10-QPeriod: Q1 FY2025

Autodesk, Inc. Quarterly Report for Q1 Ended Apr 30, 2024

Filed June 10, 2024For Securities:ADSK

Summary

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 billion. 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 billion. 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% 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.

Financial Highlights

50 data points
Beta

Revenue

$1.42B

90.3% Gross Margin

Net Income

$252.00M

17.8% Net Margin

EPS (Diluted)

$1.16

Total Assets

$9.83B

Cash & Equivalents

$1.68B

Free Cash Flow

$487.00M

Financial Statements
Beta
Revenue$1.42B
Cost of Revenue$137.00M
Gross Profit$1.28B
R&D Expenses$346.00M
Operating Expenses$981.00M
Operating Income$299.00M
Interest Expense$18.00M
Net Income$252.00M
EPS (Basic)$1.17
EPS (Diluted)$1.16
Shares Outstanding (Basic)215.00M
Shares Outstanding (Diluted)217.00M

Key Highlights

  • 1Total net revenue grew 12% to $1.42 billion, driven by an 11% increase in subscription revenue.
  • 2Net income increased to $252 million ($1.16 per diluted share) from $161 million ($0.75 per diluted share) in the prior year.
  • 3Gross profit rose 12% to $1.28 billion, indicating strong profitability from core operations.
  • 4The company completed two acquisitions: Payapps for $381 million (construction payments) and PIX for $266 million (media & entertainment production management).
  • 5Recurring revenue remained robust at 97% of total net revenue.
  • 6Operating cash flow was $494 million, compared to $723 million in the prior year, influenced by changes in working capital.
  • 7A significant increase in Goodwill of $491 million was recorded due to acquisitions.

Frequently Asked Questions

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.

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.

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.

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).