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| 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.