[August 25, 2016] |
|
Autodesk Reports Strong Second Quarter Results
Autodesk,
Inc. (NASDAQ:ADSK) today reported financial results for the second
quarter of fiscal 2017.
Second Quarter Fiscal 2017
-
Total subscriptions increased 109,000 from the first quarter of fiscal
2017 to 2.82 million at the end of the second quarter. New model
subscriptions increased 125,000 from the first quarter of fiscal 2017
to 692,000.
-
Total annualized recurring revenue (ARR) was $1.47 billion, an
increase of 10 percent compared to the second quarter last year as
reported, and 14 percent on a constant currency basis. New model ARR
was $371 million and increased 82 percent compared to the second
quarter last year as reported, and 86 percent on a constant currency
basis.
-
Deferred revenue increased 23 percent to $1.52 billion, compared to
$1.24 billion in the second quarter last year.
-
Revenue was $551 million, a decrease of 10 percent compared to the
second quarter last year as reported, and 6 percent on a constant
currency basis. During Autodesk's business model transition, revenue
is negatively impacted as more revenue is recognized ratably rather
than up front and as new offerings generally have a lower initial
purchase price.
-
Total GAAP spend (cost of revenue plus operating expenses) was $614
million, an increase of 1 percent compared to the second quarter last
year. GAAP spend includes a charge of $16 million for a previously
announced restructuring and other facility exit costs.
-
Total non-GAAP spend was $525 million, a decrease of 4 percent
compared to the second quarter last year. A reconciliation of GAAP to
non-GAAP results is provided in the accompanying tables.
-
GAAP diluted net loss per share was $(0.44). GAAP diluted net loss per
share was $(1.18) in the second quarter last year.
-
Non-GAAP diluted net income per share was $0.05, compared to non-GAAP
diluted net income per share of $0.19 in the second quarter last year.
"We posted terrific second quarter results driven by growth in new model
subscriptions, the end of perpetual license sales, and diligent cost
control," said Carl Bass, Autodesk president and CEO. "We've now seen
several quarters of strong growth from our new model subscriptions, as
our customers and partners embrace a model that has greater flexibility
and a better user experience. Finally, we continued to extend our
leadership in the cloud during a quarter that delivered our largest-ever
increase in cloud subscriptions led by BIM 360 and Fusion 360."
Second Quarter Operational Overview
"Continued adoption of product subscription drove strong growth in new
model subscriptions, new model ARR, and deferred revenue," said Scott
Herren, Autodesk Chief Financial Officer. "We saw record volume of
product subscription for suites while also experiencing greater than
expected volume of perpetual licenses for suites, stemming from the
final availability of that offering. Based on our strong second quarter
results and progress on our business model transition, we remain
confident in our long-term goals of growing our subscription base by a
20% CAGR through our fiscal year 2020, which will drive a 24% CAGR in
ARR and $6 per share in free cash flow."
Total subscriptions were 2.82 million, a net increase of 109,000 from
the first quarter of fiscal 2017. Of total subscriptions, new model
subscriptions (product, enterprise flexible license, and cloud
subscription) were 692,000, a net increase of 125,000. The increase in
new model subscriptions was led by product subscriptions. Maintenance
subscriptions were 2.13 million, a net decrease of 16,000 from the first
quarter of fiscal 2017.
Total ARR for the second quarter increased 10 percent to $1.47 billion
compared to the second quarter last year as reported, and 14 percent on
a constant currency basis. New model ARR was $371 million and increased
82 percent compared to the second quarter last year as reported, and 86
percent on a constant currency basis. Maintenance ARR was $1.10 billion
and decreased 3 percent compared to the second quarter last year as
reported, and increased 1 percent on a constant currency basis. Total
recurring revenue in the second quarter was 67 percent of total revenue
compared to 55 percent of total revenue in the second quarter last year.
As a reminder, during the business model transition, revenue has been
and will be negatively impacted as more revenue is recognized ratably
rather than up front and as new product offerings generally have a lower
initial purchase price. As part of the business model transition,
Autodesk discontinued new perpetual license sales for most individual
products at the end of the fourth quarter of fiscal 2016 and suites at
the end of the second quarter of fiscal 2017.
Revenue in the Americas was $230 million, a decrease of 2 percent
compared to the second quarter last year as reported, and on a constant
currency basis. Revenue in EMEA was $221 million, a decrease of 2
percent compared to the second quarter last year as reported, and an
increase of 5 percent on a constant currency basis. Revenue in APAC was
$100 million, a decrease of 32 percent compared to the second quarter
last year as reported, and 30 percent on a constant currency basis.
Revenue from our Architecture, Engineering and Construction (AEC)
business segment was $253 million, an increase of 8 percent compared to
the second quarter last year. Revenue from our Manufacturing business
segment was $177 million, an increase of 3 percent compared to the
second quarter last year. Revenue from our Platform Solutions and
Emerging Business (PSEB) segment was $86 million, a decrease of 47
percent compared to the second quarter last year. Revenue from our Media
and Entertainment (M&E) business segment was $34 million, a decrease of
16 percent compared to the second quarter last year.
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 2017
assumes, among other things, a continuation of the current economic
environment and foreign exchange currency rate environment and the
continued success of our business model transition. A reconciliation
between the fiscal 2017 GAAP and non-GAAP estimates is provided below or
in the tables following this press release.
Third Quarter Fiscal 2017
Q3 FY17 Guidance Metrics
|
|
|
Q3 FY17 (ending October 31, 2016)
|
Revenue (in millions)
|
|
|
$470 - $485
|
EPS GAAP
|
|
|
($0.81) - ($0.74)
|
EPS non-GAAP (1)
|
|
|
($0.27) - ($0.22)
|
_______________
|
(1) Non-GAAP earnings per diluted share exclude $0.27 related to
stock-based compensation expense, between $0.15 and $0.13 related to
GAAP-only tax charges, $0.08 for the amortization of acquisition
related intangibles, and $0.04 related to restructuring charges and
other facility exit costs.
|
|
Full Year Fiscal 2017
FY17 Guidance Metrics
|
|
|
FY17 (ending January 31, 2017)
|
Revenue (in millions) (1)
|
|
|
$2,000 - $2,050
|
GAAP spend growth (cost of revenue plus operating expenses)
|
|
|
Approx. 2%
|
Non-GAAP spend growth (cost of revenue plus operating expenses)
(2)
|
|
|
Approx. (2%)
|
EPS GAAP
|
|
|
($2.97) - ($2.74)
|
EPS non-GAAP (3)
|
|
|
($0.70) - ($0.55)
|
Net subscription additions
|
|
|
475,000 - 525,000
|
_______________
|
(1) Excluding the impact of foreign currency exchange rates and
hedge gains/losses, revenue guidance would be $2,045 - $2,095
million.
|
(2) Non-GAAP spend excludes $226 million related to stock-based
compensation expense, $86 million related to restructuring charges
and other facility exit costs, and $69 million for the amortization
of acquisition-related intangibles.
|
(3) Non-GAAP earnings per diluted share excludes $1.01 related to
stock-based compensation expense, between $0.56 and $0.48 of
GAAP-only tax charges, $0.39 related to restructuring charges and
other facility exit costs, and $0.31 for the amortization of
acquisition-related intangibles.
|
|
The third quarter and full year fiscal 2017 outlook assume a projected
annual effective tax rate of (12) 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 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/investors.
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/investors.
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. "New Model ARR" captures ARR
relating to new model subscription offerings. Recurring revenue acquired
with the acquisition of a business may cause variability in the
comparison of this calculation.
ARR is currently our key performance metric 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 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. Our constant currency methodology removes all
hedging gains and losses from the calculation and applies a constant
exchange rate across periods.
Safe Harbor Statement
This press release contains forward-looking statements that involve
risks and uncertainties, including statements regarding our long-term
subscription, ARR and free cash flow targets, statements in the
paragraphs under "Business Outlook" above, other statements about our
short-term and long-term goals, 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, 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, including the introduction of additional ratable revenue
streams and our continuing efforts to attract customers to our
cloud-based offerings and expenses related to the transition of our
business model; 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; the impact of non-cash charges on our financial results;
fluctuation in foreign currency exchange rates; the success of our
foreign currency hedging program; failure to control our expenses; 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 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, 2016 and Quarterly Report on
Form 10-Q for the fiscal quarter ended April 30, 2016, 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 is a registered trademark 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.
© 2016 Autodesk, Inc. All rights reserved.
|
Autodesk, Inc.
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Operations (1)
|
|
|
|
|
|
|
|
(In millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
July 31,
|
|
July 31,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
(Unaudited)
|
Net revenue:
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
$
|
322.0
|
|
|
$
|
319.0
|
|
|
$
|
648.0
|
|
|
$
|
638.8
|
|
License and other
|
|
|
|
228.7
|
|
|
|
290.5
|
|
|
|
414.6
|
|
|
|
617.2
|
|
Total net revenue
|
|
|
|
550.7
|
|
|
|
609.5
|
|
|
|
1,062.6
|
|
|
|
1,256.0
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
Cost of subscription revenue
|
|
|
|
38.2
|
|
|
|
40.0
|
|
|
|
78.0
|
|
|
|
78.7
|
|
Cost of license and other revenue
|
|
|
|
46.9
|
|
|
|
53.0
|
|
|
|
99.5
|
|
|
|
106.1
|
|
Total cost of revenue
|
|
|
|
85.1
|
|
|
|
93.0
|
|
|
|
177.5
|
|
|
|
184.8
|
|
Gross profit
|
|
|
|
465.6
|
|
|
|
516.5
|
|
|
|
885.1
|
|
|
|
1,071.2
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Marketing and sales
|
|
|
|
243.1
|
|
|
|
240.8
|
|
|
|
483.9
|
|
|
|
494.7
|
|
Research and development
|
|
|
|
193.0
|
|
|
|
193.1
|
|
|
|
386.5
|
|
|
|
387.6
|
|
General and administrative
|
|
|
|
68.6
|
|
|
|
70.1
|
|
|
|
143.3
|
|
|
|
146.0
|
|
Amortization of purchased intangibles
|
|
|
|
7.8
|
|
|
|
8.2
|
|
|
|
15.7
|
|
|
|
17.1
|
|
Restructuring charges and other facility exit costs, net
|
|
|
|
16.0
|
|
|
|
-
|
|
|
|
68.3
|
|
|
|
-
|
|
Total operating expenses
|
|
|
|
528.5
|
|
|
|
512.2
|
|
|
|
1,097.7
|
|
|
|
1,045.4
|
|
(Loss) income from operations
|
|
|
|
(62.9
|
)
|
|
|
4.3
|
|
|
|
(212.6
|
)
|
|
|
25.8
|
|
Interest and other expense, net
|
|
|
|
(10.1
|
)
|
|
|
(3.4
|
)
|
|
|
(13.7
|
)
|
|
|
(3.1
|
)
|
(Loss) income before income taxes
|
|
|
|
(73.0
|
)
|
|
|
0.9
|
|
|
|
(226.3
|
)
|
|
|
22.7
|
|
Provision for income taxes
|
|
|
|
(25.2
|
)
|
|
|
(269.5
|
)
|
|
|
(39.6
|
)
|
|
|
(272.2
|
)
|
Net loss
|
|
|
$
|
(98.2
|
)
|
|
$
|
(268.6
|
)
|
|
$
|
(265.9
|
)
|
|
$
|
(249.5
|
)
|
Basic net loss per share
|
|
|
$
|
(0.44
|
)
|
|
$
|
(1.18
|
)
|
|
$
|
(1.19
|
)
|
|
$
|
(1.10
|
)
|
Diluted net loss per share
|
|
|
$
|
(0.44
|
)
|
|
$
|
(1.18
|
)
|
|
$
|
(1.19
|
)
|
|
$
|
(1.10
|
)
|
Weighted average shares used in computing basic net loss per share
|
|
|
|
223.2
|
|
|
|
227.0
|
|
|
|
223.8
|
|
|
|
227.1
|
|
Weighted average shares used in computing diluted net loss per share
|
|
|
|
223.2
|
|
|
|
227.0
|
|
|
|
223.8
|
|
|
|
227.1
|
|
_____________________
|
(1) As Autodesk has elected to early adopt ASU 2016-09 in the second
quarter of fiscal 2017, we are required to reflect any adjustments
as of February 1, 2016, the beginning of the annual period that
includes the interim period of adoption. As a result of recording
forfeitures as they occur, our stock based compensation expense
decreased by $5.3 million for the three months ended April 30, 2016.
Incorporating these non-cash, GAAP only, revisions results in a GAAP
net loss of $167.7 million, and a GAAP diluted net loss per share of
$0.75 for the three months ended April 30, 2016, which is reflected
in the results for the six months ended July 31, 2016 above.
|
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|
Autodesk, Inc.
|
|
|
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Condensed Consolidated Balance Sheets
|
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|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 31, 2016
|
|
January 31, 2016
|
|
|
|
(Unaudited)
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
1,467.3
|
|
|
$
|
1,353.0
|
|
Marketable securities
|
|
|
|
597.6
|
|
|
|
897.9
|
|
Accounts receivable, net
|
|
|
|
306.9
|
|
|
|
653.6
|
|
Prepaid expenses and other current assets
|
|
|
|
114.7
|
|
|
|
88.6
|
|
Total current assets
|
|
|
|
2,486.5
|
|
|
|
2,993.1
|
|
Marketable securities
|
|
|
|
505.6
|
|
|
|
532.3
|
|
Computer equipment, software, furniture and leasehold improvements,
net
|
|
|
|
173.0
|
|
|
|
169.3
|
|
Developed technologies, net
|
|
|
|
66.6
|
|
|
|
70.8
|
|
Goodwill
|
|
|
|
1,597.4
|
|
|
|
1,535.0
|
|
Deferred income taxes, net
|
|
|
|
9.8
|
|
|
|
9.2
|
|
Other assets
|
|
|
|
208.5
|
|
|
|
205.6
|
|
Total assets
|
|
|
$
|
5,047.4
|
|
|
$
|
5,515.3
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
110.3
|
|
|
$
|
119.9
|
|
Accrued compensation
|
|
|
|
160.0
|
|
|
|
243.3
|
|
Accrued income taxes
|
|
|
|
54.1
|
|
|
|
29.4
|
|
Deferred revenue
|
|
|
|
1,107.1
|
|
|
|
1,068.9
|
|
Other accrued liabilities
|
|
|
|
128.1
|
|
|
|
129.5
|
|
Total current liabilities
|
|
|
|
1,559.6
|
|
|
|
1,591.0
|
|
Long term deferred revenue
|
|
|
|
412.9
|
|
|
|
450.3
|
|
Long term income taxes payable
|
|
|
|
42.7
|
|
|
|
161.4
|
|
Long term deferred income taxes
|
|
|
|
66.6
|
|
|
|
67.7
|
|
Long term notes payable, net
|
|
|
|
1,489.2
|
|
|
|
1,487.7
|
|
Other liabilities
|
|
|
|
144.7
|
|
|
|
137.6
|
|
Stockholders' equity:
|
|
|
|
|
|
Preferred stock
|
|
|
|
-
|
|
|
|
-
|
|
Common stock and additional paid-in capital
|
|
|
|
1,857.1
|
|
|
|
1,821.5
|
|
Accumulated other comprehensive loss
|
|
|
|
(129.8
|
)
|
|
|
(121.1
|
)
|
Retained earnings
|
|
|
|
(395.6
|
)
|
|
|
(80.8
|
)
|
Total stockholders' equity
|
|
|
|
1,331.7
|
|
|
|
1,619.6
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
5,047.4
|
|
|
$
|
5,515.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Autodesk, Inc.
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended July 31,
|
|
|
|
2016
|
|
2015
|
|
|
|
(Unaudited)
|
Operating activities:
|
|
|
|
|
|
Net loss
|
|
|
$
|
(265.9
|
)
|
|
$
|
(249.5
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation, amortization and accretion
|
|
|
|
70.4
|
|
|
|
74.0
|
|
Stock-based compensation expense
|
|
|
|
105.9
|
|
|
|
90.9
|
|
Deferred income taxes
|
|
|
|
(9.2
|
)
|
|
|
223.0
|
|
Restructuring charges and other facility exit costs, net
|
|
|
|
68.3
|
|
|
|
-
|
|
Other operating activities
|
|
|
|
(6.2
|
)
|
|
|
(15.3
|
)
|
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
Accounts receivable
|
|
|
|
346.9
|
|
|
|
64.4
|
|
Prepaid expenses and other current assets
|
|
|
|
(23.3
|
)
|
|
|
(19.4
|
)
|
Accounts payable and accrued liabilities
|
|
|
|
(44.6
|
)
|
|
|
(80.3
|
)
|
Deferred revenue
|
|
|
|
(1.4
|
)
|
|
|
79.2
|
|
Accrued income taxes
|
|
|
|
(94.5
|
)
|
|
|
(3.3
|
)
|
Net cash provided by operating activities
|
|
|
|
146.4
|
|
|
|
163.7
|
|
Investing activities:
|
|
|
|
|
|
Purchases of marketable securities
|
|
|
|
(810.9
|
)
|
|
|
(1,314.2
|
)
|
Sales of marketable securities
|
|
|
|
354.7
|
|
|
|
187.0
|
|
Maturities of marketable securities
|
|
|
|
791.3
|
|
|
|
541.0
|
|
Capital expenditures
|
|
|
|
(42.6
|
)
|
|
|
(29.8
|
)
|
Acquisitions, net of cash acquired
|
|
|
|
(85.2
|
)
|
|
|
(37.5
|
)
|
Other investing activities
|
|
|
|
(6.7
|
)
|
|
|
(13.1
|
)
|
Net cash provided by (used in) investing activities
|
|
|
|
200.6
|
|
|
|
(666.6
|
)
|
Financing activities:
|
|
|
|
|
|
Proceeds from issuance of common stock, net of issuance costs
|
|
|
|
54.2
|
|
|
|
61.9
|
|
Taxes paid related to net share settlement of equity awards
|
|
|
|
(19.9
|
)
|
|
|
(28.7
|
)
|
Repurchase and retirement of common stock
|
|
|
|
(270.0
|
)
|
|
|
(207.7
|
)
|
Proceeds from debt, net of discount
|
|
|
|
-
|
|
|
|
748.3
|
|
Other financing activities
|
|
|
|
-
|
|
|
|
(6.3
|
)
|
Net cash (used in) provided by financing activities
|
|
|
|
(235.7
|
)
|
|
|
567.5
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
3.0
|
|
|
|
(2.1
|
)
|
Net increase in cash and cash equivalents
|
|
|
|
114.3
|
|
|
|
62.5
|
|
Cash and cash equivalents at beginning of the period
|
|
|
|
1,353.0
|
|
|
|
1,410.6
|
|
Cash and cash equivalents at end of the period
|
|
|
$
|
1,467.3
|
|
|
$
|
1,473.1
|
|
|
|
|
|
|
|
|
|
|
|
|
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, Autodesk provides investors with certain non-GAAP
measures including non-GAAP gross margin, non-GAAP operating
expenses, non-GAAP operating margin, non-GAAP net income, non-GAAP
net income per share, and non-GAAP diluted shares used in per
share calculation. These non-GAAP financial measures are adjusted
to exclude certain costs, expenses, gains and losses, including
stock-based compensation expense, restructuring charges and other
facility exit costs, amortization of purchased intangibles, gain
and loss on strategic investments, and related income tax
expenses. See our reconciliation of GAAP financial measures to
non-GAAP financial measures herein. We believe these exclusions
are appropriate to enhance an overall understanding of our past
financial performance and also our prospects for the future, as
well as to facilitate comparisons with our historical operating
results. These adjustments to our GAAP results are made with the
intent of providing both management and investors a more complete
understanding of Autodesk's underlying operational results and
trends and our marketplace performance. For example, non-GAAP
results are an indication of our baseline performance before
gains, losses or other charges that are considered by management
to be outside our core operating results. In addition, these
non-GAAP financial measures are among the indicators management
uses as a basis for our planning and forecasting of future periods.
|
|
There are limitations in using non-GAAP financial measures because
the non-GAAP financial measures are not prepared in accordance with
generally accepted accounting principles 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. The presentation of this additional information is not
meant to be considered in isolation or as a substitute for the
directly comparable financial measures prepared in accordance with
GAAP in the United States. Investors should review the
reconciliation of the non-GAAP financial measures to their most
directly comparable GAAP financial measures as provided in the
tables accompanying this press release.
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
GAAP cost of subscription revenue
|
|
$
|
38.2
|
|
|
$
|
40.0
|
|
|
$
|
78.0
|
|
|
$
|
78.7
|
|
Stock-based compensation expense
|
|
|
(1.7
|
)
|
|
|
(1.2
|
)
|
|
|
(3.5
|
)
|
|
|
(2.6
|
)
|
Amortization of developed technology
|
|
|
(0.1
|
)
|
|
|
(0.8
|
)
|
|
|
(0.4
|
)
|
|
|
(1.9
|
)
|
Non-GAAP cost of subscription revenue
|
|
$
|
36.4
|
|
|
$
|
38.0
|
|
|
$
|
74.1
|
|
|
$
|
74.2
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of license and other revenue
|
|
$
|
46.9
|
|
|
$
|
53.0
|
|
|
$
|
99.5
|
|
|
$
|
106.1
|
|
Stock-based compensation expense
|
|
|
(1.7
|
)
|
|
|
(1.2
|
)
|
|
|
(3.3
|
)
|
|
|
(2.7
|
)
|
Amortization of developed technology
|
|
|
(10.6
|
)
|
|
|
(11.2
|
)
|
|
|
(21.2
|
)
|
|
|
(23.6
|
)
|
Non-GAAP cost of license and other revenue
|
|
$
|
34.6
|
|
|
$
|
40.6
|
|
|
$
|
75.0
|
|
|
$
|
79.8
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
465.6
|
|
|
$
|
516.5
|
|
|
$
|
885.1
|
|
|
$
|
1,071.2
|
|
Stock-based compensation expense
|
|
|
3.4
|
|
|
|
2.4
|
|
|
|
6.8
|
|
|
|
5.3
|
|
Amortization of developed technology
|
|
|
10.7
|
|
|
|
12.0
|
|
|
|
21.6
|
|
|
|
25.5
|
|
Non-GAAP gross profit
|
|
$
|
479.7
|
|
|
$
|
530.9
|
|
|
$
|
913.5
|
|
|
$
|
1,102.0
|
|
|
|
|
|
|
|
|
|
|
GAAP marketing and sales
|
|
$
|
243.1
|
|
|
$
|
240.8
|
|
|
$
|
483.9
|
|
|
$
|
494.7
|
|
Stock-based compensation expense
|
|
|
(23.3
|
)
|
|
|
(17.3
|
)
|
|
|
(44.8
|
)
|
|
|
(39.0
|
)
|
Non-GAAP marketing and sales
|
|
$
|
219.8
|
|
|
$
|
223.5
|
|
|
$
|
439.1
|
|
|
$
|
455.7
|
|
|
|
|
|
|
|
|
|
|
GAAP research and development
|
|
$
|
193.0
|
|
|
$
|
193.1
|
|
|
$
|
386.5
|
|
|
$
|
387.6
|
|
Stock-based compensation expense
|
|
|
(20.2
|
)
|
|
|
(14.8
|
)
|
|
|
(39.1
|
)
|
|
|
(32.4
|
)
|
Non-GAAP research and development
|
|
$
|
172.8
|
|
|
$
|
178.3
|
|
|
$
|
347.4
|
|
|
$
|
355.2
|
|
|
|
|
|
|
|
|
|
|
GAAP general and administrative
|
|
$
|
68.6
|
|
|
$
|
70.1
|
|
|
$
|
143.3
|
|
|
$
|
146.0
|
|
Stock-based compensation expense
|
|
|
(7.4
|
)
|
|
|
(6.2
|
)
|
|
|
(15.2
|
)
|
|
|
(14.2
|
)
|
Non-GAAP general and administrative
|
|
$
|
61.2
|
|
|
$
|
63.9
|
|
|
$
|
128.1
|
|
|
$
|
131.8
|
|
|
|
|
|
|
|
|
|
|
GAAP amortization of purchased intangibles
|
|
$
|
7.8
|
|
|
$
|
8.2
|
|
|
$
|
15.7
|
|
|
$
|
17.1
|
|
Amortization of purchased intangibles
|
|
|
(7.8
|
)
|
|
|
(8.2
|
)
|
|
|
(15.7
|
)
|
|
|
(17.1
|
)
|
Non-GAAP amortization of purchased intangibles
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
GAAP restructuring charges and other facility exit costs, net
|
|
$
|
16.0
|
|
|
$
|
-
|
|
|
$
|
68.3
|
|
|
$
|
-
|
|
Restructuring charges and other facility exit costs, net
|
|
|
(16.0
|
)
|
|
|
-
|
|
|
|
(68.3
|
)
|
|
|
-
|
|
Non-GAAP restructuring charges and other facility exit costs, net
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
528.5
|
|
|
$
|
512.2
|
|
|
$
|
1,097.7
|
|
|
$
|
1,045.4
|
|
Stock-based compensation expense
|
|
|
(50.9
|
)
|
|
|
(38.3
|
)
|
|
|
(99.1
|
)
|
|
|
(85.6
|
)
|
Amortization of purchased intangibles
|
|
|
(7.8
|
)
|
|
|
(8.2
|
)
|
|
|
(15.7
|
)
|
|
|
(17.1
|
)
|
Restructuring charges and other facility exit costs, net
|
|
|
(16.0
|
)
|
|
|
-
|
|
|
|
(68.3
|
)
|
|
|
-
|
|
Non-GAAP operating expenses
|
|
$
|
453.8
|
|
|
$
|
465.7
|
|
|
$
|
914.6
|
|
|
$
|
942.7
|
|
|
|
|
|
|
|
|
|
|
GAAP (loss) income from operations
|
|
$
|
(62.9
|
)
|
|
$
|
4.3
|
|
|
$
|
(212.6
|
)
|
|
$
|
25.8
|
|
Stock-based compensation expense
|
|
|
54.3
|
|
|
|
40.7
|
|
|
|
105.9
|
|
|
|
90.9
|
|
Amortization of developed technology
|
|
|
10.7
|
|
|
|
12.0
|
|
|
|
21.6
|
|
|
|
25.5
|
|
Amortization of purchased intangibles
|
|
|
7.8
|
|
|
|
8.2
|
|
|
|
15.7
|
|
|
|
17.1
|
|
Restructuring charges and other facility exit costs, net
|
|
|
16.0
|
|
|
|
-
|
|
|
|
68.3
|
|
|
|
-
|
|
Non-GAAP income (loss) from operations
|
|
$
|
25.9
|
|
|
$
|
65.2
|
|
|
$
|
(1.1
|
)
|
|
$
|
159.3
|
|
|
|
|
|
|
|
|
|
|
GAAP interest and other expense, net
|
|
$
|
(10.1
|
)
|
|
$
|
(3.4
|
)
|
|
$
|
(13.7
|
)
|
|
$
|
(3.1
|
)
|
Loss (gain) on strategic investments
|
|
|
0.3
|
|
|
|
(2.4
|
)
|
|
|
(0.2
|
)
|
|
|
(3.4
|
)
|
Non-GAAP interest and other expense, net
|
|
$
|
(9.8
|
)
|
|
$
|
(5.8
|
)
|
|
$
|
(13.9
|
)
|
|
$
|
(6.5
|
)
|
|
|
|
|
|
|
|
|
|
GAAP provision for income taxes
|
|
$
|
(25.2
|
)
|
|
$
|
(269.5
|
)
|
|
$
|
(39.6
|
)
|
|
$
|
(272.2
|
)
|
Discrete GAAP tax benefit items
|
|
|
14.9
|
|
|
|
4.3
|
|
|
|
13.0
|
|
|
|
1.2
|
|
Establishment of valuation allowance on deferred tax assets
|
|
|
-
|
|
|
|
230.9
|
|
|
|
-
|
|
|
|
230.9
|
|
Income tax effect of non-GAAP adjustments
|
|
|
6.1
|
|
|
|
18.9
|
|
|
|
30.5
|
|
|
|
0.4
|
|
Non-GAAP (provision) benefit for income tax
|
|
$
|
(4.2
|
)
|
|
$
|
(15.4
|
)
|
|
$
|
3.9
|
|
|
$
|
(39.7
|
)
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
$
|
(98.2
|
)
|
|
$
|
(268.6
|
)
|
|
$
|
(265.9
|
)
|
|
$
|
(249.5
|
)
|
Stock-based compensation expense
|
|
|
54.3
|
|
|
|
40.7
|
|
|
|
105.9
|
|
|
|
90.9
|
|
Amortization of developed technology
|
|
|
10.7
|
|
|
|
12.0
|
|
|
|
21.6
|
|
|
|
25.5
|
|
Amortization of purchased intangibles
|
|
|
7.8
|
|
|
|
8.2
|
|
|
|
15.7
|
|
|
|
17.1
|
|
Restructuring charges and other facility exit costs, net
|
|
|
16.0
|
|
|
|
-
|
|
|
|
68.3
|
|
|
|
-
|
|
Loss (gain) on strategic investments
|
|
|
0.3
|
|
|
|
(2.4
|
)
|
|
|
(0.2
|
)
|
|
|
(3.4
|
)
|
Discrete GAAP tax benefit items
|
|
|
14.9
|
|
|
|
4.3
|
|
|
|
13.0
|
|
|
|
1.2
|
|
Establishment of valuation allowance on deferred tax assets
|
|
|
-
|
|
|
|
230.9
|
|
|
|
-
|
|
|
|
230.9
|
|
Income tax effect of non-GAAP adjustments
|
|
|
6.1
|
|
|
|
18.9
|
|
|
|
30.5
|
|
|
|
0.4
|
|
Non-GAAP net income (loss)
|
|
$
|
11.9
|
|
|
$
|
44.0
|
|
|
$
|
(11.1
|
)
|
|
$
|
113.1
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net loss per share
|
|
$
|
(0.44
|
)
|
|
$
|
(1.18
|
)
|
|
$
|
(1.19
|
)
|
|
$
|
(1.10
|
)
|
Stock-based compensation expense
|
|
|
0.24
|
|
|
|
0.18
|
|
|
|
0.47
|
|
|
|
0.39
|
|
Amortization of developed technology
|
|
|
0.05
|
|
|
|
0.05
|
|
|
|
0.10
|
|
|
|
0.11
|
|
Amortization of purchased intangibles
|
|
|
0.03
|
|
|
|
0.04
|
|
|
|
0.07
|
|
|
|
0.07
|
|
Restructuring charges and other facility exit costs, net
|
|
|
0.07
|
|
|
|
-
|
|
|
|
0.30
|
|
|
|
-
|
|
Loss (gain) on strategic investments
|
|
|
-
|
|
|
|
(0.01
|
)
|
|
|
-
|
|
|
|
(0.01
|
)
|
Discrete GAAP tax benefit items
|
|
|
0.07
|
|
|
|
0.02
|
|
|
|
0.06
|
|
|
|
0.02
|
|
Establishment of valuation allowance on deferred tax assets
|
|
|
-
|
|
|
|
1.01
|
|
|
|
-
|
|
|
|
1.01
|
|
Income tax effect of non-GAAP adjustments
|
|
|
0.03
|
|
|
|
0.08
|
|
|
|
0.14
|
|
|
|
-
|
|
Non-GAAP diluted net income (loss) per share
|
|
$
|
0.05
|
|
|
$
|
0.19
|
|
|
$
|
(0.05
|
)
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted shares used in per share calculation
|
|
|
223.2
|
|
|
|
227.0
|
|
|
|
223.8
|
|
|
|
227.1
|
|
Shares included in non-GAAP net income per share, but excluded from
GAAP net loss per share as they would have been anti-dilutive
|
|
|
4.2
|
|
|
|
4.1
|
|
|
|
-
|
|
|
|
4.5
|
|
Non-GAAP diluted weighted average shares used in per share
calculation
|
|
|
227.4
|
|
|
|
231.1
|
|
|
|
223.8
|
|
|
|
231.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160825006126/en/
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