10-QPeriod: Q2 FY2022

Autodesk, Inc. Quarterly Report for Q2 Ended Jul 31, 2021

Filed September 1, 2021For Securities:ADSK

Summary

Autodesk, Inc. (ADSK) reported solid financial results for the fiscal second quarter ended July 31, 2021. The company demonstrated robust revenue growth, primarily driven by its subscription-based offerings. Net revenue increased by 16% year-over-year to $1,059.7 million, with subscription revenue growing by 21%. This demonstrates the continued success of Autodesk's strategic shift towards a subscription model, with recurring revenue representing a significant 98% of total net revenue. Profitability also saw an improvement, with diluted EPS rising to $0.52 from $0.44 in the prior year's comparable quarter. The company's operating income remained stable, indicating strong cost management alongside revenue expansion. Autodesk also highlighted continued strength in its customer retention, with Net Revenue Retention Rate (NR3) within the 100-110% range. The company's balance sheet remains strong, with substantial cash and cash equivalents, providing flexibility for ongoing investments and strategic initiatives, including two key acquisitions completed during the period. Investors should note the continued decline in maintenance revenue, which is expected as customers transition to subscription plans. While overall revenue growth is positive, the company's strategic acquisitions, Upchain and Innovyze, will be key drivers of future growth and integration success. The overall financial health and strategic execution position Autodesk well for continued growth in its core markets.

Financial Highlights

49 data points
Beta

Revenue

$1.06B

90.0% Gross Margin

Net Income

$115.00M

10.8% Net Margin

EPS (Diluted)

$0.52

Total Assets

$7.42B

Cash & Equivalents

$924.00M

Free Cash Flow

$186.00M

Financial Statements
Beta
Revenue$1.06B
Cost of Revenue$106.00M
Gross Profit$954.00M
R&D Expenses$277.00M
Operating Expenses$806.00M
Operating Income$148.00M
Net Income$115.00M
EPS (Basic)$0.52
EPS (Diluted)$0.52
Shares Outstanding (Basic)220.00M
Shares Outstanding (Diluted)222.00M

Key Highlights

  • 1Total net revenue increased 16% year-over-year to $1,059.7 million.
  • 2Subscription revenue saw a significant increase of 21% to $1,016.7 million, highlighting the strength of the company's subscription model.
  • 3Diluted earnings per share (EPS) rose to $0.52, up from $0.44 in the prior year's quarter.
  • 4Recurring revenue remains a dominant factor, accounting for 98% of total net revenue.
  • 5Net Revenue Retention Rate (NR3) remained strong, within the 100% to 110% range.
  • 6The company completed two strategic acquisitions: Upchain for approximately $139.8 million and Innovyze for $1,040.9 million.
  • 7Operating expenses increased by 18%, largely driven by higher R&D and marketing/sales costs, reflecting continued investment in growth.

Frequently Asked Questions

The primary driver of Autodesk's revenue growth was its subscription-based offerings. Subscription revenue increased by 21% year-over-year, contributing significantly to the overall 16% increase in net revenue.

While total operating expenses increased by 18% compared to the prior year, this reflects strategic investments in Research & Development and Marketing & Sales, as well as the impact of recent acquisitions (Upchain and Innovyze). The company is focused on investing in growth areas, and the increase in expenses is expected to support future revenue generation. Management closely monitors these expenses to ensure alignment with strategic priorities.

Maintenance revenue continued to decline, decreasing by 67% year-over-year. This trend is expected to continue as Autodesk incentivizes customers to transition from legacy maintenance plans to its subscription offerings. Subscription revenue, on the other hand, showed strong growth, indicating the successful execution of the company's subscription-first strategy.

Autodesk's balance sheet remains strong, with cash and cash equivalents of $923.5 million as of July 31, 2021. This liquidity provides the company with significant financial flexibility to pursue strategic initiatives, including the recent acquisitions of Upchain and Innovyze, and to continue its share repurchase programs. The strong balance sheet underpins the company's financial stability and capacity for future growth.