Industry Summary Articles

Autodesk, Inc. reported financial results for the first quarter of fiscal 2023.

All growth rates are compared to the first quarter of fiscal 2022, 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.

First Quarter Fiscal 2023 Financial Highlights

• Total revenue increased 18 percent to $1,170 million;
• GAAP operating margin was 18 percent, up 4 percentage points;
• Non-GAAP operating margin was up 6 percentage points to 34 percent;
• GAAP diluted EPS was $0.67; Non-GAAP diluted EPS was $1.43;
• Cash flow from operating activities was $434 million; free cash flow was $422 million.

"Autodesk’s strong Q1 results reflect the company’s steady execution, industry leading products and platforms, and resilience through elevated times of uncertainty," said Andrew Anagnost, Autodesk president and CEO. "Our unique ability to connect workflows within and between the industries we serve cements the important role we play in our customers’ digital transformation journeys, and increases our confidence in our strategy."

"Broad-based strength across products and regions, a strong competitive performance, and continued cost discipline delivered robust revenue growth, margin expansion, and free cash flow generation," said Debbie Clifford, Autodesk CFO. "We exited the first quarter with strong momentum, save for Russia and currency movements during the quarter, for which we’ve adjusted our outlook."

Additional Financial Details

• Total billings increased 16 percent to $1,129 million.
• Total revenue was $1,170 million, an increase of 18 percent as reported, and 17 percent on a constant currency basis. Recurring revenue represents 98 percent of total.
• Design revenue was $1,004 million, an increase of 16 percent as reported, and 15 percent on a constant currency basis. On a sequential basis, Design revenue decreased 1 percent as reported, and on a constant currency basis.
• Make revenue was $103 million, an increase of 27 percent as reported, and 26 percent on a constant currency basis. On a sequential basis, Make revenue increased 4 percent as reported and on a constant currency basis.
• Subscription plan revenue was $1,089 million, an increase of 17 percent as reported and on a constant currency basis. On a sequential basis, subscription plan revenue remained flat as reported and on a constant currency basis.
• Net revenue retention rate remained within the range of 100 to 110 percent.
• GAAP operating income was $214 million, compared to $134 million in the first quarter last year. GAAP operating margin was 18 percent, up 4 percentage points.
• Total non-GAAP operating income was $397 million, compared to $280 million in the first quarter last year. Non-GAAP operating margin was 34 percent, up 6 percentage points compared to the first quarter last year.
• GAAP diluted net income per share was $0.67, compared to $0.70 in the first quarter last year.
• Non-GAAP diluted net income per share was $1.43, compared to $1.03 in the first quarter last year.
• Deferred revenue increased 12 percent to $3.75 billion. Unbilled deferred revenue was $934 million, an increase of $45 million compared to the first quarter of last year. Remaining performance obligations ("RPO") increased 11 percent to $4.68 billion. Current RPO increased 10 percent to $3.14 billion.
• Cash flow from operating activities was $434 million, an increase of $98 million compared to the first quarter last year. Free cash flow was $422 million, an increase of $106 million compared to the first 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 second quarter and full-year fiscal 2023 takes into consideration the current economic environment and foreign exchange currency rate environment. A reconciliation between the fiscal 2023 GAAP and non-GAAP estimates is provided below or in the tables following this press release. 

The second quarter and full-year fiscal 2023 outlook assume a projected annual effective tax rate of 22 percent and 17 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 first 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 view the original press release, please click here.

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