Industry Summary Articles

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

All growth rates are compared to the second 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.

Second Quarter Fiscal 2023 Financial Highlights

• Total revenue increased 17 percent to $1,237 million;
• GAAP operating margin was 20 percent, up 6 percentage points;
• Non-GAAP operating margin was 36 percent, up 5 percentage points;
• GAAP diluted EPS was $0.85; Non-GAAP diluted EPS was $1.65;
• Cash flow from operating activities was $257 million; free cash flow was $246 million.

"We are moving from products to platforms and capabilities, and bringing those capabilities to any device, anywhere, through the cloud," said Andrew Anagnost, Autodesk president and CEO. "By accelerating the convergence of workflows within and between the industries we serve, we are propelling the digital transformation of our customers and creating broader and deeper partnerships with them."

"Demand remained robust, our competitive performance strong, and subscription business resilient during the second quarter," said Debbie Clifford, Autodesk CFO. "With the underlying momentum of the business offsetting incremental foreign exchange headwinds, our guidance is unchanged at the mid-point across all metrics. We remain well on track to achieve our fiscal 23 goals."

Additional Financial Details

• Total billings increased 17 percent to $1,191 million.
• Total revenue was $1,237 million, an increase of 17 percent as reported and on a constant currency basis. Recurring revenue represents 98 percent of total.
• Design revenue was $1,064 million, an increase of 15 percent as reported and on a constant currency basis. On a sequential basis, Design revenue increased 6 percent as reported and on a constant currency basis.
• Make revenue was $113 million, an increase of 26 percent as reported, and 27 percent on a constant currency basis. On a sequential basis, Make revenue increased 10 percent as reported and on a constant currency basis.
• Subscription plan revenue was $1,160 million, an increase of 16 percent as reported and 17 percent on a constant currency basis. On a sequential basis, subscription plan revenue increased 7 percent 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 $242 million, compared to $148 million in the second quarter last year. GAAP operating margin was 20 percent, up 6 percentage points.
• Total non-GAAP operating income was $444 million, compared to $331 million in the second quarter last year. Non-GAAP operating margin was 36 percent, up 5 percentage points compared to the second quarter last year.
• GAAP diluted net income per share was $0.85, compared to $0.52 in the second quarter last year.
• Non-GAAP diluted net income per share was $1.65, compared to $1.21 in the second quarter last year.
• Deferred revenue increased 12 percent to $3.70 billion. Unbilled deferred revenue was $984 million, an increase of $141 million compared to the second quarter of last year. Remaining performance obligations ("RPO") increased 13 percent to $4.69 billion. Current RPO increased 10 percent to $3.14 billion.
• Cash flow from operating activities was $257 million, an increase of $55 million compared to the second quarter last year. Free cash flow was $246 million, an increase of $60 million compared to the second 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 third 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 third quarter and full-year fiscal 2023 outlook assume a projected annual effective tax rate of 21 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 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 view the original press release, please click here.

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