Autodesk, Inc. reported financial results for the third quarter of fiscal 2024.
All growth rates are compared to the third 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.
Third Quarter Fiscal 2024 Financial Highlights
- Total revenue increased 10 percent to $1,414 million;
- GAAP operating margin was 24 percent, up 4 percentage points;
- Non-GAAP operating margin was 39 percent, up 3 percentage points;
- GAAP diluted EPS was $1.12; Non-GAAP diluted EPS was $2.07;
- Cash flow from operating activities was $18 million; free cash flow was $13 million.
"Autodesk AI and Platform Services will enable Autodesk, our customers, and partners to build more valuable, data driven, and connected products and services in our industry clouds and on our platform," said Andrew Anagnost, Autodesk president and CEO. "Our customers remain committed to transformation, and to Autodesk, evidenced by our largest-ever EBA signed during the quarter, and record contributions from our construction and water verticals to our overall EBA performance."
"Overall market conditions and the underlying momentum of the business remained similar to the last few quarters. Our financial performance in the third quarter was strong with much of the outperformance coming from larger-than-expected expansions of existing EBAs," said Debbie Clifford, CFO of Autodesk. "Given that, we are raising revenue, earnings per share, and free cash flow guidance."
Additional Financial Details
- Total billings decreased 11 percent to $1,204 million.
- Total revenue was $1,414 million, an increase of 10 percent as reported, and 13 percent on a constant currency basis. Recurring revenue represents 98 percent of total.
- Design revenue was $1,192 million, an increase of 10 percent as reported, and 12 percent on a constant currency basis. On a sequential basis, Design revenue increased 3 percent as reported, and 4 percent on a constant currency basis.
- Make revenue was $134 million, an increase of 15 percent as reported, and 16 percent on a constant currency basis. On a sequential basis, Make revenue increased 3 percent as reported and on a constant currency basis.
- Subscription plan revenue was $1,314 million, an increase of 11 percent as reported, and 13 percent on a constant currency basis. On a sequential basis, subscription plan revenue increased 3 percent as reported, and 4 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 $334 million, compared to $256 million in the third quarter last year. GAAP operating margin was 24 percent, up 4 percentage points compared to the third quarter last year.
- Total non-GAAP operating income was $547 million, compared to $465 million in the third quarter last year. Non-GAAP operating margin was 39 percent, up 3 percentage points compared to the third quarter last year.
- GAAP diluted net income per share was $1.12, compared to $0.91 in the third quarter last year.
- Non-GAAP diluted net income per share was $2.07, compared to $1.70 in the third quarter last year.
- Deferred revenue increased 6 percent to $4.02 billion. Unbilled deferred revenue was $1.22 billion, an increase of $322 million compared to the third quarter last year. Remaining performance obligations ("RPO") increased 12 percent to $5.24 billion. Current RPO increased 12 percent to $3.52 billion.
- Cash flow from operating activities was $18 million, a decrease of $451 million compared to the third quarter last year. Free cash flow was $13 million, a decrease of $447 million compared to the third quarter last year.
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 prior fiscal year |
||
|
(In millions, except percentages) |
$ |
% |
||
|
AEC |
$ 675 |
$ 575 |
$ 100 |
17 % |
|
AutoCAD and AutoCAD LT |
372 |
354 |
18 |
5 % |
|
MFG |
269 |
254 |
15 |
6 % |
|
M&E |
73 |
78 |
(5) |
(6) % |
|
Other |
25 |
19 |
6 |
32 % |
|
Total Net Revenue |
$ 1,414 |
$ 1,280 |
$ 134 |
10 % |
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 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.
Fourth Quarter Fiscal 2024
|
Q4 FY24 Guidance Metrics |
Q4 FY24 |
|
Revenue (in millions) |
$1,422 – $1,437 |
|
EPS GAAP |
$0.99 – $1.05 |
|
EPS non-GAAP (1) |
$1.91 – $1.97 |
|
____________________ |
|
(1) Non-GAAP earnings per diluted share excludes $0.75 related to stock-based compensation expense, $0.11 for the amortization of both purchased intangibles and developed technologies, $0.06 for acquisition-related costs. |
Full Year Fiscal 2024
|
FY24 Guidance Metrics |
FY24 |
|
Billings (in millions) (1) |
$5,075 – $5,175 |
|
Revenue (in millions) (2) |
$5,450 – $5,465 |
|
GAAP operating margin |
Approx. flat year over year |
|
Non-GAAP operating margin (3) |
Approx. flat year over year |
|
EPS GAAP |
$3.88 – $3.94 |
|
EPS non-GAAP (4) |
$7.43 – $7.49 |
|
Free cash flow (in millions) (5) |
$1,200 – $1,260 |
|
____________________ |
|
(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. 12%. |
|
(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 and other charges. |
|
(4) Non-GAAP earnings per diluted share excludes $3.27 related to stock-based compensation expense, $0.39 for the amortization of both purchased intangibles and developed technologies, $0.12 related to losses on strategic investments, $0.13 related to acquisition-related costs, and $0.03 for lease-related asset impairments and other charges, partially offset by ($0.39) related to GAAP-only tax charges. |
|
(5) Free cash flow is cash flow from operating activities less approximately $30 million of capital expenditures. |
The fourth quarter and full-year fiscal 2024 outlook assume a projected annual effective tax rate of 24 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 third 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.
