Public Company Information:
NASDAQ:
ADSK
SAN RAFAEL, Calif.–(BUSINESS WIRE)–Autodesk, Inc. (NASDAQ: ADSK) recently announced its financial results for the second quarter of fiscal 2017.
Second Quarter Fiscal 2017 Highlights:
- Total subscriptions increased by 109,000 from the first quarter of fiscal 2017 to 2.82 million at the end of the second quarter. New model subscriptions rose by 125,000 to 692,000.
- Annualized Recurring Revenue (ARR) reached $1.47 billion, reflecting a 10% increase compared to the same period last year and a 14% growth on a constant currency basis. New model ARR was $371 million, up 82% compared to the second quarter last year and 86% on a constant currency basis.
- Deferred revenue grew by 23% to $1.52 billion, compared to $1.24 billion in the second quarter last year.
- Revenue totaled $551 million, a decrease of 10% compared to the second quarter last year as reported, and 6% on a constant currency basis. This decline is attributed to the shift towards ratably recognized revenue and lower initial purchase prices for new offerings.
- Total GAAP spending (cost of revenue plus operating expenses) was $614 million, an increase of 1% compared to the second quarter last year. This includes a $16 million charge related to restructuring and facility exit costs.
- Non-GAAP spending was $525 million, a decrease of 4% compared to the second quarter last year. A reconciliation between GAAP and non-GAAP results is provided in the accompanying tables.
- GAAP diluted net loss per share was $(0.44), compared to $(1.18) in the second quarter last year.
- Non-GAAP diluted net income per share was $0.05, down from $0.19 in the second quarter last year.
Carl Bass, President and CEO of Autodesk, stated, "We achieved strong second-quarter results driven by growth in new model subscriptions, the conclusion of perpetual license sales, and effective cost management."
Scott Herren, CFO of Autodesk, added, "Continued adoption of product subscriptions led to robust growth in new model subscriptions, new model ARR, and deferred revenue. We are confident in our long-term goals of growing our subscription base by a 20% CAGR through fiscal year 2020, which will drive a 24% CAGR in ARR and $6 per share in free cash flow."
Total subscriptions were 2.82 million, with new model subscriptions reaching 692,000, up 125,000 from the previous quarter. Maintenance subscriptions decreased by 16,000.
Total ARR for the second quarter increased 10% to $1.47 billion compared to the second quarter last year, and 14% on a constant currency basis. New model ARR was $371 million, up 82% compared to the second quarter last year, while maintenance ARR was $1.10 billion, a decrease of 3% compared to the second quarter last year.
Revenue in the Americas was $230 million, a 2% decrease compared to the second quarter last year as reported, and a 5% increase on a constant currency basis. Revenue in EMEA was $221 million, a 2% decrease as reported, but a 5% increase on a constant currency basis. Revenue in APAC was $100 million, a significant drop of 32% as reported, and 30% on a constant currency basis.
The AEC segment saw a revenue increase of 8%, while the Manufacturing segment increased by 3%. The PSEB segment experienced a sharp decline of 47%, and the M&E segment fell by 16%.
Looking ahead, Autodesk expects the third quarter of fiscal 2017 to bring revenue between $470 million and $485 million, with GAAP EPS ranging from $(0.81) to $(0.74) and non-GAAP EPS from $(0.27) to $(0.22). For the full fiscal year 2017, revenue is expected to be between $2,000 million and $2,050 million, with GAAP spend growth around 2% and non-GAAP spend growth approximately -2%. GAAP EPS is projected between $(2.97) and $(2.74), and non-GAAP EPS between $(0.70) and $(0.55).
Autodesk's business outlook assumes a continuation of the current economic environment and foreign exchange rate conditions, along with the success of its business model transition.
For more information about Autodesk's financial performance and upcoming events, visit their official website or attend the earnings conference call. A replay of the call will be available for 12 months.