Autodesk, Inc. reported financial results for the fourth quarter and full year of fiscal 2023.
All growth rates are compared to the fourth quarter and full year of fiscal 2022, respectively, 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.
Fourth Quarter Fiscal 2023 Financial Highlights
- Total revenue increased 9 percent to $1.32 billion;
- GAAP operating margin was 21 percent, up 9 percentage points;
- Non-GAAP operating margin was 36 percent, up 1 percentage point;
- GAAP diluted EPS was $1.35; Non-GAAP diluted EPS was $1.86;
- Cash flow from operating activities was $911 million; free cash flow was $903 million.
"As we deliver next-generation technology and services to our customers, the pace of transformation within and between the industries we serve will accelerate, generating large new growth opportunities for Autodesk," said Andrew Anagnost, Autodesk president and CEO. "We started seeing the shift towards connected digital workflows in the cloud in product design and manufacturing, then in architecture, followed by building engineering, and more recently construction. And we are now seeing growing momentum with owners."
"Overall, the demand environment in Q4 remained consistent with Q3 with the approaching transition from up-front to annual billings for multi-year contracts, and a large renewal cohort, providing a tailwind to billings and free cash flow," said Debbie Clifford, Autodesk CFO. "We continue to develop broader strategic partnerships with our customers, closing our largest deal to date during the quarter. Our strong momentum and competitive performance set us up well for fiscal 24."
Fourth Quarter Fiscal 2023 Additional Financial Details
- Total billings increased 28 percent to $2.12 billion.
- Total revenue was $1.32 billion, an increase of 9 percent as reported, and 12 percent on a constant currency basis. Recurring revenue represents 98 percent of total.
- Design revenue was $1.11 billion, an increase of 9 percent as reported, and 12 percent on a constant currency basis. On a sequential basis, Design revenue increased 2 percent as reported and on a constant currency basis.
- Make revenue was $119 million, an increase of 20 percent as reported, and 21 percent on a constant currency basis. On a sequential basis, Make revenue increased 2 percent as reported and on a constant currency basis.
- Subscription plan revenue was $1.21 billion, an increase of 11 percent as reported, and 14 percent on a constant currency basis. On a sequential basis, subscription plan revenue increased 2 percent as reported and on a constant currency basis.
- Net revenue retention rate was within the range of 100 to 110 percent.
- GAAP operating income was $277 million, compared to $143 million in the fourth quarter last year. GAAP operating margin was 21 percent, up 9 percentage points.
- Total non-GAAP operating income was $479 million, compared to $421 million in the fourth quarter last year. Non-GAAP operating margin was 36 percent, up 1 percentage point.
- GAAP diluted net income per share was $1.35, compared to $0.40 in the fourth quarter last year.
- Non-GAAP diluted net income per share was $1.86, compared to $1.50 in the fourth quarter last year.
- Deferred revenue increased 21 percent to $4.58 billion. Unbilled deferred revenue was $1.04 billion, an increase of $94 million compared to the fourth quarter of last year. Remaining performance obligations (RPO) increased 19 percent to $5.62 billion. Current RPO increased 12 percent to $3.52 billion.
- Cash flow from operating activities was $911 million, an increase of $189 million compared to the fourth quarter last year. Free cash flow was $903 million, an increase of $187 million compared to the fourth quarter last year.
Fiscal 2023 Financial Highlights
- Total billings increased 20 percent to $5.80 billion.
- Total revenue was $5.01 billion, an increase of 14 percent as reported, and 15 percent on a constant currency basis. Recurring revenue represents 98 percent of total.
- Design revenue was $4.26 billion, an increase of 13 percent as reported, and 14 percent on a constant currency basis.
- Make revenue was $452 million, an increase of 24 percent as reported, and 25 percent on a constant currency basis.
- Subscription plan revenue was $4.65 billion, an increase of 15 percent as reported and on a constant currency basis.
- Total subscriptions increased approximately 702 thousand from fiscal 2022 to 6.74 million at the end of fiscal 2023. Total subscriptions adjusted for the multi-user trade-in increased approximately 603 thousand from fiscal 2022 to 6.25 million.
- Subscription plan subscriptions increased 724 thousand from the end of fiscal 2022 to 6.74 million at the end of fiscal 2023.
- GAAP operating income was $989 million, compared to $618 million last year. GAAP operating margin was 20 percent, up 6 percentage points.
- Total non-GAAP operating income was $1.79 billion compared to $1.40 billion last year. Non-GAAP operating margin was 36 percent, up 4 percentage points.
- GAAP diluted net income per share was $3.78, compared to $2.24 last year.
- Non-GAAP diluted net income per share was $6.63, compared to $5.07 last year.
- Cash flow from operating activities increased to $2.07 billion, compared to $1.53 billion in fiscal 2022. Free cash flow increased to $2.03 billion, compared to $1.48 billion in fiscal 2022.
Earnings Conference Call and Webcast
Autodesk will host its fourth 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.
