10-QPeriod: Q1 FY2014

Autodesk, Inc. Quarterly Report for Q1 Ended Apr 30, 2013

Filed June 5, 2013For Securities:ADSK

Summary

Autodesk Inc.'s first-quarter fiscal year 2014 report (ending April 30, 2013) shows a 3% decrease in net revenue to $570.4 million, compared to $588.6 million in the prior year's quarter. This decline was primarily driven by a 9% drop in license and other revenue, partially offset by a 6% increase in subscription revenue. Net income also decreased to $55.6 million ($0.24 per diluted share) from $78.9 million ($0.34 per diluted share) in the same period last year. The company experienced a decrease in operating income by 13% year-over-year, reflecting the ongoing global economic environment and foreign exchange headwinds. Autodesk continues to emphasize its strategy shift towards cloud and mobile computing, with revenue from suites increasing and comprising a larger portion of overall revenue. Despite the revenue decline, the company maintained a strong liquidity position with $2.48 billion in cash and marketable securities.

Financial Highlights

49 data points
Beta

Revenue

$570.40M

88.2% Gross Margin

Net Income

$55.60M

9.7% Net Margin

EPS (Diluted)

$0.24

Total Assets

$4.29B

Cash & Equivalents

$1.66B

Free Cash Flow

$198.30M

Financial Statements
Beta
Revenue$570.40M
Cost of Revenue$67.50M
Gross Profit$502.90M
R&D Expenses$150.80M
Operating Expenses$421.50M
Operating Income$81.40M
Net Income$55.60M
EPS (Basic)$0.25
EPS (Diluted)$0.24
Shares Outstanding (Basic)223.80M
Shares Outstanding (Diluted)229.30M

Key Highlights

  • 1Net revenue declined 3% year-over-year to $570.4 million, impacted by a decrease in license revenue.
  • 2Subscription revenue showed a 6% increase, indicating a positive shift in recurring revenue streams.
  • 3Net income decreased by 29.5% to $55.6 million, with diluted EPS falling to $0.24 from $0.34.
  • 4Operating expenses were reduced by 3% to $421.5 million, demonstrating cost management efforts.
  • 5The company maintained a robust liquidity position with $2.48 billion in cash and marketable securities as of April 30, 2013.
  • 6Revenue from product suites increased by 8% and represented a larger percentage (31%) of total revenue, aligning with strategic goals.
  • 7International revenue accounted for 71% of total net revenue, highlighting global dependence and associated risks.

Frequently Asked Questions

The primary driver for the decrease in Autodesk's revenue was a 9% decline in 'License and other revenue', which was partially offset by a 6% increase in 'Subscription revenue'.

Autodesk is emphasizing its strategy shift towards cloud and mobile computing. This is reflected in the increasing revenue from 'suites' products, which grew 8% and now represent 31% of total net revenue, up from 28% in the prior year's quarter. This indicates a positive trend in product adoption aligned with their strategic direction.

Autodesk maintained a strong liquidity position, with cash, cash equivalents, and marketable securities totaling $2.48 billion as of April 30, 2013. This provides significant financial flexibility for operations and strategic investments.

Foreign currency exchange rate changes negatively impacted Autodesk's financial results. The company stated that had the applicable exchange rates from the prior year been in effect, net revenue would have been flat year-over-year on a constant currency basis. This highlights the ongoing impact of currency volatility on reported results.