Autodesk, Inc. today reported financial results for the second quarter of fiscal 2018.
Second Quarter Fiscal 2018
- Subscription plan (formerly known as new model) annualized recurring revenue (ARR) was $784 million and increased 94 percent compared to the second quarter last year as reported, and 98 percent on a constant currency basis.
- Total ARR was $1.83 billion, an increase of 21 percent compared to the second quarter last year as reported, and 23 percent on a constant currency basis.
- Subscription plan subscriptions increased 270,000 from the first quarter of fiscal 2018 to 1.59 million at the end of the second quarter. Subscription plan subscriptions benefited from 63,000 maintenance subscribers that converted to product subscription under the maintenance-to-subscription program.
- Total subscriptions increased 153,000 from the first quarter of fiscal 2018 to 3.44 million at the end of the second quarter.
- Deferred revenue increased 17 percent to $1.78 billion, compared to $1.52 billion in the second quarter last year. Unbilled deferred revenue at the end of the second quarter was $63 million.
- Revenue was $502 million, a decrease of 9 percent compared to the second quarter last year as reported, and 8 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 $609 million, a decrease of 1 percent compared to the second quarter last year.
- Total non-GAAP spend was $531 million, an increase of 1 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 $(0.66), compared to GAAP diluted net loss per share of $(0.44) in the second quarter last year.
- Non-GAAP diluted net loss per share was $(0.11), compared to non-GAAP diluted net income per share of $0.05 in the second quarter last year.
"Once again, we experienced broad-based strength across all subscription plan types and geographies," said Andrew Anagnost, Autodesk president and CEO. "We're seeing positive trends in ARR growth, especially with products that were first to move to subscription-only. These products are further into the transition and have ARR growth rates well above our current average, offering additional proof that our model transition is working. Subscription is delivering a better experience to our customers, expanding our market opportunities in construction and manufacturing, and increasing the customer lifetime value for Autodesk.
"During the second quarter we started offering a simple path for maintenance customers to move to subscription," continued Anagnost. "While the program didn't begin until midway through the quarter, it is off to a great start with nearly one-in-four renewal opportunities moving to subscription."
"Strong execution across the board and a steady macro operating environment led to another quarter of better than expected results," said Scott Herren, Autodesk CFO. "We've been able to achieve these results while diligently controlling costs. Overall, our first half results increase our confidence that the transition is working for our customers and partners. It also sets us up for success for the rest of the year and reinforces our conviction in our FY 20 targets."
