Summary
Autodesk, Inc. reported its financial results for the quarter and six months ended July 31, 2018. The company experienced a significant increase in total net revenue, primarily driven by a substantial surge in subscription revenue, which more than doubled year-over-year. This growth was partially offset by a decrease in maintenance revenue, reflecting the company's ongoing transition from a perpetual license and maintenance model to a subscription-based business model. Despite the revenue growth, the company reported a net loss for both periods, though the loss narrowed considerably compared to the prior year. Key operational improvements include a significant increase in Annualized Recurring Revenue (ARR) and total subscriptions, indicating positive momentum in the shift towards a recurring revenue model. The company also completed an acquisition of Assemble Systems, Inc. during the period, which is expected to integrate with Autodesk's existing platform. While the transition presents some accounting complexities and impacts revenue recognition, the overall trend suggests progress in achieving its strategic objectives.
Financial Highlights
50 data points| Revenue | $611.70M |
| Cost of Revenue | $69.80M |
| Gross Profit | $541.90M |
| R&D Expenses | $180.80M |
| Operating Expenses | $566.60M |
| Operating Income | -$24.70M |
| Net Income | -$39.40M |
| EPS (Basic) | $-0.18 |
| EPS (Diluted) | $-0.18 |
| Shares Outstanding (Basic) | 219.00M |
| Shares Outstanding (Diluted) | 219.00M |
Key Highlights
- 1Total net revenue increased by 22% year-over-year for the three months ended July 31, 2018, reaching $611.7 million.
- 2Subscription revenue saw a dramatic increase of 114% year-over-year for the three months ended July 31, 2018, reaching $420.6 million, while maintenance revenue decreased by 36%.
- 3Annualized Recurring Revenue (ARR) grew by 14% year-over-year to $2.35 billion as of July 31, 2018.
- 4Total subscriptions increased by 6% year-over-year to 3.9 million as of July 31, 2018.
- 5The company reported a net loss of $39.4 million for the three months ended July 31, 2018, a significant improvement from the $144.0 million net loss in the prior year.
- 6Autodesk acquired Assemble Systems, Inc. on July 3, 2018, for $93.6 million.
- 7The company adopted new revenue recognition standards (ASC Topic 606 and ASC Topic 340-40), which impacted reported revenue, deferred revenue, and accumulated deficit, though the overall impact on net loss was positive for the reported periods.