01—Abstract
Summary
Summary of the 10-K filed June 10, 2024. Cited figures are marked; the original filing is the authoritative source.
Autodesk, Inc. (ADSK) has filed its Annual Report on Form 10-K for the fiscal year ending January 31, 2024.
The company, a global leader in 3D design, engineering, and entertainment technology, reported total net revenue of $5.50 billiona, an increase of 10% year-over-year, with recurring revenue comprising 98% of the total. This growth was primarily driven by an increase in subscription revenue. The company continues its strategic transition to a subscription-based business model, including the modernization of its go-to-market strategy and the introduction of new transaction models.
Key product families like Architecture, Engineering, and Construction (AEC) and Manufacturing (MFG) showed strong revenue growth. Autodesk also highlighted its commitment to Environmental, Social, and Governance (ESG) initiatives, including progress on greenhouse gas reduction targets. The report also details significant legal proceedings, including an ongoing internal investigation regarding free cash flow and non-GAAP operating margin practices, which has led to SEC and USAO inquiries and a securities class action lawsuit.
While the company is cooperating with these investigations, the potential financial impact remains uncertain. Autodesk repurchased approximately $795 millionb of its common stock in fiscal year 2024, continuing its practice of returning capital to stockholders.
02—Key points
Key Highlights
- Total net revenue reached $5.50 billion, a 10% increase year-over-year, driven by subscription growth.
- Recurring revenue represented 98% of total net revenue, underscoring the strength of the subscription model.
- The company is actively modernizing its go-to-market strategy, transitioning to new transaction models and reinforcing direct customer relationships.
- Key product families, including AEC and Manufacturing, demonstrated robust revenue growth.
- Autodesk remains committed to ESG initiatives, making progress on greenhouse gas reduction targets and investing in renewable energy.
- Significant legal proceedings are underway, including an internal investigation into financial practices, with SEC and USAO inquiries and ongoing litigation, the financial impact of which is currently indeterminate.
- The company repurchased $795 million of its common stock during fiscal year 2024, demonstrating a commitment to returning capital to shareholders.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Autodesk kept $0.16.
- Revenue$5.50B100.0%
- Cost of revenue−$511.0M9.3%
- Gross profit$4.99B90.7%
- Operating costs−$3.86B70.2%
- Operating income$1.13B20.5%
- Interest, other & tax−$222.0M4.0%
- Net income$906.0M16.5%
Where FY2024 revenue went
$5.50B- Other operating costs: $2.48B, 45% of revenue
- R&D: $1.37B, 25% of revenue
- Net income: $906.0M, 16% of revenue
- Cost of revenue: $511.0M, 9.3% of revenue
- Interest, other & tax: $222.0M, 4.0% of revenue
Kept 16% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed June 10, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $5.50B$5.00B | +9.8% |
| Cost of Revenue | $511.00M$480.00M | +6.5% |
| Gross Profit | $4.99B$4.53B | +10.2% |
| R&D Expenses | $1.37B$1.22B | +12.6% |
| Operating Expenses | $3.86B$3.54B | +9.1% |
| Operating Income | $1.13B$989.00M | +14.1% |
| Interest Expense | $71.00M$83.00M | −14.5% |
| Net Income | $906.00M$823.00M | +10.1% |
| EPS (Basic) | $4.23$3.81 | +11.0% |
| EPS (Diluted) | $4.19$3.78 | +10.8% |
| Shares Outstanding (Basic) | 214.00M216.00M | −0.9% |
| Shares Outstanding (Diluted) | 216.00M218.00M | −0.9% |
05—Questions
Frequently Asked Questions
What was Autodesk's financial performance in fiscal year 2024?
Autodesk reported total net revenue of $5.50 billion, a 10% increase compared to the prior fiscal year. Recurring revenue, a key indicator of the subscription model's strength, accounted for 98% of total net revenue. The company experienced growth across its major product families, particularly in AEC and Manufacturing.
What are the key strategic priorities for Autodesk moving forward?
Autodesk is focused on building a trusted design and make platform, accelerating the adoption of its newer offerings like Fusion and Forma, and transforming the customer experience. This includes further developing its industry clouds, integrating AI capabilities, and modernizing its go-to-market motion through new transaction models and enhanced customer relationships.
Are there any significant legal or regulatory issues facing Autodesk?
Yes, Autodesk disclosed an ongoing internal investigation concerning its free cash flow and non-GAAP operating margin practices. This investigation has led to inquiries from the SEC and the U.S. Attorney's Office for the Northern District of California, and the company is cooperating with these entities. A securities class action lawsuit has also been filed against the company. While Autodesk is cooperating, the potential financial impact of these matters remains uncertain.
How is Autodesk managing its capital and returning value to shareholders?
Autodesk has a strong balance sheet with $2.48 billion in cash, cash equivalents, and marketable securities as of January 31, 2024. The company repurchased approximately $795 million of its common stock in fiscal year 2024, continuing its program to offset dilution from employee stock plans and return excess cash to stockholders. The company does not currently pay cash dividends.
06—Continue