Summary
Autodesk, Inc.'s first-quarter 2019 filing (period ending April 30, 2019) reveals a significant shift in its business model towards subscriptions, as evidenced by a substantial 70% year-over-year increase in subscription revenue. This growth in subscription revenue helped drive a 31% increase in total net revenue to $735.5 million. The company reported a net loss of $24.2 million, or ($0.11) per share, an improvement from a net loss of $82.4 million in the prior year period, signaling progress towards profitability. The company's strategic transition from perpetual licenses to subscriptions is clearly underway, with a substantial portion of maintenance revenue customers migrating to subscription plans. While maintenance revenue saw a 38% decline, this is a direct result of the company's incentivized maintenance-to-subscription (M2S) program, aligning with the long-term subscription strategy. Total Annualized Recurring Revenue (ARR) reached $2.83 billion, with subscription plan ARR growing by 8% year-over-year.
Financial Highlights
48 data points| Revenue | $735.50M |
| Cost of Revenue | $82.70M |
| Gross Profit | $652.80M |
| R&D Expenses | $205.60M |
| Operating Expenses | $628.00M |
| Operating Income | $24.80M |
| Net Income | -$24.20M |
| EPS (Basic) | $-0.11 |
| EPS (Diluted) | $-0.11 |
| Shares Outstanding (Basic) | 219.60M |
| Shares Outstanding (Diluted) | 219.60M |
Key Highlights
- 1Total net revenue increased 31% to $735.5 million compared to the prior year period.
- 2Subscription revenue grew by 70% year-over-year, demonstrating the success of the company's strategic shift.
- 3Net loss improved significantly to $24.2 million from $82.4 million in the prior year period.
- 4Total ARR reached $2.83 billion, with a strong 8% increase in subscription plan ARR.
- 5Maintenance revenue declined by 38% due to the ongoing maintenance-to-subscription (M2S) migration program.
- 6The company's cash flow from operations turned positive, reaching $221.2 million compared to a use of cash of $16.9 million in the prior year period.
- 7New lease accounting standards (ASC Topic 842) were adopted, impacting the balance sheet by adding $277.5 million in operating lease right-of-use assets and liabilities.