Autodesk, Inc. 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.
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