10-QPeriod: Q1 FY2022

Autodesk, Inc. Quarterly Report for Q1 Ended Apr 30, 2021

Filed June 3, 2021For Securities:ADSK

Summary

Autodesk, Inc. (ADSK) reported strong financial performance for the first quarter ended April 30, 2021. Total net revenue increased by 12% year-over-year to $989.3 million, driven primarily by an 18% surge in subscription revenue, which now constitutes 98% of total revenue, demonstrating the company's successful transition to a subscription-based model. Net income grew significantly to $155.6 million, up from $66.5 million in the prior year's quarter, with diluted EPS rising to $0.70 from $0.30. The company also announced a key acquisition of Innovyze, a water infrastructure software leader, for $1.04 billion. This strategic move is expected to bolster Autodesk's offerings in civil engineering and the water infrastructure sector. While cash and cash equivalents decreased due to investments and acquisitions, the company maintained a healthy operating cash flow of $336.1 million, underscoring its operational efficiency and financial resilience amidst ongoing global economic uncertainties.

Financial Highlights

49 data points
Beta

Revenue

$989.00M

90.7% Gross Margin

Net Income

$156.00M

15.8% Net Margin

EPS (Diluted)

$0.70

Total Assets

$7.30B

Cash & Equivalents

$923.00M

Free Cash Flow

$316.00M

Financial Statements
Beta
Revenue$989.00M
Cost of Revenue$92.00M
Gross Profit$897.00M
R&D Expenses$266.00M
Operating Expenses$763.00M
Operating Income$134.00M
Net Income$156.00M
EPS (Basic)$0.71
EPS (Diluted)$0.70
Shares Outstanding (Basic)220.00M
Shares Outstanding (Diluted)222.00M

Key Highlights

  • 1Total net revenue increased 12% to $989.3 million, driven by strong subscription revenue growth.
  • 2Subscription revenue grew 18% year-over-year, reinforcing the company's successful transition to a subscription model.
  • 3Net income saw a substantial increase to $155.6 million, with diluted EPS at $0.70.
  • 4The company completed a significant acquisition of Innovyze for $1.04 billion, aimed at expanding its water infrastructure software capabilities.
  • 5Operating cash flow remained strong at $336.1 million, indicating healthy core operations.
  • 6Recurring revenue represents a dominant 98% of total net revenue.
  • 7Net revenue retention rate (NR3) was within the 100%-110% range, showing stable customer retention.

Frequently Asked Questions

Autodesk's revenue growth was primarily driven by a strong 18% increase in subscription revenue, which now accounts for 98% of the company's total net revenue. This highlights the success of their ongoing transition to a subscription-based business model.

The acquisition of Innovyze for $1.04 billion, completed on March 31, 2021, was a significant use of cash, contributing to a decrease in cash and cash equivalents. However, it is strategically important for expanding Autodesk's presence in the water infrastructure software market and is expected to complement their existing BIM offerings.

Autodesk continues to demonstrate a strong recurring revenue base, making up 98% of total net revenue. The Net Revenue Retention Rate (NR3) remained healthy, within the range of 100%-110%, indicating that existing customers are maintaining or increasing their spending on Autodesk's products and services.

Autodesk showed significant improvement in profitability. Net income rose to $155.6 million from $66.5 million in the prior year's quarter. Diluted earnings per share also increased substantially to $0.70 from $0.30, reflecting enhanced operational efficiency and revenue growth.