01—Abstract
Summary
Summary of the 10-K filed March 19, 2021. Cited figures are marked; the original filing is the authoritative source.
Autodesk, Inc.'s 10-K filing for the fiscal year ended January 31, 2021, highlights a strong performance with a 16% increase in net revenue, reaching $3.79 billiona.
This growth was primarily driven by a substantial 26% surge in subscription revenue, indicating the company's successful transition to a subscription-based business model. The company continues to expand its product offerings and market reach through strategic acquisitions, such as Spacemaker AS, to enhance its capabilities in AI and generative design. Key financial metrics show robust health, with recurring revenue at 97% of total revenue and remaining performance obligations (RPO) increasing by 19% to $4.24 billionb.
This signals strong future revenue potential. The company also demonstrated a commitment to returning value to shareholders through significant stock repurchases. Despite global economic uncertainties and the ongoing impact of the COVID-19 pandemic, Autodesk maintained effective internal controls and reported positive operational income, signaling resilience and strategic execution.
02—Key points
Key Highlights
- Net revenue increased by 16% year-over-year to $3.79 billion, driven by a 26% increase in subscription revenue.
- Recurring revenue represented 97% of total net revenue, underscoring the success of the subscription model.
- Remaining Performance Obligations (RPO) grew by 19% to $4.24 billion, indicating strong future revenue visibility.
- The company made strategic acquisitions, including Spacemaker AS, to enhance its AI and generative design capabilities.
- Autodesk repurchased $549.4 million of its common stock in fiscal year 2021, demonstrating a commitment to shareholder returns.
- Cash flow from operations remained strong at $1.44 billion.
- The company successfully managed through the COVID-19 pandemic, with most regions experiencing usage levels above pre-pandemic levels.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, Autodesk kept $0.32.
- Revenue$3.79B100.0%
- Cost of revenue−$337.0M8.9%
- Gross profit$3.45B91.1%
- Operating costs−$2.82B74.5%
- Operating income$629.0M16.6%
- Interest, other & tax$579.0M15.3%
- Net income$1.21B31.9%
Where FY2021 revenue went
$3.79B- Other operating costs: $1.89B, 50% of revenue
- R&D: $932.0M, 25% of revenue
- Operating income: $629.0M, 17% of revenue
- Cost of revenue: $337.0M, 8.9% of revenue
Kept 17% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed March 19, 2021Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $3.79B$3.27B | +15.7% |
| Cost of Revenue | $337.00M$324.90M | +3.7% |
| Gross Profit | $3.45B$2.95B | +17.1% |
| R&D Expenses | $932.00M$851.10M | +9.5% |
| Operating Expenses | $2.82B$2.61B | +8.3% |
| Operating Income | $629.00M$343.00M | +83.4% |
| Net Income | $1.21B$214.50M | +463.2% |
| EPS (Basic) | $5.52$0.98 | +463.3% |
| EPS (Diluted) | $5.44$0.96 | +466.7% |
| Shares Outstanding (Basic) | 219.00M219.70M | −0.3% |
| Shares Outstanding (Diluted) | 222.00M222.50M | −0.2% |
05—Questions
Frequently Asked Questions
What is Autodesk's primary business and strategy?
Autodesk is a global leader in 3D design, engineering, and entertainment software and services. Its strategy focuses on building enduring customer relationships by delivering innovative technology, digitizing the company, and reimagining construction, manufacturing, and production through its subscription-based model.
How did Autodesk perform financially in the fiscal year ended January 31, 2021?
Autodesk reported a 16% increase in net revenue to $3.79 billion, primarily driven by a 26% increase in subscription revenue. Operating income was $629.1 million, and net income was $1.21 billion, significantly boosted by a tax benefit related to the release of a U.S. valuation allowance. Cash flow from operations was strong at $1.44 billion.
What is the significance of the transition to a subscription model?
The transition to a subscription model, which includes product subscriptions, cloud service offerings, and Enterprise Business Agreements (EBAs), is a core part of Autodesk's strategy. It provides customers with greater flexibility, attracts a broader customer base, and creates more predictable, recurring revenue, as evidenced by recurring revenue reaching 97% of total net revenue in fiscal year 2021.
How does Autodesk manage its international operations and related risks?
Autodesk derives a significant portion of its revenue internationally (66% in fiscal 2021). The company is exposed to various risks including economic volatility, fluctuating currency exchange rates, regulatory changes, and political instability in different regions. Autodesk manages these risks through hedging activities and by closely monitoring global economic and political conditions, though it acknowledges that these factors can still adversely impact its financial results.
06—Continue