Acquisition-related
costs 0.1 0.3
Non-GAAP gross
profit $
845.5 $
730.7 $
1,662.0 $
1,397.6
GAAP marketing and
sales $
350.9 $
316.8 $
692.2 $
630.1
Stock-based
compensation
expense (43.4) (36.0) (84.1) (68.5)
Acquisition-related
costs (1.6) (0.1) (3.3) (0.1)
Non-GAAP marketing
and sales $
305.9 $
280.7 $
604.8 $
561.5
GAAP research and
development $
232.5 $
215.4 $
449.9 $
421.0
Stock-based
compensation
expense (35.2) (30.8) (68.2) (57.5)
Acquisition-related
costs (0.4) (0.4) (0.4) (0.4)
Non-GAAP research
and development $
196.9 $
184.2 $
381.3 $
363.1
GAAP general and
administrative $
93.2 $
101.4 $
198.0 $
200.5
Stock-based
compensation
expense (11.5) (16.6) (30.9) (27.7)
Acquisition-related
costs (1.4) (5.5) (1.4) (18.2)
Non-GAAP general
and administrative $
80.3 $
79.3 $
165.7 $
154.6
GAAP amortization of
purchased
intangibles $
9.5 $
9.7 $
19.2 $
19.5
Amortization of
purchased
intangibles (9.5) (9.7) (19.2) (19.5)
Non-GAAP
amortization of
purchased
intangibles
$
$
$
$
GAAP restructuring
and other exit
costs, net
$ $
0.2
$ $
0.4
Restructuring and
other exit costs,
net - (0.2) (0.4)
Non-GAAP
restructuring and
other exit costs,
net
$
$
$
$
GAAP operating
expenses $
686.1 $
643.5 $
1,359.3 $
1,271.5
Stock-based
compensation
expense (90.1) (83.4) (183.2) (153.7)
Amortization of
purchased
intangibles (9.5) (9.7) (19.2) (19.5)
Acquisition-related
costs (3.4) (6.0) (5.1) (18.7)
Restructuring and
other exit costs,
net - (0.2) (0.4)
Non-GAAP operating
expenses $
583.1 $
544.2 $
1,151.8 $
1,079.2
GAAP spend $
767.0 $
723.0 $
1,522.1 $
1,433.7
Stock-based
compensation
expense (95.9) (88.2) (194.1) (163.4)
Amortization of
developed
technologies (7.4) (8.6) (14.8) (17.8)
Amortization of
purchased
intangibles (9.5) (9.7) (19.2) (19.5)
Acquisition-related
costs (3.5) (6.0) (5.4) (18.7)
Restructuring and
other exit costs,
net - (0.2) (0.4)
Non-GAAP spend $
650.7 $
610.3 $
1,288.6 $
1,213.9
GAAP operating 16
margin % 9
% 15
% 6
%
Stock-based
compensation %
expense 11 11
% 11
% 11
%
Amortization of
developed
technologies 1
% 1
% 1
% 1
%
Amortization of
purchased
intangibles 1
% 1
% 1
% 1
%
Acquisition-related
costs - % 1
% % 1
%
Non-GAAP operating 29
margin (1) % 23
% 28
% 21
%
===
GAAP income from
operations $
146.1 $
73.8 $
276.7 $
98.6
Stock-based
compensation
expense 95.9 88.2 194.1 163.4
Amortization of
developed
technologies 7.4 8.6 14.8 17.8
Amortization of
purchased
intangibles 9.5 9.7 19.2 19.5
Acquisition-related
costs 3.5 6.0 5.4 18.7
Restructuring and
other exit costs,
net - 0.2 0.4
Non-GAAP income
from operations $
262.4 $
186.5 $
510.2 $
318.4
GAAP interest and
other expense, net $
(17.1) $
(7.3) $
(57.2) $
(23.5)
Loss (gain) on
strategic
investments and
dispositions, net 14.3 (2.2) 30.9 2.8
Non-GAAP interest
and other expense,
net $
(2.8) $
(9.5) $
(26.3) $
(20.7)
GAAP provision for
income taxes $
(30.8) $
(26.3) $
(54.8) $
(59.1)
Discrete GAAP tax
items 0.6 3.3 1.1 1.0
Income tax effect of
non-GAAP
adjustments (11.4) (8.9) (23.8) 4.5
Non-GAAP provision
for income tax $
(41.6) $
(31.9) $
(77.5) $
(53.6)
GAAP net income $
98.2 $
40.2 $
164.7 $
16.0
Stock-based
compensation
expense 95.9 88.2 194.1 163.4
Amortization of
developed
technologies 7.4 8.6 14.8 17.8
Amortization of
purchased
intangibles 9.5 9.7 19.2 19.5
Acquisition-related
costs 3.5 6.0 5.4 18.7
Restructuring and
other exit costs,
net - 0.2 0.4
Loss (gain) on
strategic
investments and
dispositions, net 14.3 (2.2) 30.9 2.8
Discrete GAAP tax
items 0.6 3.3 1.1 1.0
Income tax effect of
non-GAAP
adjustments (11.4) (8.9) (23.8) 4.5
Non-GAAP net income $
218.0 $
145.1 $
406.4 $
244.1
GAAP diluted net
income per share $
0.44 $
0.18 $
0.74 $
0.07
Stock-based
compensation
expense 0.43 0.40 0.87 0.74
Amortization of
developed
technologies 0.03 0.04 0.07 0.08
Amortization of
purchased
intangibles 0.04 0.05 0.09 0.09
Acquisition-related
costs 0.03 0.02 0.03 0.09
Loss (gain) on
strategic
investments and
dispositions, net 0.06 (0.01) 0.14 0.01
Discrete GAAP tax
items - 0.01
Income tax effect of
non-GAAP
adjustments (0.05) (0.04) (0.11) 0.02
Non-GAAP diluted
net income per
share $
0.98 $
0.65 $
1.83 $
1.10
____________________
(1) Totals may not sum due to rounding.
Reconciliation of GAAP net cash provided by operating activities to non-GAAP free cash flow (unaudited)
(In millions) Net Cash Capital Free Cash Flow
Provided by Expenditures
Operating
Activities
---
Six months ending July 31, 2020 $
418.5 $
(46.7) $
371.8
Less three months ending April 30, 2020 327.3 (19.9) 307.4
Three months ending July 31, 2020 $
91.2 $
(26.8) $
64.4
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SOURCE Autodesk, Inc.
