10-KPeriod: FY2020

Autodesk, Inc. Annual Report, Year Ended Jan 31, 2020

Filed March 19, 2020For Securities:ADSK

Summary

Autodesk, Inc. reported strong revenue growth of 27% in fiscal year 2020, reaching $3.27 billion, driven significantly by a 53% increase in subscription revenue. This growth underscores the successful transition away from perpetual licenses to a subscription-based business model, as evidenced by a 41% increase in Subscription Plan ARR. The company has also made strategic acquisitions in the construction technology space, including PlanGrid and BuildingConnected, to bolster its cloud-based construction platform. Autodesk demonstrates a commitment to innovation through continued investment in product development, particularly in the construction sector with its Construction Cloud platform. The company maintains a solid financial position, with robust cash flow from operations and a proactive approach to debt management, including the repayment of a significant portion of its debt in March 2020. While facing a dynamic market and competitive landscape, Autodesk appears well-positioned to leverage its subscription model and expand its offerings.

Financial Highlights

54 data points
Beta

Revenue

$3.27B

90.1% Gross Margin

Net Income

$214.50M

6.6% Net Margin

EPS (Diluted)

$0.96

Total Assets

$6.18B

Cash & Equivalents

$1.77B

Free Cash Flow

$1.36B

Financial Statements
Beta
Revenue$3.27B
Cost of Revenue$324.90M
Gross Profit$2.95B
R&D Expenses$851.10M
Operating Expenses$2.61B
Operating Income$343.00M
Net Income$214.50M
EPS (Basic)$0.98
EPS (Diluted)$0.96
Shares Outstanding (Basic)219.70M
Shares Outstanding (Diluted)222.50M

Key Highlights

  • 1Reported a 27% year-over-year increase in total net revenue, reaching $3.27 billion in fiscal year 2020.
  • 2Subscription revenue grew by 53%, demonstrating the successful shift to a subscription-based business model.
  • 3Subscription Plan ARR increased by 41% to $3.11 billion, highlighting strong recurring revenue growth.
  • 4Acquired key construction technology companies like PlanGrid and BuildingConnected to enhance its construction cloud platform.
  • 5Maintained strong operating cash flow, increasing to $1.415 billion.
  • 6Committed to ongoing investment in product development, especially in the construction technology sector with the Construction Cloud.
  • 7Successfully managed debt, including the full repayment of a $450 million senior note in March 2020.

Frequently Asked Questions

Autodesk reported a 27% increase in total net revenue for fiscal year 2020, reaching $3.27 billion. This growth was primarily driven by a 53% surge in subscription revenue, offsetting a 39% decrease in maintenance revenue as the company continued its transition to a subscription model.

Autodesk has strategically shifted its business model from selling perpetual licenses and maintenance plans to offering subscriptions. This transition is progressing well, as indicated by a 41% increase in Subscription Plan ARR to $3.11 billion. The company plans to retire its maintenance offerings by August 2021 and is incentivizing customers to move to subscription plans.

Autodesk's strategy focuses on three key priorities: delivering on the promise of subscription, digitizing the company, and reimagining construction, manufacturing, and production. This includes substantial investments in its construction solutions, such as the development of the Construction Cloud platform, and leveraging acquisitions to enhance its product offerings and market reach.

In fiscal year 2019, Autodesk made significant acquisitions in the construction technology sector, including PlanGrid and BuildingConnected, which contributed to revenue growth and strengthened its cloud-based construction platform. While acquisitions involve integration costs, they are a key part of Autodesk's strategy to expand its product portfolio and deliver comprehensive solutions to customers.