01—Abstract
Summary
Summary of the 10-Q filed June 10, 2024. Cited figures are marked; the original filing is the authoritative source.
Autodesk, Inc. reported solid financial results for the three months ended April 30, 2024, with total net revenue increasing by 12% year-over-year to $1.42 billiona.
This growth was primarily driven by an 11% rise in subscription revenue, highlighting the company's successful transition to a subscription-based model. Gross profit also saw a significant increase of 12%, reaching $1.28 billionb. Net income rose substantially to $252 million, or $1.16 per diluted share, compared to $161 million, or $0.75 per diluted share, in the prior year's comparable period.
Operationally, the company continues to focus on its strategic priorities, including building its design and make platform and accelerating the adoption of key products like Fusion, Forma, and Flow. Investments in cloud offerings and the integration of recent acquisitions, such as Payapps and PIX, are expected to enhance Autodesk's construction and media & entertainment capabilities.
Despite a slight decrease in deferred revenue and remaining performance obligations compared to the previous quarter, the overall financial health remains strong, supported by a healthy recurring revenue percentage of 97%c and a positive outlook for continued growth. Investors should note the ongoing internal investigation into free cash flow and non-GAAP operating margin practices, which has led to a securities class action lawsuit, though the company is cooperating with authorities.
02—Key points
Key Highlights
- Total net revenue grew 12% to $1.42 billion, driven by an 11% increase in subscription revenue.
- Net income increased to $252 million ($1.16 per diluted share) from $161 million ($0.75 per diluted share) in the prior year.
- Gross profit rose 12% to $1.28 billion, indicating strong profitability from core operations.
- The company completed two acquisitions: Payapps for $381 million (construction payments) and PIX for $266 million (media & entertainment production management).
- Recurring revenue remained robust at 97% of total net revenue.
- Operating cash flow was $494 million, compared to $723 million in the prior year, influenced by changes in working capital.
- A significant increase in Goodwill of $491 million was recorded due to acquisitions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Autodesk kept $0.18.
- Revenue$1.42B100.0%
- Cost of revenue−$137.0M9.7%
- Gross profit$1.28B90.3%
- Operating costs−$981.0M69.2%
- Operating income$299.0M21.1%
- Interest, other & tax−$47.0M3.3%
- Net income$252.0M17.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed June 10, 2024Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $1.42B$1.27B | +11.7% |
| Cost of Revenue | $137.00M$127.00M | +7.9% |
| Gross Profit | $1.28B$1.14B | +12.1% |
| R&D Expenses | $346.00M$327.00M | +5.8% |
| Operating Expenses | $981.00M$925.00M | +6.1% |
| Operating Income | $299.00M$217.00M | +37.8% |
| Interest Expense | $18.00M— | — |
| Net Income | $252.00M$161.00M | +56.5% |
| EPS (Basic) | $1.17$0.75 | +56.0% |
| EPS (Diluted) | $1.16$0.75 | +54.7% |
| Shares Outstanding (Basic) | 215.00M215.00M | 0.0% |
| Shares Outstanding (Diluted) | 217.00M216.00M | +0.5% |
05—Questions
Frequently Asked Questions
What are the key drivers of Autodesk's revenue growth in this quarter?
Autodesk's revenue growth was primarily driven by an 11% increase in subscription revenue. This reflects the company's successful ongoing transition to a subscription-based business model and continued customer adoption of its software and cloud offerings.
What is the impact of recent acquisitions on Autodesk's financial statements?
Autodesk completed two significant acquisitions in the quarter: Payapps Limited for $381 million and the PIX business of X2X, LLC for $266 million. These acquisitions contributed to a substantial increase in goodwill and intangible assets. The results of these acquisitions are included in the Condensed Consolidated Statements of Operations from their respective acquisition dates.
What is the status of the internal investigation and related legal proceedings?
Autodesk's Audit Committee commenced an internal investigation into the company's free cash flow and non-GAAP operating margin practices in March 2024. The company has notified the SEC and is cooperating with the SEC and the U.S. Attorney's Office. A federal securities class action complaint has been filed against the company and certain executives related to these matters. At this stage, the company cannot reasonably estimate the amount of any possible financial loss that could result from these matters.
How is Autodesk managing its cash flow and liquidity?
Autodesk reported $494 million in net cash provided by operating activities for the quarter, although this was lower than the prior year due to working capital timing. The company ended the quarter with $2.23 billion in cash, cash equivalents, and marketable securities. It has a $1.5 billion revolving credit facility, with no outstanding borrowings as of the end of the quarter. Share repurchases were minimal in this quarter ($9 million) compared to the prior year ($534 million).
06—Continue