10-QPeriod: Q1 FY2009

Autodesk, Inc. Quarterly Report for Q1 Ended Apr 30, 2008

Filed June 2, 2008For Securities:ADSK

Summary

Autodesk, Inc. reported strong financial results for the first quarter of fiscal year 2009, ending April 30, 2008. Net revenue increased by a robust 18% year-over-year to $598.8 million, driven by a 13% increase in license and other revenue and a significant 33% rise in maintenance revenue. This growth reflects the company's strategy to migrate customers to higher-value 2D vertical and 3D model-based design products, with 3D product revenue up 37%. Profitability also saw positive momentum, with income from operations increasing 18% to $119.9 million. The company maintained a strong balance sheet, ending the quarter with $909.1 million in cash and cash equivalents. Autodesk also proactively managed its capital structure by repurchasing 8.0 million shares of common stock during the quarter. The company also announced its intention to acquire Moldflow Corporation, signaling continued focus on strategic growth and market expansion, particularly in emerging economies which saw 41% revenue growth.

Financial Highlights

29 data points
Beta

Revenue

$598.80M

90.3% Gross Margin

Net Income

$94.60M

15.8% Net Margin

EPS (Diluted)

$0.41

Cash & Equivalents

$909.10M

Free Cash Flow

$171.90M

Financial Statements
Beta
Revenue$598.80M
Cost of Revenue$58.00M
Gross Profit$540.80M
R&D Expenses$145.60M
Operating Expenses$420.90M
Operating Income$119.90M
Net Income$94.60M
EPS (Basic)$0.42
EPS (Diluted)$0.41
Shares Outstanding (Basic)226.20M
Shares Outstanding (Diluted)232.60M

Key Highlights

  • 1Net revenue grew 18% to $598.8 million, compared to $508.6 million in the prior year's quarter.
  • 2License and other revenue increased by 13%, while maintenance revenue saw a significant 33% jump, indicating strong customer retention and subscription uptake.
  • 3Income from operations rose 18% to $119.9 million, demonstrating improved profitability.
  • 4The company repurchased 8.0 million shares of common stock for $256.6 million, returning capital to shareholders and offsetting dilution.
  • 5Autodesk announced its intention to acquire Moldflow Corporation for approximately $297.0 million, demonstrating a commitment to strategic growth.
  • 6Revenue from emerging economies increased by 41%, highlighting successful penetration in high-growth markets.
  • 7The company reported $909.1 million in cash and cash equivalents, underscoring a healthy liquidity position.

Frequently Asked Questions

Autodesk's revenue growth was primarily driven by a combination of increased license and other revenue (up 13%) and a substantial increase in maintenance revenue (up 33%). The company also saw strong growth in its 3D model-based design products, with revenue up 37% year-over-year.

Autodesk maintained a strong liquidity position with $909.1 million in cash and cash equivalents. The company also actively returned capital to shareholders by repurchasing 8.0 million shares of common stock for $256.6 million during the quarter, which also helps offset dilution from employee stock plans.

Autodesk's growth strategy focuses on migrating customers to higher-value 2D vertical and 3D model-based design products, expanding its geographic coverage, particularly in emerging economies, and strategic acquisitions. The company reported strong revenue growth in emerging economies (up 41%) and announced the intent to acquire Moldflow Corporation, aligning with these strategic pillars.

The filing highlights risks related to general economic conditions, currency exchange rate fluctuations, competition, reliance on key products like AutoCAD, intellectual property protection, and the potential impact of the announced Moldflow acquisition. The company also notes the ongoing legal proceedings related to historical stock option practices.