01—Abstract
Summary
Summary of the 10-Q filed September 3, 2024. Cited figures are marked; the original filing is the authoritative source.
Autodesk, Inc. (ADSK) reported strong financial results for the second quarter of fiscal year 2025, ending July 31, 2024.
Total net revenue grew 12% year-over-year to $1.51 billiona, driven primarily by an 11% increase in subscription revenue. This growth reflects the continued success of Autodesk's transition to a subscription-based model and the expansion of its cloud offerings. The company demonstrated solid profitability, with income from operations increasing to $343 million and diluted net income per share rising to $1.30.
While deferred revenue saw a slight decrease quarter-over-quarter, remaining performance obligations (RPO) remained substantial at $5.86 billionb, indicating a healthy pipeline of future recognized revenue. The company also continued its capital return program, repurchasing shares during the quarter. Investors will be keen to monitor the ongoing internal investigation into free cash flow and non-GAAP operating margin practices, though the company stated it cannot reasonably estimate the financial impact at this time.
02—Key points
Key Highlights
- Total net revenue increased 12% year-over-year to $1.51 billion for the second quarter.
- Subscription revenue, the primary driver of growth, increased 11% to $1.41 billion.
- Income from operations rose to $343 million, up from $262 million in the prior year's quarter.
- Diluted net income per share grew to $1.30, an increase from $1.03 in the same period last year.
- Remaining Performance Obligations (RPO) stood at $5.86 billion, representing future revenue potential.
- The company repurchased 504 thousand shares of common stock for $124 million during the six months ended July 31, 2024.
- Autodesk continues to expand its strategic acquisitions, with three acquisitions completed in the first half of fiscal 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Autodesk kept $0.19.
- Revenue$1.50B100.0%
- Cost of revenue−$140.0M9.3%
- Gross profit$1.36B90.7%
- Operating costs−$1.02B67.9%
- Operating income$343.0M22.8%
- Interest, other & tax−$61.0M4.1%
- Net income$282.0M18.7%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed September 3, 2024Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $1.50B$1.34B | +11.9% |
| Cost of Revenue | $140.00M$127.00M | +10.2% |
| Gross Profit | $1.36B$1.22B | +12.1% |
| R&D Expenses | $368.00M$355.00M | +3.7% |
| Operating Expenses | $1.02B$956.00M | +6.9% |
| Operating Income | $343.00M$262.00M | +30.9% |
| Interest Expense | $18.00M— | — |
| Net Income | $282.00M$222.00M | +27.0% |
| EPS (Basic) | $1.31$1.04 | +26.0% |
| EPS (Diluted) | $1.30$1.03 | +26.2% |
| Shares Outstanding (Basic) | 216.00M214.00M | +0.9% |
| Shares Outstanding (Diluted) | 217.00M215.00M | +0.9% |
05—Questions
Frequently Asked Questions
What was Autodesk's revenue performance in the reported quarter?
Autodesk reported a 12% increase in total net revenue for the three months ended July 31, 2024, reaching $1.51 billion. This growth was primarily driven by an 11% increase in subscription revenue.
How did Autodesk perform in terms of profitability?
The company demonstrated improved profitability. Income from operations increased to $343 million for the quarter, and diluted net income per share rose to $1.30, compared to $1.03 in the same period last year.
What is the outlook for future revenue based on the financial statements?
Autodesk's Remaining Performance Obligations (RPO) stood at $5.86 billion as of July 31, 2024. Of this amount, $3.90 billion is expected to be recognized as revenue within the next 12 months, indicating a strong revenue pipeline.
Are there any significant ongoing investigations or legal matters?
Yes, Autodesk is cooperating with an internal investigation regarding its free cash flow and non-GAAP operating margin practices, which has also attracted the attention of the SEC and the U.S. Attorney's Office. Additionally, a federal securities class action complaint has been filed. At this stage, the company cannot reasonably estimate the amount of any possible financial loss resulting from these matters.
06—Continue