Summary
Autodesk, Inc.'s fiscal Q2 2021 (ending July 31, 2020) report shows robust revenue growth driven by a significant increase in subscription revenue, up 27% year-over-year for the quarter and 31% year-to-date. This growth is partially offset by a decline in maintenance revenue as the company continues its transition to a subscription-based model. Total net revenue increased 15% for the quarter and 17% year-to-date. The company demonstrated strong profitability with net income of $98.2 million for the quarter, a substantial increase from $40.2 million in the prior year period. This performance highlights Autodesk's successful transition towards a recurring revenue model and its ability to generate strong financial results even amidst the ongoing COVID-19 pandemic. The company's strategic priorities, including delivering on the promise of subscription, digitizing operations, and reimagining construction and manufacturing, appear to be gaining traction. Despite some COVID-19 related impacts such as a slight decrease in product usage and a mid-teen percentage decline in new business in Q2, the company is seeing a stable recovery and increased usage of its cloud collaboration products. Management's focus on cost management, including reduced travel and entertainment expenses, and continued investment in R&D and strategic areas, positions Autodesk to navigate the economic challenges and emerge stronger. The company maintained a strong liquidity position with $1.52 billion in cash and marketable securities.
Financial Highlights
50 data points| Revenue | $913.10M |
| Cost of Revenue | $80.90M |
| Gross Profit | $832.20M |
| R&D Expenses | $232.50M |
| Operating Expenses | $686.10M |
| Operating Income | $146.10M |
| Net Income | $98.20M |
| EPS (Basic) | $0.45 |
| EPS (Diluted) | $0.44 |
| Shares Outstanding (Basic) | 219.20M |
| Shares Outstanding (Diluted) | 222.20M |
Key Highlights
- 1Total net revenue increased by 15% to $913.1 million for the three months ended July 31, 2020, compared to the prior year period.
- 2Subscription revenue saw a significant increase of 27% to $841.2 million for the three months ended July 31, 2020, indicating strong adoption of the subscription model.
- 3Net income more than doubled to $98.2 million for the three months ended July 31, 2020, compared to $40.2 million in the prior year period.
- 4Gross profit increased by 16% to $832.2 million, demonstrating improved profitability on revenue.
- 5Operating expenses increased by 7% to $686.1 million, outpacing revenue growth at a slower rate, leading to improved operating income.
- 6Remaining Performance Obligations (RPO) stood at $3.35 billion, providing visibility into future contracted revenue.
- 7The company maintained a strong cash position with $1.44 billion in cash and cash equivalents as of July 31, 2020.