10-Q/APeriod: Q2 FY2014

Autodesk, Inc. Quarterly Report (Amendment) for Q2 Ended Jul 31, 2013

Filed September 6, 2013For Securities:ADSK

Summary

Autodesk, Inc. (ADSK) reported its financial results for the three and six months ended July 31, 2013. While total net revenue saw a slight decrease year-over-year for both periods (down 1% and 2% respectively), the company experienced a shift in revenue mix, with a decrease in license and other revenue partially offset by a 6% increase in subscription revenue for both periods. Operating expenses were managed effectively, leading to a decrease in income from operations for the quarter (down 10%) and six months (down 12%). The company continued its strategic shift towards cloud and mobile computing, reflected in the growth of its suites products. Autodesk also actively managed its capital through share repurchases and maintained a strong liquidity position with $2.4 billion in cash and marketable securities at the end of the period.

Financial Highlights

49 data points
Beta

Revenue

$561.70M

87.9% Gross Margin

Net Income

$61.70M

11.0% Net Margin

EPS (Diluted)

$0.27

Total Assets

$4.22B

Cash & Equivalents

$1.40B

Free Cash Flow

$48.50M

Financial Statements
Beta
Revenue$561.70M
Cost of Revenue$67.80M
Gross Profit$493.90M
R&D Expenses$148.90M
Operating Expenses$410.30M
Operating Income$83.60M
Net Income$61.70M
EPS (Basic)$0.28
EPS (Diluted)$0.27
Shares Outstanding (Basic)223.10M
Shares Outstanding (Diluted)228.30M

Key Highlights

  • 1Total net revenue for the three months ended July 31, 2013, decreased 1% to $561.7 million compared to $568.7 million in the prior year.
  • 2Subscription revenue increased 6% to $248.5 million for the three months ended July 31, 2013, compared to $234.7 million in the prior year, indicating a successful transition in business model.
  • 3Income from operations decreased by 10% to $83.6 million for the three months ended July 31, 2013, compared to $92.9 million in the prior year.
  • 4The company repurchased $239.8 million of common stock during the six months ended July 31, 2013, demonstrating a commitment to returning capital to shareholders.
  • 5Autodesk reported $2.4 billion in cash and marketable securities at July 31, 2013, indicating a strong liquidity position.
  • 6Restructuring charges of $1.7 million and $2.1 million were recorded for the three and six months ended July 31, 2013, respectively, related to a company-wide restructuring plan.
  • 7Revenue from suites represented 34% of net revenue for the quarter, an increase from 29% in the prior year, highlighting the growing importance of integrated product offerings.

Frequently Asked Questions

For the three and six months ended July 31, 2013, Autodesk experienced a slight decrease in total net revenue compared to the prior year. However, subscription revenue showed positive growth, indicating a strategic shift. Income from operations decreased in both periods, likely due to revenue pressures and ongoing strategic investments.

Autodesk is undergoing a transition towards a business model with more flexible license and service offerings, including cloud-based solutions. This is leading to an increase in subscription revenue and ratable revenue streams, which contribute to a more predictable business over time. However, this transition is expected to reduce upfront perpetual license revenue in the short term.

Autodesk maintains a strong liquidity position, with $2.4 billion in cash and marketable securities as of July 31, 2013. The company is actively managing its capital through share repurchases, returning excess cash to shareholders while also investing in growth initiatives and acquisitions.

The Architecture, Engineering, and Construction (AEC) segment showed revenue growth, driven by strong suite sales. The Platform Solutions and Emerging Business (PSEB) segment experienced a decline, primarily due to lower revenue from flagship products like AutoCAD. The Media and Entertainment (M&E) segment also saw a decrease in revenue.