01—Abstract
Summary
Summary of the 10-K filed March 14, 2023. Cited figures are marked; the original filing is the authoritative source.
Autodesk, Inc.'s 10-K filing for the fiscal year ended January 31, 2023, highlights a robust year characterized by continued revenue growth and a strong transition to a subscription-based business model.
The company reported a 14% increase in total net revenue, reaching $5.01 billiona, driven primarily by a 15% rise in subscription revenue. Recurring revenue represented a significant 98% of total net revenue, underscoring the company's successful shift to a predictable revenue stream. Key financial metrics such as deferred revenue and remaining performance obligations (RPO) showed healthy increases, up 21% and 19% respectively, indicating strong future revenue visibility.
Autodesk also demonstrated solid cash flow generation, with operating cash flow increasing to $2.07 billionb. The company continued its commitment to returning capital to shareholders through share repurchases totaling $1.08 billion and maintained a strong liquidity position with $2.17 billion in cash, cash equivalents, and marketable securities. Despite macroeconomic uncertainties and geopolitical risks, Autodesk's strategic focus on customer experience, digital transformation, and platform leadership positions it well for sustained growth.
02—Key points
Key Highlights
- Total net revenue increased by 14% year-over-year to $5.01 billion, primarily driven by subscription revenue growth.
- Recurring revenue accounted for 98% of total net revenue, showcasing the strength of the subscription model.
- Deferred revenue and Remaining Performance Obligations (RPO) grew by 21% and 19% respectively, indicating strong future revenue visibility.
- Operating cash flow increased significantly to $2.07 billion, demonstrating strong operational cash generation.
- The company repurchased $1.08 billion of its common stock, returning capital to shareholders.
- Autodesk maintained a strong liquidity position with $2.17 billion in cash, cash equivalents, and marketable securities as of fiscal year-end.
- The company is successfully transitioning its business model, with a focus on cloud-enabled technologies and subscription offerings across its key segments: AEC, Manufacturing, and Media & Entertainment.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Autodesk kept $0.16.
- Revenue$5.00B100.0%
- Cost of revenue−$480.0M9.6%
- Gross profit$4.53B90.4%
- Operating costs−$3.54B70.6%
- Operating income$989.0M19.8%
- Interest, other & tax−$166.0M3.3%
- Net income$823.0M16.4%
Where FY2023 revenue went
$5.00B- Other operating costs: $2.32B, 46% of revenue
- R&D: $1.22B, 24% of revenue
- Net income: $823.0M, 16% of revenue
- Cost of revenue: $480.0M, 9.6% of revenue
- Interest, other & tax: $166.0M, 3.3% of revenue
Kept 16% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed March 14, 2023Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $5.00B$4.39B | +14.1% |
| Cost of Revenue | $480.00M$418.00M | +14.8% |
| Gross Profit | $4.53B$3.97B | +14.0% |
| R&D Expenses | $1.22B$1.11B | +9.3% |
| Operating Expenses | $3.54B$3.35B | +5.6% |
| Operating Income | $989.00M$618.00M | +60.0% |
| Interest Expense | $83.00M— | — |
| Net Income | $823.00M$497.00M | +65.6% |
| EPS (Basic) | $3.81$2.26 | +68.6% |
| EPS (Diluted) | $3.78$2.24 | +68.7% |
| Shares Outstanding (Basic) | 216.00M220.00M | −1.8% |
| Shares Outstanding (Diluted) | 218.00M222.00M | −1.8% |
05—Questions
Frequently Asked Questions
What is Autodesk's primary revenue driver and how has it evolved?
Autodesk's primary revenue driver is its subscription business. The company has successfully transitioned from a perpetual license model to a subscription-based model, which now accounts for 98% of its total net revenue. This shift provides more predictable recurring revenue and allows customers greater flexibility.
How did Autodesk perform financially in the fiscal year ended January 31, 2023?
Autodesk reported a 14% increase in total net revenue to $5.01 billion. Subscription revenue grew by 15%. The company also saw increases in deferred revenue (21%) and remaining performance obligations (19%), indicating strong future revenue. Operating cash flow also saw a significant increase to $2.07 billion.
What is Autodesk's strategy regarding acquisitions and product development?
Autodesk continues to pursue a strategy of strengthening its core offerings and expanding into adjacent markets through both internal development and strategic acquisitions. In fiscal 2023, acquisitions focused on enhancing its cloud-connected capabilities, particularly in the AEC sector, and optimizing manufacturing processes. The company emphasizes innovation, investing in AI, machine learning, and generative design to provide enhanced automation and insights for its customers.
What is Autodesk's approach to returning capital to shareholders?
Autodesk actively returns capital to shareholders through its share repurchase program. In fiscal year 2023, the company repurchased approximately $1.08 billion of its common stock. Additionally, the company has a $5 billion share repurchase authorization from November 2022, indicating a continued commitment to share buybacks.
06—Continue