8-KEarnings & ResultsRegulation FDExhibits & Filings

Autodesk, Inc. 8-K Report, Financial Results (Feb 27, 2020)

Filed February 27, 2020For Securities:ADSK

Summary

Autodesk, Inc. (ADSK) filed an 8-K on February 27, 2020, to furnish its earnings press release for the fourth quarter ended January 31, 2020. The filing highlights the company's use of key performance metrics such as billings, recurring revenue, Annual Recurring Revenue (ARR), net revenue retention rate (NR3), Average Revenue Per Seat (ARPS), and subscriptions to monitor the strength and long-term health of its recurring business. These metrics are presented alongside GAAP financial measures and are intended to provide investors with additional insight into management's evaluation of the business. The report also details Autodesk's practice of presenting non-GAAP financial measures, including historical and future non-GAAP net earnings and earnings per diluted share. The company explains its rationale for excluding various items such as stock-based compensation, amortization of intangibles, CEO transition costs, goodwill impairment, acquisition-related costs, restructuring costs, gains/losses on strategic investments, and certain tax items. Autodesk emphasizes that these non-GAAP measures are supplemental to GAAP results and are provided to offer greater transparency into management's decision-making, facilitate period-to-period comparisons, and aid in analyzing the company's core business performance.

Key Highlights

  • 1Autodesk reported its Q4 FY2020 financial results on February 27, 2020.
  • 2The company emphasizes key performance metrics like billings, recurring revenue, ARR, NR3, ARPS, and subscriptions for assessing business health.
  • 3Autodesk utilizes non-GAAP financial measures (e.g., non-GAAP net earnings per share) to provide additional insights into operational performance.
  • 4Key exclusions from non-GAAP measures include stock-based compensation, amortization of intangibles, and CEO transition costs.
  • 5The company details specific reasons for excluding various expenses, such as acquisition costs, restructuring charges, and gains/losses on strategic investments, to provide a clearer view of core operations.
  • 6Autodesk supplements its GAAP financial reporting with these non-GAAP measures for enhanced transparency and comparability.
  • 7Supplemental investor materials were posted on the company's investor relations website, underscoring its use of this channel for disclosing material information.

Frequently Asked Questions

Autodesk uses key performance metrics such as billings, recurring revenue, Annual Recurring Revenue (ARR), net revenue retention rate (NR3), Average Revenue Per Seat (ARPS), and subscriptions. These metrics are crucial for monitoring the strength and long-term health of the company's recurring revenue business, offering investors insights into operational performance beyond traditional GAAP measures.

Autodesk provides non-GAAP financial measures to supplement its GAAP results and offer investors greater transparency into management's financial and operational decision-making. These measures are used internally for budgeting and evaluating performance, and the company believes they help investors better understand core business operations, compare performance across periods and with peers, and analyze the company's earning potential.

Autodesk commonly excludes items such as stock-based compensation expenses, amortization of developed technologies and purchased intangibles, CEO transition costs, goodwill impairment charges, acquisition-related costs, restructuring and other exit costs, and gains or losses on strategic investments and dispositions. Certain tax items and their effects are also adjusted.

The primary limitations of non-GAAP measures are that they are not prepared in accordance with GAAP and may differ from those used by other companies. They exclude certain items that could materially impact reported financial results. Autodesk acknowledges these limitations and urges investors to review the reconciliation of its non-GAAP measures to comparable GAAP measures provided in its filings and not to rely solely on any single financial measure.