Autodesk, Inc. reported financial results for the second quarter of fiscal 2024.
All growth rates are compared to the second quarter of fiscal 2023, 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 2024 Financial Highlights
- Total revenue increased 9 percent to $1,345 million;
- GAAP operating margin was 19 percent, down 1 percentage point;
- Non-GAAP operating margin was flat at 36 percent;
- GAAP diluted EPS was $1.03; Non-GAAP diluted EPS was $1.91;
- Cash flow from operating activities was $135 million; free cash flow was $128 million.
"Augmented design, powered by Autodesk, will enable our customers to go further and faster to design and make a better world for all," said Andrew Anagnost, Autodesk president and CEO. "We’ve been laying the foundation to build enterprise-level AI for years. We are building the future with focus, purpose, and optimism."
"Our sustained momentum in the second quarter, and early expansion of some enterprise business agreements expected to renew later in the year, reduce the likelihood of our more cautious forecast scenarios," said Debbie Clifford, CFO of Autodesk. "Given that, we are raising the lower end of our guidance ranges."
Additional Financial Details
- Total billings decreased 8 percent to $1,095 million.
- Total revenue was $1,345 million, 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 $1,154 million, an increase of 8 percent as reported, and 12 percent on a constant currency basis. On a sequential basis, Design revenue increased 6 percent as reported, and 7 percent on a constant currency basis.
- Make revenue was $130 million, an increase of 15 percent as reported, and 17 percent on a constant currency basis. On a sequential basis, Make revenue increased 7 percent as reported, and 8 percent on a constant currency basis.
- Subscription plan revenue was $1,270 million, an increase of 9 percent as reported, and 13 percent on a constant currency basis. On a sequential basis, subscription plan revenue increased 6 percent as reported, and 7 percent on a constant currency basis.
- Net revenue retention rate remained within the range of 100 to 110 percent, on a constant currency basis.
- GAAP operating income was $262 million, compared to $242 million in the second quarter last year. GAAP operating margin was 19 percent, down 1 percentage point compared to the second quarter last year.
- Total non-GAAP operating income was $489 million, compared to $444 million in the second quarter last year. Non-GAAP operating margin was 36 percent, flat compared to the second quarter last year.
- GAAP diluted net income per share was $1.03, compared to $0.85 in the second quarter last year.
- Non-GAAP diluted net income per share was $1.91, compared to $1.65 in the second quarter last year.
- Deferred revenue increased 14 percent to $4.23 billion. Unbilled deferred revenue was $991 million, an increase of $7 million compared to the second quarter of last year. Remaining performance obligations ("RPO") increased 11 percent to $5.22 billion. Current RPO increased 12 percent to $3.51 billion.
- Cash flow from operating activities was $135 million, a decrease of $122 million compared to the second quarter last year. Free cash flow was $128 million, a decrease of $118 million compared to the second quarter last year.
Second Quarter Fiscal 2024 Business Highlights
Net Revenue by Geographic Area
|
Three Months |
Three Months |
Change |
Constant currency |
||
|
(In millions, except percentages) |
$ |
% |
% |
||
|
Net Revenue: |
|||||
|
Americas |
|||||
|
U.S. |
$ 485 |
$ 424 |
$ 61 |
14 % |
* |
|
Other Americas |
104 |
91 |
13 |
14 % |
* |
|
Total Americas |
589 |
515 |
74 |
14 % |
15 % |
|
EMEA |
506 |
473 |
33 |
7 % |
11 % |
|
APAC |
250 |
249 |
1 |
— % |
6 % |
|
Total Net Revenue |
$ 1,345 |
$ 1,237 |
$ 108 |
9 % |
12 % |
|
____________________ |
|
* Constant currency data not provided at this level. |
Net Revenue by Product Family
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 |
Three Months |
Change compared to |
||
|
(In millions, except percentages) |
$ |
% |
||
|
AEC |
$ 627 |
$ 564 |
$ 63 |
11 % |
|
AutoCAD and AutoCAD LT |
364 |
344 |
20 |
6 % |
|
MFG |
256 |
242 |
14 |
6 % |
|
M&E |
74 |
71 |
3 |
4 % |
|
Other |
24 |
16 |
8 |
50 % |
|
Total Net Revenue |
$ 1,345 |
$ 1,237 |
$ 108 |
9 % |
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 2024 considers the current economic environment and foreign exchange currency rate environment. A reconciliation between the fiscal 2024 GAAP and non-GAAP estimates is provided below or in the tables following this press release.
Third Quarter Fiscal 2024
|
Q3 FY24 Guidance Metrics |
Q3 FY24 |
|
Revenue (in millions) |
$1,380 – $1,395 |
|
EPS GAAP |
$1.02 – $1.08 |
|
EPS non-GAAP (1) |
$1.97 – $2.03 |
|
____________________ |
|
(1) Non-GAAP earnings per diluted share excludes $0.85 related to stock-based compensation expense, $0.10 for the amortization of both purchased intangibles and developed technologies, and $0.01 for acquisition-related costs, partially offset by ($0.01) related to GAAP-only tax charges. |
Full Year Fiscal 2024
|
FY24 Guidance Metrics |
FY24 |
|
Billings (in millions) (1) |
$5,075 – $5,175 |
|
Revenue (in millions) (2) |
$5,405 – $5,455 |
|
GAAP operating margin |
Approx. flat year over year |
|
Non-GAAP operating margin (3) |
Approx. flat year over year |
|
EPS GAAP |
$3.75 – $3.94 |
|
EPS non-GAAP (4) |
$7.30 – $7.49 |
|
Free cash flow (in millions) (5) |
$1,170 – $1,250 |
|
____________________ |
|
(1) Excluding the impact of foreign currency exchange rates and hedge gains/losses, billings guidance would be down approx. 11% – 9%. |
|
(2) Excluding the impact of foreign currency exchange rates and hedge gains/losses, revenue guidance would be up approx. 11% – 12%+ (impacted by rounding). |
|
(3) Non-GAAP operating margin excludes approximately 13% related to stock-based compensation expense, approximately 2% for the amortization of both purchased intangibles and developed technologies, less than 1% related to acquisition-related costs and less than 1% related to lease-related asset impairments. |
|
(4) Non-GAAP earnings per diluted share excludes $3.34 related to stock-based compensation expense, $0.39 for the amortization of both purchased intangibles and developed technologies, $0.07 related to losses on strategic investments and dispositions, net, $0.04 related to acquisition-related costs, and $0.03 for lease-related asset impairments, partially offset by ($0.32) related to GAAP-only tax charges. |
|
(5) Free cash flow is cash flow from operating activities less approximately $30 million of capital expenditures. |
The third quarter and full-year fiscal 2024 outlook assume a projected annual effective tax rate of 25 percent and 18 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.
