Autodesk Reports Record Fourth Quarter Revenue
Autodesk Reports Record Fourth Quarter Revenue
Deferred Revenue Grows 16 Percent
Suites Revenue Grows 17 Percent
Fourth Quarter Fiscal 2013
- Revenue was $607 million, an increase of 2 percent compared to the fourth quarter of fiscal 2012.
- GAAP operating margin was 14 percent, compared to 15 percent in the fourth quarter of fiscal 2012.
- Non-GAAP operating margin increased by approximately 140 basis points to 25 percent, compared with 24 percent in the fourth quarter of fiscal 2012. A reconciliation of GAAP to non-GAAP results is provided in the accompanying tables.
- GAAP diluted earnings per share were $0.32, compared to $0.31 in the fourth quarter of fiscal 2012.
- Non-GAAP diluted earnings per share were $0.53, compared to $0.46 in the fourth quarter of fiscal 2012.
- Deferred revenue increased 16 percent to a record $835 million, compared to the fourth quarter of fiscal 2012.
- Cash flow from operating activities was $156 million, compared to $175 million in the fourth quarter of fiscal 2012.
- Revenue increased 4 percent to $2.3 billion, compared to fiscal 2012.
- Record total billings and maintenance billings.
- GAAP operating margin decreased to 13 percent, compared to 16 percent in fiscal 2012.
- Non-GAAP operating margin increased approximately 135 basis points to 25 percent, compared to 24 percent in fiscal 2012.
- GAAP diluted earnings per share were $1.07, compared to diluted earnings per share of $1.22 in fiscal 2012.
- Non-GAAP diluted earnings per share were an historic high of $1.94, compared to non-GAAP diluted earnings per share of $1.74 in fiscal 2012.
- Cash flow from operations was $559 million, a decrease of 3 percent compared to fiscal 2012.
"We are pleased with our stronger than expected fourth quarter results," said Carl Bass, Autodesk president and CEO. "While the global economic picture remains mixed, we ended the year strong, driven by increasing demand for our design and creation suites, record revenue in our AEC and manufacturing business segments, and strong large deal volume.
"Our ongoing cost management measures, which we consider as simply running the business wisely, contributed to the delivery of meaningful non-GAAP operating margin improvement for the year," continued Bass. "We achieved record non-GAAP EPS despite a mixed economy and lower than expected revenue growth. We also made meaningful progress on our 360 family of cloud based products, which we believe positions us and our customers for success in the future. Looking forward to fiscal 2014, we are continuing to lead the industry in innovation and drive revenue and profitability growth."
Fourth Quarter Operational Overview
EMEA revenue was $238 million, an increase of 2 percent compared to the fourth quarter last year as reported and an increase of 7 percent on a constant currency basis. Revenue in the Americas was $221 million, a decrease of 2 percent compared to the fourth quarter last year as reported. Revenue in Asia Pacific was $148 million, an increase of 11 percent compared to the fourth quarter last year as reported and 12 percent on a constant currency basis. Revenue from emerging economies was $84 million, a decrease of 11 percent compared to the fourth quarter last year as reported and 9 percent on a constant currency basis. Revenue from emerging economies represented 14 percent of total revenue in the fourth quarter.
Revenue from the Platform Solutions and Emerging Business segment was $198 million, a decrease of 7 percent compared to the fourth quarter last year. Revenue from the AEC business segment was $207 million, an increase of 18 percent compared to the fourth quarter last year. Revenue from the Manufacturing business segment was $155 million, an increase of 5 percent compared to the fourth quarter last year. Revenue from the Media and Entertainment business segment was $47 million, a decrease of 16 percent compared to the fourth quarter last year.
Revenue from Flagship products was $328 million, a decrease of 1 percent compared to the fourth quarter last year. Revenue from Suites was $189 million, an increase of 17 percent compared to the fourth quarter last year. Revenue from New and Adjacent products was $90 million, a decrease of 10 percent compared to the fourth quarter last year.
Fourth quarter results included a one-time benefit of approximately $24 million in revenue related to a promotion that was run in advance of an increase in upgrade pricing.
Deferred revenue at the end of the fourth quarter was a record high of $835 million, an increase of 16 percent compared to the fourth quarter last year.
"We achieved strong non-GAAP operating margin expansion in the fourth quarter and the fiscal year, driven by revenue growth and our ongoing focus on cost controls while continuing to make key investments in our business," said Mark Hawkins, Autodesk executive vice president and CFO. "Our balance sheet remains exceptionally strong as maintenance billings contributed to a record deferred revenue balance. During the fourth quarter, we also raised $750 million in our debt IPO, strengthening our domestic cash balance and providing Autodesk with greater financial flexibility."
The following statements are forward-looking statements that are based on current expectations and assumptions, and involve risks and uncertainties some of which are set forth below. Autodesk's business outlook for the first quarter and full year fiscal 2014 assumes, among other things, a continuation of the current economic environment and foreign exchange currency rate environment, and interest expense related to Autodesk's $750 million debt offering in December 2012.
First Quarter Fiscal 2014
|1Q FY14 Guidance Metrics|
1Q FY14 (ending
|Revenue (in millions)||$570 - $590|
|$0.23 - $0.28|
|EPS Non-GAAP||$0.41 - $0.46|
Non-GAAP earnings per diluted share exclude $0.12 related to stock-based compensation expense, and $0.06 for the amortization of acquisition related intangibles, net of tax.
Full Year Fiscal 2014
Net revenue for fiscal 2014 is expected to increase by approximately 6 percent compared to fiscal 2013. Autodesk anticipates fiscal 2014 GAAP operating margin to increase approximately 455 to 480 basis points and non-GAAP operating margin to increase approximately 125 to 150 basis points compared to fiscal 2013. A reconciliation between the GAAP and non-GAAP estimates for fiscal 2014 is provided in the tables following this press release.
Both first quarter fiscal 2014 and full year fiscal 2014 outlooks assume annual effective tax rates of approximately 24.5 percent and approximately 25.5 percent for GAAP and non-GAAP results, respectively. These rates do not include one-time discrete items but do reflect the recently enacted extension of the federal R&D tax credit benefit through December 31, 2013.
Earnings Conference Call and Webcast
Autodesk will host its fourth quarter conference call today at 5:00 p.m. ET. The live broadcast can be accessed at http://www.autodesk.com/investors. Supplemental financial information and prepared remarks for the conference call will be posted to the investor relations section of Autodesk's website simultaneously with this press release.
NOTE: The prepared remarks will not be read on the conference call. The conference call will include only brief remarks followed by questions and answers.
A replay of the broadcast will be available at 7:00 pm ET at http://www.autodesk.com/investors. This replay will be maintained on Autodesk's website for at least 12 months.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including statements in the paragraph under "Business Outlook" above, statements regarding future products, revenue and profitability, and other statements regarding our expected strategies, market and products positions, performance, and results. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: general market, political, economic and business conditions; failure to maintain our revenue growth and profitability; failure to maintain cost reductions and productivity increases or otherwise control our expenses; the success of our internal reorganization and restructuring activities; our performance in particular geographies, including emerging economies; the ability of governments around the world to meet their financial and debt obligations, and finance infrastructure projects; failure to successfully incorporate sales of licenses of products suites into our overall sales strategy; weak or negative growth in the industries we serve; failure to successfully expand adoption of our products including key initiatives; slowing momentum in maintenance billings or revenues; difficulties encountered in integrating new or acquired businesses and technologies; the inability to identify and realize the anticipated benefits of acquisitions; the financial and business condition of our reseller and distribution channels; dependence on and the timing of large transactions; fluctuation in foreign currency exchange rates; the success of our foreign currency hedging program; failure to achieve sufficient sell-through in our channels for new or existing products; pricing pressure; unexpected fluctuations in our tax rate; the timing and degree of expected investments in growth and efficiency opportunities; changes in the timing of product releases and retirements; failure of key new applications to achieve anticipated levels of customer acceptance; failure to achieve continued success in technology advancements, interruptions or terminations in the business of Autodesk consultants; the expense and impact of legal or regulatory proceedings; and any unanticipated accounting charges.
Further information on potential factors that could affect the financial results of Autodesk are included in Autodesk's report on Form 10-K for the year ended January 31, 2012 and Forms 10-Q for the quarters ended April 30, 2012, July 31, 2012 and October 31, 2012, which are on file with the U.S. Securities and Exchange Commission. Autodesk does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
Autodesk, Inc., is a leader in 3D design, engineering and entertainment software. Customers across the manufacturing, architecture, building, construction, and media and entertainment industries - including the last 18 Academy Award winners for Best Visual Effects - use Autodesk software to design, visualize, and simulate their ideas. Since its introduction of AutoCAD software in 1982, Autodesk continues to develop the broadest portfolio of state-of-the-art software for global markets. For additional information about Autodesk, visit www.autodesk.com.
Autodesk and AutoCAD are registered trademarks or trademarks of Autodesk, Inc., and/or its subsidiaries and/or affiliates in the USA and/or other countries. Academy Award is a registered trademark of the Academy of Motion Picture Arts and Sciences. All other brand names, product names, or trademarks belong to their respective holders. Autodesk reserves the right to alter product and service offerings, and specifications and pricing at any time without notice, and is not responsible for typographical or graphical errors that may appear in this document.
© 2013 Autodesk, Inc. All rights reserved.
|Condensed Consolidated Statements of Operations|
|(In millions, except per share data)|
Three Months Ended
Twelve Months Ended
|License and other||$||372.0||$||370.2||$||1,390.6||$||1,357.6|
|Total net revenue||606.9||592.4||2,312.2||2,215.6|
|Cost of revenue:|
|Cost of license and other revenue||52.4||48.3||198.1||187.1|
|Cost of maintenance revenue||9.6||9.2||40.4||42.0|
|Total cost of revenue||62.0||57.5||238.5||229.1|
|Marketing and sales||236.0||233.5||875.5||842.6|
|Research and development||149.4||149.5||600.0||566.5|
|General and administrative||67.7||60.1||248.4||223.1|
|Restructuring charges (benefits), net||7.2||—||43.9||(1.3||)|
|Total operating expenses||460.3||443.1||1,767.8||1,630.9|
|Income from operations||84.6||91.8||305.9||355.6|
|Interest and other income, net||1.5||1.1||4.1||7.3|
|Income before income taxes||86.1||92.9||310.0||362.9|
|Provision for income taxes||(11.6||)||(20.9||)||(62.6||)||(77.6||)|
|Basic net income per share||$||0.33||$||0.32||$||1.09||$||1.25|
|Diluted net income per share||$||0.32||$||0.31||$||1.07||$||1.22|
|Weighted average shares used in computing basic net income per share||224.1||226.1||226.4||227.7|
|Weighted average shares used in computing diluted net income per share||229.6||231.5||231.7||233.3|
|Condensed Consolidated Balance Sheets|
|January 31,||January 31,|
|Cash and cash equivalents||$||1,612.2||$||1,156.9|
|Accounts receivable, net||495.1||395.1|
|Deferred income taxes||42.2||30.1|
|Prepaid expenses and other current assets||60.8||59.4|
|Total current assets||2,552.4||1,895.9|
|Computer equipment, software, furniture and leasehold improvements, net||114.9||104.5|
|Purchased technologies, net||76.0||84.6|
|Deferred income taxes, net||122.8||135.8|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued income taxes||13.9||14.4|
|Other accrued liabilities||99.0||84.2|
|Total current liabilities||1,043.7||954.1|
|Long term income taxes payable||194.2||174.8|
|Long term notes payable, net of discount||745.6||—|
|Commitments and contingencies|
|Common stock and additional paid-in capital||1,449.8||1,365.4|
|Accumulated other comprehensive (loss) income||(5.7||)||5.9|
|Total stockholders' equity||2,043.2||1,882.9|
|Condensed Consolidated Statements of Cash Flows|
|Twelve Months Ended January 31,|
|Adjustments to reconcile net income to net cash provided by operating activities:|
|Depreciation, amortization and accretion||127.8||115.5|
|Stock-based compensation expense||156.3||108.8|
|Excess tax benefits from stock-based compensation||(12.9||)||(31.5||)|
|Restructuring charges (benefits), net||43.9||(1.3||)|
Other operating activities
|Changes in operating assets and liabilities, net of business combinations||(10.1||)||97.0|
|Net cash provided by operating activities||559.1||573.5|
|Purchases of marketable securities||(1,397.7||)||(614.2||)|
|Sales of marketable securities||332.9||149.5|
|Maturities of marketable securities||764.8||409.6|
|Acquisitions, net of cash acquired||(263.7||)||(221.7||)|
|Other investing activities||(27.1||)||(30.5||)|
|Net cash used in investing activities||(647.2||)||(370.3||)|
|Proceeds from issuance of common stock, net of issuance costs||220.2||176.1|
|Repurchases of common stock||(431.2||)||(327.4||)|
|Draws on line of credit||110.0||—|
|Proceeds from debt, net of discount||745.6||—|
|Repayments of line of credit||(110.0||)||—|
|Excess tax benefits from stock-based compensation||12.9||31.5|
|Other financing activities||(6.1||)||—|