01—Abstract
Summary
Summary of the 10-Q filed December 4, 2023. Cited figures are marked; the original filing is the authoritative source.
Autodesk, Inc. (ADSK) reported solid financial results for the third quarter of fiscal year 2024, ending October 31, 2023.
Net revenue saw a healthy increase of 10% year-over-year, reaching $1.41 billiona, driven primarily by a 11% rise in subscription revenue. This growth underscores the company's successful transition to a subscription-based model, with recurring revenue making up 98% of total net revenue. Profitability also improved, with income from operations increasing by 30% to $334 million.
Diluted net income per share rose to $1.12b, a significant improvement from the prior year's $0.91. The company maintained a strong balance sheet, with cash, cash equivalents, and marketable securities totaling $2.17 billion, providing ample liquidity. While the company faces ongoing macroeconomic challenges and a shifting distribution landscape, the consistent revenue growth and improved profitability indicate resilience and effective strategic execution.
02—Key points
Key Highlights
- Net revenue increased by 10% to $1.41 billion compared to the same period last year.
- Subscription revenue, the primary driver of growth, increased by 11% year-over-year.
- Income from operations rose by 30% to $334 million, indicating improved profitability.
- Diluted net income per share grew to $1.12 from $0.91 in the prior year.
- Recurring revenue remained strong, accounting for 98% of total net revenue.
- The company maintained robust liquidity with $2.17 billion in cash, cash equivalents, and marketable securities.
- Remaining Performance Obligations (RPO) stood at $5.24 billion, reflecting future contracted revenue.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2024, Autodesk kept $0.17.
- Revenue$1.41B100.0%
- Cost of revenue−$127.0M9.0%
- Gross profit$1.29B91.0%
- Operating costs−$953.0M67.4%
- Operating income$334.0M23.6%
- Interest, other & tax−$93.0M6.6%
- Net income$241.0M17.0%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed December 4, 2023Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $1.41B$1.28B | +10.5% |
| Cost of Revenue | $127.00M$120.00M | +5.8% |
| Gross Profit | $1.29B$1.16B | +10.9% |
| R&D Expenses | $339.00M$311.00M | +9.0% |
| Operating Expenses | $953.00M$904.00M | +5.4% |
| Operating Income | $334.00M$256.00M | +30.5% |
| Net Income | $241.00M$198.00M | +21.7% |
| EPS (Basic) | $1.13$0.92 | +22.8% |
| EPS (Diluted) | $1.12$0.91 | +23.1% |
| Shares Outstanding (Basic) | 214.00M216.00M | −0.9% |
| Shares Outstanding (Diluted) | 216.00M217.00M | −0.5% |
05—Questions
Frequently Asked Questions
What is the primary driver of Autodesk's revenue growth?
The primary driver of Autodesk's revenue growth is its subscription revenue, which increased by 11% year-over-year for the three months ended October 31, 2023. This reflects the company's successful transition to a subscription-based model and continued customer adoption of its software and cloud services.
How has the company's profitability changed?
Autodesk demonstrated improved profitability, with income from operations increasing by 30% to $334 million for the three months ended October 31, 2023. Diluted net income per share also saw a significant increase, rising to $1.12 from $0.91 in the same period last year.
What is the company's liquidity position?
The company maintains a strong liquidity position, with $2.17 billion in cash, cash equivalents, and marketable securities as of October 31, 2023. This provides ample financial flexibility to manage operations and pursue strategic initiatives.
What are Remaining Performance Obligations (RPO) and what do they indicate?
Remaining Performance Obligations (RPO) represent the total amount of deferred revenue and unbilled deferred revenue for which revenue has not yet been recognized. Autodesk's RPO stood at $5.24 billion as of October 31, 2023. A significant portion of this ($3.52 billion) is expected to be recognized as revenue within the next 12 months, indicating a strong pipeline of future contracted revenue.
06—Continue