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Autodesk, Inc. reported financial results for the third quarter of fiscal 2022.

All growth rates are compared to the third 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.

Third Quarter Fiscal 2022 Financial Highlights

• Total revenue increased 18 percent to $1,126 million;
• GAAP operating margin was 17 percent, down 1 percentage point;
• Non-GAAP operating margin was up 2 percentage points to 32 percent;
• GAAP diluted EPS was $0.61; Non-GAAP diluted EPS was $1.33;
• Cash flow from operating activities was $270 million; free cash flow was $257 million.

"Our customers continue to embrace and prioritize digital transformation to drive growth, efficiency and  sustainability, generating strong demand for Autodesk’s platform," said Andrew Anagnost, Autodesk president and CEO. "We are rapidly innovating and optimizing our business to enable more customers to experience our ecosystem, and realize the opportunities ahead."

"Demand was robust in Q3, driving strong new subscriptions growth and renewal rates. We expect it to remain so in Q4," said Debbie Clifford, Autodesk CFO. "However, supply chain disruption and resulting inflationary pressures, a global labor shortage, and the ebb and flow of COVID, are impacting the pace of our recovery and outlook."

Additional Financial Details

• Total billings increased 16 percent to $1,168 million.
• Total revenue was $1,126 million, an increase of 18 percent as reported, and 17 percent on a constant currency basis. Recurring revenue represents 97 percent of total.
• Design revenue was $994 million, an increase of 17 percent as reported, and 15 percent on a constant currency basis. On a sequential basis, Design revenue increased 5 percent as reported and on a constant currency basis.
• Make revenue was $94 million, an increase of 23 percent as reported and on a constant currency basis. On a sequential basis, Make revenue increased 5 percent as reported and on a constant currency basis.
• Subscription plan revenue was $1,071 million, an increase of 21 percent as reported, and 19 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 $18 million, a decrease of 56 percent as reported and on a constant currency basis. On a sequential basis, maintenance plan revenue increased 4 percent as reported, and 1 percent on a constant currency basis.
• Net revenue retention rate remained within the range of 100 to 110 percent.
• GAAP operating income was $193 million, compared to $168 million in the third quarter last year. GAAP operating margin was 17 percent, down 1 percentage point.
• Total non-GAAP operating income was $365 million, compared to $287 million in the third quarter last year. Non-GAAP operating margin was 32 percent, up 2 percentage points compared to the third quarter last year.
• GAAP diluted net income per share was $0.61, compared to $0.59 in the third quarter last year.
• Non-GAAP diluted net income per share was $1.33, compared to $1.04 in the third quarter last year.
• Deferred revenue increased 14 percent to $3.34 billion. Unbilled deferred revenue was $888 million, an increase of $239 million compared to the third quarter of last year. Remaining performance obligations (RPO) increased 18 percent to $4.23 billion. Current RPO increased 21 percent to $2.88 billion.
• Cash flow from operating activities was $270 million, a decrease of $91 million compared to the third quarter last year. Free cash flow was $257 million, a decrease of $83 million compared to the third 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 fourth quarter and full-year fiscal 2022 takes into consideration the current economic environment and foreign exchange currency rate environment. A reconciliation between the fourth quarter and fiscal 2022 GAAP and non-GAAP estimates is provided below or in the tables following this press release.

The fourth 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.

To view the original press release, please click here.

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