Autodesk, Inc. Announces Fiscal 2020 Second Quarter Results

- Record Last Twelve Months Operating and Free Cash Flow of $791 Million and $731 Million, Respectively

SAN RAFAEL, Calif., Aug. 27, 2019 — (PRNewswire) —   Autodesk, Inc. (NASDAQ: ADSK) today reported financial results for the second quarter of fiscal 2020.

(PRNewsfoto/Autodesk, Inc.)

All growth rates are compared to the second quarter of fiscal 2019 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.

  • Total ARR increased 31 percent to $3.07 billion;
  • Total billings increased 48 percent to $893 million;
  • Total revenue increased 30 percent to $797 million; recurring revenue represents 96 percent of total;
  • GAAP operating margin was 9 percent, up 13 percentage points;
  • Non-GAAP operating margin was 23 percent, up 14 percentage points;
  • GAAP diluted EPS was $0.18; Non-GAAP diluted EPS was $0.65;
  • Cash flow from operating activities was $219 million; free cash flow was $205 million.

"We closed a solid first half of the year with a very strong second quarter as revenue, billings, earnings, and free cash flow came in ahead of expectations," said Andrew Anagnost, Autodesk president and CEO. "ARR grew to a record $3.1 billion, driven by all parts of the business. Construction demonstrated continued strength with wins across all parts of the portfolio, and Fusion 360 - our design-to-manufacturing platform - continued to build momentum. We also made further strides in capturing opportunities within our non-paying user base. In an environment of increasing uncertainty, we believe we are well-positioned to achieve our FY23 goals."

"Our strong performance during the second quarter helped us achieve two milestones," said Scott Herren, Autodesk CFO. "First, we drove our largest quarterly non-GAAP net income to date, followed by a record setting last twelve months free cash flow of $731 million. While we continue to execute well and are not materially impacted by current trade tensions and macro uncertainty, we are taking a prudent stance to our second half fiscal 2020 outlook. Despite these near-term headwinds, our recurring revenue model is much more resilient than in prior cycles."

Second Quarter Fiscal 2020 Financial Highlights

  • Total ARR increased 31 percent to $3.07 billion as reported, and on a constant currency basis. Excluding fourth quarter acquisitions, total ARR increased 27 percent to $2.97 billion as reported, and 26 percent on a constant currency basis. On a sequential basis, total ARR increased 8 percent as reported, and 9 percent on a constant currency basis.
  • Subscription plan ARR increased 58 percent to $2.65 billion as reported, and 59 percent on a constant currency basis. Excluding fourth quarter acquisitions, subscription plan ARR increased 52 percent to $2.56 billion. On a sequential basis, subscription plan ARR increased 11 percent as reported, and 12 percent on a constant currency basis. Subscription plan ARR includes $566 million related to the maintenance-to-subscription (M2S) program.
  • Maintenance plan ARR decreased 38 percent to $414 million as reported, and 39 percent on a constant currency basis. On a sequential basis, maintenance plan ARR decreased 8 percent as reported, and on a constant currency basis.
  • Core ARR increased 26 percent to $2.86 billion. On a sequential basis, core ARR increased 8 percent.
  • Cloud ARR increased 175 percent to $207 million. Excluding fourth quarter acquisitions, cloud ARR increased 45 percent to $109 million. On a sequential basis, total cloud ARR increased 15 percent.
  • Net revenue retention rate was within the range of 110 to 120 percent.
  • Total revenue increased 30 percent to $797 million as reported, and on a constant currency basis. Excluding fourth quarter acquisitions, total revenue increased 26 percent to $772 million as reported, and 28 percent on a constant currency basis.
  • Total recurring revenue in the second quarter was 96 percent of total revenue, consistent with the second quarter last year.
  • GAAP operating income was $74 million compared to a loss of $25 million in the second quarter last year. GAAP operating margin was 9 percent, up 13 percentage points year-over-year.
  • Total non-GAAP operating income was $187 million compared to $56 million in the second quarter last year. Non-GAAP operating margin was 23 percent, up 14 percentage points year-over-year.
  • GAAP diluted net income per share was $0.18, compared to GAAP diluted net loss per share of $0.18 in the second quarter last year.
  • Non-GAAP diluted net income per share was $0.65, compared to non-GAAP diluted net income per share of $0.19 in the second quarter last year.
  • Total billings increased 48 percent to $893 million.
  • Deferred revenue increased 25 percent to $2.25 billion. Unbilled deferred revenue was $563 million, an increase of $157 million. Remaining performance obligations (RPO), or the sum of total billed and unbilled deferred revenue, totaled $2.81 billion, an increase of 28 percent. Current RPO totaled $2.01 billion, up 23 percent.
  • Cash flow from operating activities was $219 million, an increase of $176 million compared to the second quarter last year. Free cash flow was $205 million, an increase of $181 million compared to the second quarter last year.

Second Quarter Fiscal 2020 Business Highlights

Net Revenue by Geographic Area



Three Months
Ended July 31,
2019


Three Months
Ended July 31,
2018


Change compared to
prior fiscal year


Constant currency
change compared
to prior fiscal year


(In millions, except percentages)


$


%

%


Net Revenue:











Americas











U.S.

$

267.9



$

205.2



$

62.7



31

%



*

Other Americas

58.0



42.3



15.7



37

%



*

Total Americas

325.9



247.5



78.4



32

%


32

%

EMEA

316.2



248.3



67.9



27

%


26

%

APAC

154.7



115.9



38.8



33

%


35

%

Total Net Revenue

$

796.8



$

611.7



$

185.1



30

%


30

%











Emerging Economies

$

97.4



$

74.2



$

23.2



31

%


32

%

____________________

*        Constant currency data not provided at this level.


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