Summary
Autodesk, Inc.'s (ADSK) first-quarter fiscal 2019 results, filed on June 8, 2018, showed a notable increase in total net revenue to $559.9 million, up 15% year-over-year. This growth was primarily driven by a significant 102% surge in subscription revenue, which more than offset a 31% decline in maintenance revenue, indicating progress in the company's strategic shift towards a subscription-based business model. Annualized Recurring Revenue (ARR) also saw a healthy increase of 22% to $2.13 billion, reflecting the growing momentum of recurring revenue streams. Despite revenue growth, the company reported a net loss of $82.4 million ($0.38 per diluted share), an improvement from the prior year's loss of $129.6 million ($0.59 per diluted share). This loss is partly attributable to ongoing investments and restructuring costs. The adoption of new revenue recognition standards (ASC 606 and 340-40) had a material impact, adjusting reported figures and resulting in a cumulative decrease to accumulated deficit. The balance sheet reflects a solid liquidity position with $1.5 billion in cash and marketable securities. However, operating cash flow turned negative, decreasing to $(16.9) million from $45.2 million in the prior year, likely influenced by changes in working capital. The company continued its share repurchase program, demonstrating a commitment to returning value to shareholders. Management's discussion highlights the strategic transition, the importance of recurring revenue metrics, and the continued reliance on international markets, which represented 65% of net revenue.
Financial Highlights
48 data points| Revenue | $559.90M |
| Cost of Revenue | $66.80M |
| Gross Profit | $493.10M |
| R&D Expenses | $172.80M |
| Operating Expenses | $548.40M |
| Operating Income | -$55.30M |
| Net Income | -$82.40M |
| EPS (Basic) | $-0.38 |
| EPS (Diluted) | $-0.38 |
| Shares Outstanding (Basic) | 218.60M |
| Shares Outstanding (Diluted) | 218.60M |
Key Highlights
- 1Total net revenue increased by 15% to $559.9 million compared to the prior year's quarter.
- 2Subscription revenue more than doubled, increasing by 102% to $350.4 million, while maintenance revenue decreased by 31% to $181.2 million, reflecting a successful transition to a subscription model.
- 3Annualized Recurring Revenue (ARR) grew by 22% year-over-year to $2.13 billion, indicating strong recurring revenue momentum.
- 4The company reported a net loss of $82.4 million, a slight improvement from the $129.6 million loss in the same period last year.
- 5The adoption of ASC Topic 606 and 340-40 for revenue recognition impacted reported figures, including a reduction in accumulated deficit and adjustments to revenue and expense lines.
- 6Cash and cash equivalents and marketable securities stood at a healthy $1.5 billion, providing strong liquidity.
- 7Restructuring charges of $22.5 million were recognized, primarily related to employee termination costs and facility exit costs as part of a plan to re-align resources with strategic priorities.