Autodesk, Inc. reported financial results for the second quarter of fiscal 2022.
All growth rates are compared to the second quarter of fiscal 2021, 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 2022 Financial Highlights
- Total revenue increased 16 percent to $1,060 million;
- GAAP operating margin was 14 percent, down 2 percentage points;
- Non-GAAP operating margin was up 2 percentage points to 31 percent;
- GAAP diluted EPS was $0.52; Non-GAAP diluted EPS was $1.21;
- Cash flow from operating activities was $202 million; free cash flow was $186 million.
"Sustained and purposeful innovation to enable digital transformation in the industries we serve is changing our relationship with our customers from software vendor to strategic partner," said Andrew Anagnost, Autodesk president and CEO. "And that is enabling us to create more value through end-to-end, cloud-based solutions that connect data and workflows, and power business model evolution. By helping our customers grow, we will grow too, giving us confidence in our FY 23 goals and beyond."
"Robust growth in new product subscriptions, accelerating digital sales, and improving subscription renewal rates drove our strong second quarter results," said Debbie Clifford, Autodesk CFO. "Our strong start to the year means we are raising our FY22 revenue and margin guidance and shifting more of our EBA customers from multi-year paid up front to annual billings, benefiting both our customers and Autodesk."
Additional Financial Details
- Total billings increased 29 percent to $1,015 million.
- Total revenue was $1,060 million, an increase of 16 percent as reported, and 14 percent on a constant currency basis. Recurring revenue represents 98 percent of total.
- Design revenue was $944 million, an increase of 15 percent as reported, and 13 percent on a constant currency basis. On a sequential basis, Design revenue increased 7 percent as reported, and 6 percent on a constant currency basis.
- Make revenue was $90 million, an increase of 26 percent as reported, and 25 percent on a constant currency basis. On a sequential basis, Make revenue increased 10 percent as reported, and 9 percent on a constant currency basis.
- Subscription plan revenue was $1,017 million, an increase of 21 percent as reported, and 19 percent on a constant currency basis. On a sequential basis, subscription plan revenue increased 7 percent as reported and on a constant currency basis.
- Maintenance plan revenue was $17 million, a decrease of 67 percent as reported and on a constant currency basis. On a sequential basis, maintenance plan revenue decreased 12 percent as reported, and 13 percent on a constant currency basis.
- Net revenue retention rate was within the range of 100 to 110 percent.
- GAAP operating income was $148 million, compared to $146 million in the second quarter last year. GAAP operating margin was 14 percent, down 2 percentage points.
- Total non-GAAP operating income was $331 million, compared to $262 million in the second quarter last year. Non-GAAP operating margin was 31 percent, up 2 percentage points compared to the second quarter last year.
- GAAP diluted net income per share was $0.52, compared to $0.44 in the second quarter last year.
- Non-GAAP diluted net income per share was $1.21, compared to $0.98 in the second quarter last year.
- Deferred revenue increased 15 percent to $3.30 billion. Unbilled deferred revenue was $843 million, an increase of $375 million compared to the second quarter of last year. Remaining performance obligations (RPO) increased 24 percent to $4.14 billion. Current RPO increased 24 percent to $2.85 billion.
- Cash flow from operating activities was $202 million, an increase of $111 million compared to the second quarter last year. Free cash flow was $186 million, an increase of $122 million compared to the second quarter last year.
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Second Quarter Fiscal 2022 Business Highlights |
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Net Revenue by Geographic Area |
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|
Three Months Ended July 31, 2021 |
Three Months Ended July 31, 2020 |
Change compared to prior fiscal year |
Constant currency change compared to prior fiscal year |
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|
(In millions, except percentages) |
$ |
% |
% |
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|
Net Revenue: |
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|
Americas |
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|
U.S. |
$ |
347.3 |
$ |
309.5 |
$ |
37.8 |
12 |
% |
* |
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|
Other Americas |
75.5 |
62.0 |
13.5 |
22 |
% |
* |
|||||||||||
|
Total Americas |
422.8 |
371.5 |
51.3 |
14 |
% |
14 |
% |
||||||||||
|
EMEA |
410.2 |
354.7 |
55.5 |
16 |
% |
12 |
% |
||||||||||
|
APAC |
226.7 |
186.9 |
39.8 |
21 |
% |
18 |
% |
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|
Total Net Revenue |
$ |
1,059.7 |
$ |
913.1 |
$ |
146.6 |
16 |
% |
14 |
% |
|||||||
|
Emerging Economies |
$ |
132.8 |
$ |
113.7 |
$ |
19.1 |
17 |
% |
16 |
% |
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|
__________ |
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* Constant currency data not provided at this level. |
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Net Revenue by Product Family |
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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 July 31, 2021 |
Three Months Ended July 31, 2020 |
Change compared to prior fiscal year |
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|
(In millions, except percentages) |
$ |
% |
||||||||||||
|
AEC |
$ |
478.7 |
$ |
397.0 |
$ |
81.7 |
21 |
% |
||||||
|
AutoCAD and AutoCAD LT |
304.4 |
271.9 |
32.5 |
12 |
% |
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|
MFG |
207.7 |
185.5 |
22.2 |
12 |
% |
|||||||||
|
M&E |
58.5 |
53.3 |
5.2 |
10 |
% |
|||||||||
|
Other |
10.4 |
5.4 |
5.0 |
93 |
% |
|||||||||
|
$ |
1,059.7 |
$ |
913.1 |
$ |
146.6 |
16 |
% |
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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 2022 takes into consideration the current economic environment and foreign exchange currency rate environment. A reconciliation between the fiscal 2022 GAAP and non-GAAP estimates is provided below or in the tables following this press release.
Third Quarter Fiscal 2022
|
Q3 FY22 Guidance Metrics |
Q3 FY22 (ending October 31, 2021) |
|
Revenue (in millions) |
$1,110 – $1,125 |
|
EPS GAAP |
$0.50 – $0.56 |
|
EPS non-GAAP (1) |
$1.22 – $1.28 |
|
(1) |
Non-GAAP earnings per diluted share excludes $0.64 related to stock-based compensation expense, $0.10 for the amortization of purchased intangibles, $0.02 for acquisition-related costs, partially offset by ($0.04) related to GAAP-only tax benefit. |
Full Year Fiscal 2022
|
FY22 Guidance Metrics |
FY22 (ending January 31, 2022) |
|
Billings (in millions) (1) |
$4,875 – $4,975 Up 18% – 20% |
|
Revenue (in millions) (2) |
$4,345 – $4,385 Up 15% – 16% |
|
GAAP operating margin |
Approx. 15% |
|
Non-GAAP operating margin (3) |
Approx. 31% |
|
EPS GAAP |
$2.43 – $2.58 |
|
EPS non-GAAP (4) |
$4.91 – $5.06 |
|
Free cash flow (in millions) (5) |
$1,500 – $1,575 |
|
_______________ |
|
|
(1) |
Excluding the approximately $50 million impact of foreign currency exchange rates and hedge gains/losses, billings guidance would be $4,825 – $4,925 million. |
|
(2) |
Excluding the approximately $55 million impact of foreign currency exchange rates and hedge gains/losses, revenue guidance would be $4,290 – $4,330 million. |
|
(3) |
Non-GAAP operating margin excludes approximately 13% related to stock-based compensation expense, approximately 2% for the amortization of purchased intangibles, and 1% related to acquisition-related costs. |
|
(4) |
Non-GAAP earnings per diluted share excludes $2.49 related to stock-based compensation expense, $0.40 for the amortization of purchased intangibles, $0.10 related to acquisition-related costs, partially offset by ($0.03) related to gains on strategic investments and dispositions, and ($0.48) related to a GAAP-only tax benefit. |
|
(5) |
Free cash flow is cash flow from operating activities less approximately $75 million of capital expenditures. |
The third quarter and full-year fiscal 2022 outlook assume a projected annual effective tax rate of 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, excel financials and other supplemental materials 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.
