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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Autodesk Inc | NASDAQ:ADSK | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
5.33 | 2.53% | 215.955 | 215.86 | 216.03 | 216.485 | 210.20 | 210.59 | 1,944,950 | 20:23:33 |
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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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94-2819853
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(State or other jurisdiction of
incorporation or organization)
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|
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(I.R.S. employer
Identification No.)
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111 McInnis Parkway,
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San Rafael,
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California
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94903
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
|
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Trading Symbol(s)
|
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Name of each exchange on which registered
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Common Stock, par value $0.01 per share
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ADSK
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The Nasdaq Global Select Market
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Page No.
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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ITEM 1.
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FINANCIAL STATEMENTS
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Three Months Ended July 31,
|
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Six Months Ended July 31,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net revenue:
|
|
|
|
|
|
|
|
||||||||
Subscription
|
$
|
841.2
|
|
|
$
|
663.7
|
|
|
$
|
1,644.2
|
|
|
$
|
1,259.5
|
|
Maintenance
|
51.2
|
|
|
103.5
|
|
|
113.3
|
|
|
215.5
|
|
||||
Total subscription and maintenance revenue
|
892.4
|
|
|
767.2
|
|
|
1,757.5
|
|
|
1,475.0
|
|
||||
Other
|
20.7
|
|
|
29.6
|
|
|
41.3
|
|
|
57.3
|
|
||||
Total net revenue
|
913.1
|
|
|
796.8
|
|
|
1,798.8
|
|
|
1,532.3
|
|
||||
Cost of revenue:
|
|
|
|
|
|
|
|
||||||||
Cost of subscription and maintenance revenue
|
58.5
|
|
|
53.0
|
|
|
115.9
|
|
|
112.7
|
|
||||
Cost of other revenue
|
15.0
|
|
|
17.9
|
|
|
32.1
|
|
|
31.7
|
|
||||
Amortization of developed technology
|
7.4
|
|
|
8.6
|
|
|
14.8
|
|
|
17.8
|
|
||||
Total cost of revenue
|
80.9
|
|
|
79.5
|
|
|
162.8
|
|
|
162.2
|
|
||||
Gross profit
|
832.2
|
|
|
717.3
|
|
|
1,636.0
|
|
|
1,370.1
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Marketing and sales
|
350.9
|
|
|
316.8
|
|
|
692.2
|
|
|
630.1
|
|
||||
Research and development
|
232.5
|
|
|
215.4
|
|
|
449.9
|
|
|
421.0
|
|
||||
General and administrative
|
93.2
|
|
|
101.4
|
|
|
198.0
|
|
|
200.5
|
|
||||
Amortization of purchased intangibles
|
9.5
|
|
|
9.7
|
|
|
19.2
|
|
|
19.5
|
|
||||
Restructuring and other exit costs, net
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.4
|
|
||||
Total operating expenses
|
686.1
|
|
|
643.5
|
|
|
1,359.3
|
|
|
1,271.5
|
|
||||
Income from operations
|
146.1
|
|
|
73.8
|
|
|
276.7
|
|
|
98.6
|
|
||||
Interest and other expense, net
|
(17.1
|
)
|
|
(7.3
|
)
|
|
(57.2
|
)
|
|
(23.5
|
)
|
||||
Income before income taxes
|
129.0
|
|
|
66.5
|
|
|
219.5
|
|
|
75.1
|
|
||||
Provision for income taxes
|
(30.8
|
)
|
|
(26.3
|
)
|
|
(54.8
|
)
|
|
(59.1
|
)
|
||||
Net income
|
$
|
98.2
|
|
|
$
|
40.2
|
|
|
$
|
164.7
|
|
|
$
|
16.0
|
|
Basic net income per share
|
$
|
0.45
|
|
|
$
|
0.18
|
|
|
$
|
0.75
|
|
|
$
|
0.07
|
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Diluted net income per share
|
$
|
0.44
|
|
|
$
|
0.18
|
|
|
$
|
0.74
|
|
|
$
|
0.07
|
|
Weighted average shares used in computing basic net income per share
|
219.2
|
|
|
219.6
|
|
|
219.2
|
|
|
219.6
|
|
||||
Weighted average shares used in computing diluted net income per share
|
222.2
|
|
|
222.4
|
|
|
222.0
|
|
|
222.3
|
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net income
|
$
|
98.2
|
|
|
$
|
40.2
|
|
|
$
|
164.7
|
|
|
$
|
16.0
|
|
Other comprehensive income (loss), net of reclassifications:
|
|
|
|
|
|
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|
||||||||
Net loss on derivative instruments (net of tax effect of $2.3, ($1.7), $1.9 and ($2.0), respectively)
|
(19.5
|
)
|
|
(4.3
|
)
|
|
(15.5
|
)
|
|
(1.0
|
)
|
||||
Change in net unrealized gain (loss) on available-for-sale debt securities (net of tax effect of zero, $0.1, $0.1 and ($0.3), respectively)
|
0.9
|
|
|
(0.2
|
)
|
|
1.3
|
|
|
0.9
|
|
||||
Change in defined benefit pension items (net of tax effect of zero, $0.4, zero and $0.5, respectively)
|
—
|
|
|
(1.8
|
)
|
|
(0.3
|
)
|
|
(2.4
|
)
|
||||
Net change in cumulative foreign currency translation gain (loss) (net of tax effect of ($0.4), ($0.4), ($0.4) and zero, respectively)
|
43.2
|
|
|
(22.8
|
)
|
|
20.3
|
|
|
(33.2
|
)
|
||||
Total other comprehensive income (loss)
|
24.6
|
|
|
(29.1
|
)
|
|
5.8
|
|
|
(35.7
|
)
|
||||
Total comprehensive income (loss)
|
$
|
122.8
|
|
|
$
|
11.1
|
|
|
$
|
170.5
|
|
|
$
|
(19.7
|
)
|
|
July 31, 2020
|
|
January 31, 2020
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,439.8
|
|
|
$
|
1,774.7
|
|
Marketable securities
|
79.7
|
|
|
69.0
|
|
||
Accounts receivable, net
|
490.1
|
|
|
652.3
|
|
||
Prepaid expenses and other current assets
|
194.3
|
|
|
163.3
|
|
||
Total current assets
|
2,203.9
|
|
|
2,659.3
|
|
||
Computer equipment, software, furniture and leasehold improvements, net
|
177.8
|
|
|
161.7
|
|
||
Operating lease right-of-use assets
|
416.2
|
|
|
438.8
|
|
||
Developed technologies, net
|
61.0
|
|
|
70.9
|
|
||
Goodwill
|
2,459.1
|
|
|
2,445.0
|
|
||
Deferred income taxes, net
|
51.5
|
|
|
56.4
|
|
||
Long-term other assets
|
377.8
|
|
|
347.2
|
|
||
Total assets
|
$
|
5,747.3
|
|
|
$
|
6,179.3
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
99.2
|
|
|
$
|
83.7
|
|
Accrued compensation
|
193.6
|
|
|
272.1
|
|
||
Accrued income taxes
|
32.5
|
|
|
21.2
|
|
||
Deferred revenue
|
2,102.1
|
|
|
2,176.1
|
|
||
Operating lease liabilities
|
53.8
|
|
|
48.1
|
|
||
Current portion of long-term notes payable, net
|
—
|
|
|
449.7
|
|
||
Other accrued liabilities
|
138.4
|
|
|
168.3
|
|
||
Total current liabilities
|
2,619.6
|
|
|
3,219.2
|
|
||
Long-term deferred revenue
|
776.8
|
|
|
831.0
|
|
||
Long-term operating lease liabilities
|
393.3
|
|
|
411.7
|
|
||
Long-term income taxes payable
|
20.2
|
|
|
19.1
|
|
||
Long-term deferred income taxes
|
89.9
|
|
|
82.5
|
|
||
Long-term notes payable, net
|
1,636.1
|
|
|
1,635.1
|
|
||
Long-term other liabilities
|
144.1
|
|
|
119.8
|
|
||
Stockholders’ equity (deficit):
|
|
|
|
||||
Common stock and additional paid-in capital
|
2,492.7
|
|
|
2,317.0
|
|
||
Accumulated other comprehensive loss
|
(154.5
|
)
|
|
(160.3
|
)
|
||
Accumulated deficit
|
(2,270.9
|
)
|
|
(2,295.8
|
)
|
||
Total stockholders’ equity (deficit)
|
67.3
|
|
|
(139.1
|
)
|
||
Total liabilities and stockholders' equity (deficit)
|
$
|
5,747.3
|
|
|
$
|
6,179.3
|
|
|
Six Months Ended July 31,
|
||||||
|
2020
|
|
2019
|
||||
Operating activities:
|
|
|
|
||||
Net income
|
$
|
164.7
|
|
|
$
|
16.0
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation, amortization and accretion
|
60.0
|
|
|
64.8
|
|
||
Stock-based compensation expense
|
194.1
|
|
|
163.4
|
|
||
Deferred income taxes
|
14.5
|
|
|
35.8
|
|
||
Restructuring and other exit costs, net
|
—
|
|
|
0.4
|
|
||
Other
|
36.0
|
|
|
(4.2
|
)
|
||
Changes in operating assets and liabilities
|
|
|
|
|
|||
Accounts receivable
|
162.7
|
|
|
125.8
|
|
||
Prepaid expenses and other assets
|
(52.0
|
)
|
|
27.4
|
|
||
Accounts payable and other liabilities
|
(42.8
|
)
|
|
(138.1
|
)
|
||
Deferred revenue
|
(130.0
|
)
|
|
158.3
|
|
||
Accrued income taxes
|
11.3
|
|
|
(9.1
|
)
|
||
Net cash provided by operating activities
|
418.5
|
|
|
440.5
|
|
||
Investing activities:
|
|
|
|
||||
Purchases of marketable securities
|
(17.0
|
)
|
|
(19.9
|
)
|
||
Sales of marketable securities
|
—
|
|
|
22.4
|
|
||
Maturities of marketable securities
|
11.0
|
|
|
5.0
|
|
||
Capital expenditures
|
(46.7
|
)
|
|
(29.5
|
)
|
||
Purchases of developed technologies
|
(4.8
|
)
|
|
—
|
|
||
Other investing activities
|
(54.3
|
)
|
|
(10.5
|
)
|
||
Net cash used in investing activities
|
(111.8
|
)
|
|
(32.5
|
)
|
||
Financing activities:
|
|
|
|
||||
Proceeds from issuance of common stock, net of issuance costs
|
58.5
|
|
|
49.7
|
|
||
Taxes paid related to net share settlement of equity awards
|
(39.6
|
)
|
|
(31.2
|
)
|
||
Repurchases of common stock
|
(209.0
|
)
|
|
(134.6
|
)
|
||
Repayment of debt
|
(450.0
|
)
|
|
(250.0
|
)
|
||
Other financing activities
|
(2.5
|
)
|
|
—
|
|
||
Net cash used in financing activities
|
(642.6
|
)
|
|
(366.1
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
1.0
|
|
|
(4.0
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
(334.9
|
)
|
|
37.9
|
|
||
Cash and cash equivalents at beginning of period
|
1,774.7
|
|
|
886.0
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,439.8
|
|
|
$
|
923.9
|
|
|
|
|
|
||||
Supplemental cash flow disclosure:
|
|
|
|
||||
Non-cash financing activities:
|
|
|
|
||||
Fair value of common stock issued to settle liability-classified restricted stock units
|
$
|
28.7
|
|
|
$
|
—
|
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
(in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net revenue by product family:
|
|
|
|
|
|
|
|
||||||||
Architecture, Engineering and Construction
|
$
|
397.0
|
|
|
$
|
334.2
|
|
|
$
|
779.7
|
|
|
$
|
638.5
|
|
AutoCAD and AutoCAD LT
|
271.9
|
|
|
231.3
|
|
|
534.1
|
|
|
444.5
|
|
||||
Manufacturing
|
185.5
|
|
|
174.6
|
|
|
368.4
|
|
|
342.1
|
|
||||
Media and Entertainment
|
53.3
|
|
|
50.8
|
|
|
105.9
|
|
|
96.3
|
|
||||
Other
|
5.4
|
|
|
5.9
|
|
|
10.7
|
|
|
10.9
|
|
||||
Total net revenue
|
$
|
913.1
|
|
|
$
|
796.8
|
|
|
$
|
1,798.8
|
|
|
$
|
1,532.3
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenue by geographic area:
|
|
|
|
|
|
|
|
||||||||
Americas
|
|
|
|
|
|
|
|
||||||||
U.S.
|
$
|
309.5
|
|
|
$
|
267.9
|
|
|
$
|
610.1
|
|
|
$
|
517.0
|
|
Other Americas
|
62.0
|
|
|
58.0
|
|
|
123.6
|
|
|
104.7
|
|
||||
Total Americas
|
371.5
|
|
|
325.9
|
|
|
733.7
|
|
|
621.7
|
|
||||
Europe, Middle East and Africa
|
354.7
|
|
|
316.2
|
|
|
699.5
|
|
|
613.4
|
|
||||
Asia Pacific
|
186.9
|
|
|
154.7
|
|
|
365.6
|
|
|
297.2
|
|
||||
Total net revenue
|
$
|
913.1
|
|
|
$
|
796.8
|
|
|
$
|
1,798.8
|
|
|
$
|
1,532.3
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenue by sales channel:
|
|
|
|
|
|
|
|
||||||||
Indirect
|
$
|
639.3
|
|
|
$
|
560.2
|
|
|
$
|
1,262.7
|
|
|
$
|
1,076.6
|
|
Direct
|
273.8
|
|
|
236.6
|
|
|
536.1
|
|
|
455.7
|
|
||||
Total net revenue
|
$
|
913.1
|
|
|
$
|
796.8
|
|
|
$
|
1,798.8
|
|
|
$
|
1,532.3
|
|
|
|
|
|
|
|
|
|
|
|
|
July 31, 2020
|
||||||||||||||||||||||||||
|
|
(in millions)
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||
Cash equivalents (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Commercial paper
|
$
|
36.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
36.0
|
|
|
$
|
—
|
|
|
$
|
36.0
|
|
|
$
|
—
|
|
|
|
Money market funds
|
712.3
|
|
|
—
|
|
|
—
|
|
|
712.3
|
|
|
712.3
|
|
|
—
|
|
|
—
|
|
||||||||
|
Other (2)
|
2.5
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
|
2.0
|
|
|
0.5
|
|
|
—
|
|
||||||||
Marketable securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Short-term available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
Other (3)
|
6.0
|
|
|
—
|
|
|
—
|
|
|
6.0
|
|
|
—
|
|
|
6.0
|
|
|
—
|
|
|||||||
|
Short-term trading securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
Mutual funds (4)
|
63.4
|
|
|
10.8
|
|
|
(0.5
|
)
|
|
73.7
|
|
|
73.7
|
|
|
—
|
|
|
—
|
|
|||||||
Non-marketable securities derivative assets (5)
|
1.8
|
|
|
0.4
|
|
|
(0.2
|
)
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
|||||||||
Derivative contract assets (5)
|
0.3
|
|
|
14.1
|
|
|
(0.2
|
)
|
|
14.2
|
|
|
—
|
|
|
14.2
|
|
|
—
|
|
|||||||||
Derivative contract liabilities (6)
|
—
|
|
|
—
|
|
|
(30.7
|
)
|
|
(30.7
|
)
|
|
—
|
|
|
(30.7
|
)
|
|
—
|
|
|||||||||
|
|
Total
|
$
|
822.3
|
|
|
$
|
25.3
|
|
|
$
|
(31.6
|
)
|
|
$
|
816.0
|
|
|
$
|
788.0
|
|
|
$
|
26.0
|
|
|
$
|
2.0
|
|
(1)
|
Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities with stated contractual maturities due within one year.
|
(2)
|
Consists of custody cash deposits and certificates of deposit.
|
(3)
|
Consists of commercial paper and municipal bonds.
|
(4)
|
See Note 11, "Deferred Compensation " for more information.
|
(5)
|
Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets.
|
(6)
|
Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets.
|
|
|
|
January 31, 2020
|
||||||||||||||||||||||||||
|
|
(in millions)
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||
Cash equivalents (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Agency bonds
|
$
|
6.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6.0
|
|
|
$
|
—
|
|
|
$
|
6.0
|
|
|
$
|
—
|
|
|
|
Commercial paper
|
36.8
|
|
|
—
|
|
|
—
|
|
|
36.8
|
|
|
—
|
|
|
36.8
|
|
|
—
|
|
||||||||
|
Money market funds
|
1,135.5
|
|
|
—
|
|
|
—
|
|
|
1,135.5
|
|
|
1,135.5
|
|
|
—
|
|
|
—
|
|
||||||||
|
Other (2)
|
2.3
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|
1.3
|
|
|
1.0
|
|
|
—
|
|
||||||||
Marketable securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Short-term trading securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
Mutual funds (3)
|
59.9
|
|
|
9.2
|
|
|
(0.1
|
)
|
|
69.0
|
|
|
69.0
|
|
|
—
|
|
|
—
|
|
|||||||
Non-marketable equity security derivative asset (4)
|
0.1
|
|
|
0.5
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|||||||||
Derivative contract assets (4)
|
1.0
|
|
|
9.2
|
|
|
(1.3
|
)
|
|
8.9
|
|
|
—
|
|
|
8.9
|
|
|
—
|
|
|||||||||
Derivative contract liabilities (5)
|
—
|
|
|
—
|
|
|
(4.7
|
)
|
|
(4.7
|
)
|
|
—
|
|
|
(4.7
|
)
|
|
—
|
|
|||||||||
|
|
Total
|
$
|
1,241.6
|
|
|
$
|
18.9
|
|
|
$
|
(6.1
|
)
|
|
$
|
1,254.4
|
|
|
$
|
1,205.8
|
|
|
$
|
48.0
|
|
|
$
|
0.6
|
|
(1)
|
Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities with stated contractual maturities due in one year.
|
(2)
|
Consists of custody cash deposits and certificates of deposit.
|
(3)
|
See Note 11, "Deferred Compensation " for more information.
|
(4)
|
Included in “Prepaid expenses and other current assets,” or "Long-term other assets," in the accompanying Condensed Consolidated Balance Sheets.
|
(5)
|
Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets.
|
|
Six Months Ended July 31,
|
|
Cumulative Amount as of
|
||||||||
(in millions)
|
2020
|
|
2019
|
|
July 31, 2020
|
||||||
Upward adjustments (1)
|
$
|
3.0
|
|
|
$
|
1.7
|
|
|
$
|
12.4
|
|
Negative adjustments, including impairments (1)
|
(34.8
|
)
|
|
(3.4
|
)
|
|
(43.8
|
)
|
|||
Net adjustments
|
$
|
(31.8
|
)
|
|
$
|
(1.7
|
)
|
|
$
|
(31.4
|
)
|
(1)
|
Included in "Interest and other expense, net" on the Company's Condensed Consolidated Statements of Operations.
|
|
|
Three Months Ended July 31, 2020
|
||||||||||||||||||||||
|
|
Net revenue
|
|
Cost of revenue
|
|
Operating expenses
|
||||||||||||||||||
(in millions)
|
|
Subscription revenue
|
|
Maintenance revenue
|
|
Cost of subscription and maintenance revenue
|
|
Marketing and sales
|
|
Research and development
|
|
General and administrative
|
||||||||||||
Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded
|
|
$
|
841.2
|
|
|
$
|
51.2
|
|
|
$
|
58.5
|
|
|
$
|
350.9
|
|
|
$
|
232.5
|
|
|
$
|
93.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income
|
|
$
|
1.6
|
|
|
$
|
—
|
|
|
$
|
(0.1
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
—
|
|
|
$
|
(0.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Six Months Ended July 31, 2020
|
||||||||||||||||||||||
|
|
Net revenue
|
|
Cost of revenue
|
|
Operating expenses
|
||||||||||||||||||
|
|
Subscription revenue
|
|
Maintenance Revenue
|
|
Cost of subscription and maintenance revenue
|
|
Marketing and sales
|
|
Research and development
|
|
General and administrative
|
||||||||||||
Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded
|
|
$
|
1,644.2
|
|
|
$
|
113.3
|
|
|
$
|
115.9
|
|
|
$
|
692.2
|
|
|
$
|
449.9
|
|
|
$
|
198.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income
|
|
$
|
3.7
|
|
|
$
|
0.6
|
|
|
$
|
(0.3
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(0.6
|
)
|
|
|
Three Months Ended July 31, 2019
|
||||||||||||||||||||||
|
|
Net Revenue
|
|
Cost of revenue
|
|
Operating expenses
|
||||||||||||||||||
(in millions)
|
|
Subscription Revenue
|
|
Maintenance Revenue
|
|
Cost of subscription and maintenance revenue
|
|
Marketing and sales
|
|
Research and development
|
|
General and administrative
|
||||||||||||
Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded
|
|
$
|
663.7
|
|
|
$
|
103.5
|
|
|
$
|
53.0
|
|
|
$
|
316.8
|
|
|
$
|
215.4
|
|
|
$
|
101.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income
|
|
$
|
3.2
|
|
|
$
|
1.8
|
|
|
$
|
(0.2
|
)
|
|
$
|
(0.8
|
)
|
|
$
|
(0.2
|
)
|
|
$
|
(0.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Six Months Ended July 31, 2019
|
||||||||||||||||||||||
|
|
Net revenue
|
|
Cost of revenue
|
|
Operating expenses
|
||||||||||||||||||
|
|
Subscription revenue
|
|
Maintenance Revenue
|
|
Cost of subscription and maintenance revenue
|
|
Marketing and sales
|
|
Research and development
|
|
General and administrative
|
||||||||||||
Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded
|
|
$
|
1,259.5
|
|
|
$
|
215.5
|
|
|
$
|
112.7
|
|
|
$
|
630.1
|
|
|
$
|
421.0
|
|
|
$
|
200.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income
|
|
$
|
5.4
|
|
|
$
|
3.1
|
|
|
$
|
(0.3
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
(1.2
|
)
|
|
Balance Sheet Location
|
|
Fair Value at
|
||||||
(in millions)
|
July 31, 2020
|
|
January 31, 2020
|
||||||
Derivative Assets
|
|
|
|
|
|
||||
Foreign currency contracts designated as cash flow hedges
|
Prepaid expenses and other current assets
|
|
$
|
7.3
|
|
|
$
|
1.0
|
|
Derivatives not designated as hedging instruments
|
Prepaid expenses and other current assets and long-term other assets
|
|
7.2
|
|
|
8.4
|
|
||
Total derivative assets
|
|
|
$
|
14.5
|
|
|
$
|
9.4
|
|
Derivative Liabilities
|
|
|
|
|
|
||||
Foreign currency contracts designated as cash flow hedges
|
Other accrued liabilities
|
|
$
|
21.6
|
|
|
$
|
2.8
|
|
Derivatives not designated as hedging instruments
|
Other accrued liabilities
|
|
9.1
|
|
|
1.9
|
|
||
Total derivative liabilities
|
|
|
$
|
30.7
|
|
|
$
|
4.7
|
|
|
Foreign Currency Contracts
|
||||||||||||||
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
(in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Amount of (loss) gain recognized in accumulated other comprehensive loss on derivatives (effective portion)
|
$
|
(18.6
|
)
|
|
$
|
(0.9
|
)
|
|
$
|
(13.5
|
)
|
|
$
|
3.1
|
|
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion)
|
|
|
|
|
|
|
|
||||||||
Net revenue
|
$
|
1.6
|
|
|
$
|
5.0
|
|
|
$
|
4.3
|
|
|
$
|
8.5
|
|
Cost of revenue
|
(0.1
|
)
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
||||
Operating expenses
|
(0.7
|
)
|
|
(1.4
|
)
|
|
(2.0
|
)
|
|
(4.1
|
)
|
||||
Total
|
$
|
0.8
|
|
|
$
|
3.4
|
|
|
$
|
2.0
|
|
|
$
|
4.1
|
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
(in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Amount and location of (loss) gain recognized on derivatives in net income
|
|
|
|
|
|
|
|
||||||||
Interest and other expense, net
|
$
|
(4.4
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
(5.4
|
)
|
|
$
|
1.7
|
|
|
Unvested
restricted
stock units
|
|
Weighted
average grant
date fair value
per share
|
|||
|
(in thousands)
|
|
|
|||
Unvested restricted stock units at January 31, 2020
|
4,732.3
|
|
|
$
|
147.24
|
|
Granted
|
867.8
|
|
|
176.50
|
|
|
Vested
|
(818.5
|
)
|
|
147.68
|
|
|
Canceled/Forfeited
|
(123.1
|
)
|
|
148.02
|
|
|
Performance Adjustment (1)
|
15.4
|
|
|
166.97
|
|
|
Unvested restricted stock units at July 31, 2020
|
4,673.9
|
|
|
$
|
152.44
|
|
(1)
|
Based on Autodesk's financial results and relative total stockholder return for the fiscal 2020 performance period. The performance stock units were attained at rates ranging from 96.6% to 101.1% of the target award.
|
•
|
Up to one third of the performance stock units may vest following year one, depending upon the achievement of the performance criteria for fiscal 2021 as well as 1-year Relative TSR (covering year one).
|
•
|
Up to one third of the performance stock units may vest following year two, depending upon the achievement of the performance criteria for year two as well as 2-year Relative TSR (covering years one and two).
|
•
|
Up to one third of the performance stock units may vest following year three, depending upon the achievement of the performance criteria for year three as well as 3-year Relative TSR (covering years one, two and three).
|
|
Six Months Ended July 31,
|
||||||
|
2020
|
|
2019
|
||||
Issued shares (in millions)
|
0.5
|
|
|
0.5
|
|
||
Average price of issued shares
|
$
|
122.54
|
|
|
$
|
99.46
|
|
Weighted average grant date fair value of awards granted under the ESPP (1)
|
$
|
45.70
|
|
|
$
|
52.41
|
|
(1)
|
Calculated as of the award grant date using the Black-Scholes Merton (“BSM") option pricing model.
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
(in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Cost of subscription and maintenance revenue
|
$
|
4.2
|
|
|
$
|
3.4
|
|
|
$
|
7.9
|
|
|
$
|
7.0
|
|
Cost of other revenue
|
1.5
|
|
|
1.4
|
|
|
3.0
|
|
|
2.7
|
|
||||
Marketing and sales
|
43.4
|
|
|
36.0
|
|
|
84.1
|
|
|
68.5
|
|
||||
Research and development
|
35.3
|
|
|
30.8
|
|
|
68.2
|
|
|
57.5
|
|
||||
General and administrative
|
11.5
|
|
|
16.6
|
|
|
30.9
|
|
|
27.7
|
|
||||
Stock-based compensation expense related to stock awards and ESPP purchases
|
95.9
|
|
|
88.2
|
|
|
194.1
|
|
|
163.4
|
|
||||
Tax benefit
|
(0.2
|
)
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
||||
Stock-based compensation expense related to stock awards and ESPP purchases, net of tax
|
$
|
95.7
|
|
|
$
|
88.1
|
|
|
$
|
193.8
|
|
|
$
|
163.1
|
|
|
Six Months Ended July 31, 2020
|
|
Six Months Ended July 31, 2019
|
||||
|
Performance Stock Units (1)
|
|
ESPP (1)
|
|
Performance Stock Units (1)
|
|
ESPP (1)
|
Range of expected volatilities
|
50.7%
|
|
39.4 - 45.8%
|
|
36.3%
|
|
36.6 - 39.7%
|
Range of expected lives (in years)
|
N/A
|
|
0.5 - 2.0
|
|
N/A
|
|
0.5 - 2.0
|
Expected dividends
|
—%
|
|
—%
|
|
—%
|
|
—%
|
Range of risk-free interest rates
|
0.3%
|
|
0.3 - 0.5%
|
|
2.5%
|
|
2.4 - 2.5%
|
(1)
|
There were no performance stock units or ESPP awards granted during the three months ended July 31, 2020 and 2019, where the fair value was estimated by a Monte Carlo simulation model or a BSM option pricing model, respectively.
|
(in millions)
|
July 31, 2020
|
|
January 31, 2020
|
||||
Developed technologies, at cost
|
$
|
653.3
|
|
|
$
|
647.1
|
|
Customer relationships, trade names, patents, and user lists, at cost (1)
|
534.2
|
|
|
532.2
|
|
||
Other intangible assets, at cost (2)
|
1,187.5
|
|
|
1,179.3
|
|
||
Less: Accumulated amortization
|
(1,009.4
|
)
|
|
(972.2
|
)
|
||
Other intangible assets, net
|
$
|
178.1
|
|
|
$
|
207.1
|
|
(1)
|
Included in “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets.
|
(2)
|
Includes the effects of foreign currency translation.
|
Balance as of January 31, 2020
|
$
|
2,594.2
|
|
Less: accumulated impairment losses as of January 31, 2020
|
(149.2
|
)
|
|
Net balance as of January 31, 2020
|
2,445.0
|
|
|
Effect of foreign currency translation
|
14.1
|
|
|
Balance as of July 31, 2020
|
$
|
2,459.1
|
|
(in millions)
|
July 31, 2020
|
|
January 31, 2020
|
||||
Computer hardware, at cost
|
$
|
158.8
|
|
|
$
|
159.7
|
|
Computer software, at cost
|
65.6
|
|
|
64.0
|
|
||
Leasehold improvements, land and buildings, at cost
|
311.5
|
|
|
284.0
|
|
||
Furniture and equipment, at cost
|
77.9
|
|
|
69.0
|
|
||
|
613.8
|
|
|
576.7
|
|
||
Less: Accumulated depreciation
|
(436.0
|
)
|
|
(415.0
|
)
|
||
Computer software, hardware, leasehold improvements, furniture and equipment, net
|
$
|
177.8
|
|
|
$
|
161.7
|
|
(in millions)
|
Aggregate Principal Amount
|
|
Fair value
|
||||
2012 Notes
|
$
|
350.0
|
|
|
$
|
369.6
|
|
$300 million 2015 Notes
|
300.0
|
|
|
342.1
|
|
||
2017 Notes
|
500.0
|
|
|
577.2
|
|
||
2020 Notes
|
500.0
|
|
|
562.0
|
|
Fiscal year ending
|
|
||
2021 (remainder)
|
$
|
—
|
|
2022
|
—
|
|
|
2023
|
350.0
|
|
|
2024
|
—
|
|
|
2025
|
—
|
|
|
Thereafter
|
1,300.0
|
|
|
Total principal outstanding
|
$
|
1,650.0
|
|
|
Three Months Ended July 31, 2020
|
||||||||||||||||||||||
(in millions)
|
Cost of subscription and maintenance revenue
|
|
Cost of other revenue
|
|
Marketing and sales
|
|
Research and development
|
|
General and administrative
|
|
Total
|
||||||||||||
Operating lease cost
|
$
|
1.7
|
|
|
$
|
0.4
|
|
|
$
|
10.6
|
|
|
$
|
7.8
|
|
|
$
|
4.2
|
|
|
$
|
24.7
|
|
Variable lease cost
|
0.1
|
|
|
—
|
|
|
1.0
|
|
|
0.7
|
|
|
0.5
|
|
|
2.3
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended July 31, 2020
|
||||||||||||||||||||||
(in millions)
|
Cost of subscription and maintenance revenue
|
|
Cost of other revenue
|
|
Marketing and sales
|
|
Research and development
|
|
General and administrative
|
|
Total
|
||||||||||||
Operating lease cost
|
$
|
3.7
|
|
|
$
|
1.1
|
|
|
$
|
22.1
|
|
|
$
|
15.7
|
|
|
$
|
7.6
|
|
|
$
|
50.2
|
|
Variable lease cost
|
0.4
|
|
|
0.1
|
|
|
2.5
|
|
|
1.8
|
|
|
0.9
|
|
|
5.7
|
|
|
Three Months Ended July 31, 2019
|
||||||||||||||||||||||
(in millions)
|
Cost of subscription and maintenance revenue
|
|
Cost of other revenue
|
|
Marketing and sales
|
|
Research and development
|
|
General and administrative
|
|
Total
|
||||||||||||
Operating lease cost
|
$
|
1.6
|
|
|
$
|
0.7
|
|
|
$
|
9.6
|
|
|
$
|
6.8
|
|
|
$
|
3.0
|
|
|
$
|
21.7
|
|
Variable lease cost
|
0.3
|
|
|
—
|
|
|
1.5
|
|
|
1.1
|
|
|
0.5
|
|
|
3.4
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended July 31, 2019
|
||||||||||||||||||||||
(in millions)
|
Cost of subscription and maintenance revenue
|
|
Cost of other revenue
|
|
Marketing and sales
|
|
Research and development
|
|
General and administrative
|
|
Total
|
||||||||||||
Operating lease cost
|
$
|
3.2
|
|
|
$
|
1.1
|
|
|
$
|
18.4
|
|
|
$
|
13.5
|
|
|
$
|
5.8
|
|
|
$
|
42.0
|
|
Variable lease cost
|
0.5
|
|
|
0.1
|
|
|
2.8
|
|
|
2.1
|
|
|
0.9
|
|
|
6.4
|
|
|
Six Months Ended July 31,
|
||||||
(in millions)
|
2020
|
|
2019
|
||||
Cash paid for operating leases included in operating cash flows (1)
|
$
|
47.6
|
|
|
$
|
45.9
|
|
Non-cash operating lease liabilities arising from obtaining operating lease right-of-use assets
|
$
|
18.4
|
|
|
$
|
53.0
|
|
Fiscal year ending
|
|
||
2021 (remainder)
|
$
|
29.9
|
|
2022
|
89.3
|
|
|
2023
|
88.6
|
|
|
2024
|
73.8
|
|
|
2025
|
54.1
|
|
|
Thereafter
|
171.4
|
|
|
|
507.1
|
|
|
Less imputed interest
|
(60.0
|
)
|
|
Present value of operating lease liabilities
|
$
|
447.1
|
|
(in millions, except per share data)
|
Common stock and additional paid-in capital
|
|
Accumulated other comprehensive loss
|
|
Accumulated deficit
|
|
Total stockholders' equity (deficit)
|
|||||||||||
Shares
|
|
Amount
|
|
|||||||||||||||
Balances, January 31, 2020
|
219.4
|
|
|
$
|
2,317.0
|
|
|
$
|
(160.3
|
)
|
|
$
|
(2,295.8
|
)
|
|
$
|
(139.1
|
)
|
Common shares issued under stock plans
|
1.0
|
|
|
24.3
|
|
|
—
|
|
|
—
|
|
|
24.3
|
|
||||
Stock-based compensation expense
|
—
|
|
|
88.2
|
|
|
—
|
|
|
—
|
|
|
88.2
|
|
||||
Settlement of liability-classified restricted stock units
|
—
|
|
|
28.7
|
|
|
—
|
|
|
—
|
|
|
28.7
|
|
||||
Post-combination expense related to equity awards assumed
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
66.5
|
|
|
66.5
|
|
||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
(18.8
|
)
|
|
—
|
|
|
(18.8
|
)
|
||||
Repurchase and retirement of common shares
|
(1.2
|
)
|
|
(57.0
|
)
|
|
—
|
|
|
(132.0
|
)
|
|
(189.0
|
)
|
||||
Balances, April 30, 2020
|
219.2
|
|
|
2,401.3
|
|
|
(179.1
|
)
|
|
(2,361.3
|
)
|
|
(139.1
|
)
|
||||
Common shares issued under stock plans
|
0.2
|
|
|
(4.6
|
)
|
|
—
|
|
|
—
|
|
|
(4.6
|
)
|
||||
Stock-based compensation expense
|
—
|
|
|
95.9
|
|
|
—
|
|
|
—
|
|
|
95.9
|
|
||||
Post-combination expense related to equity awards assumed
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
98.2
|
|
|
98.2
|
|
||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
24.6
|
|
|
—
|
|
|
24.6
|
|
||||
Repurchase and retirement of common shares (1)
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(7.8
|
)
|
|
(7.8
|
)
|
||||
Balances, July 31, 2020
|
219.3
|
|
|
$
|
2,492.7
|
|
|
$
|
(154.5
|
)
|
|
$
|
(2,270.9
|
)
|
|
$
|
67.3
|
|
(1)
|
During the three and six months ended July 31, 2020, Autodesk repurchased 0.1 million shares and 1.3 million shares at an average repurchase price of $216.84 and $155.20 per share. At July 31, 2020, 13.5 million shares remained available for repurchase under the repurchase program approved by the Board of Directors.
|
|
Common stock and additional paid-in capital
|
|
Accumulated other comprehensive loss
|
|
Accumulated deficit
|
|
Total stockholders' deficit
|
|||||||||||
Shares
|
|
Amount
|
|
|||||||||||||||
Balances, January 31, 2019
|
219.4
|
|
|
$
|
2,071.5
|
|
|
$
|
(135.0
|
)
|
|
$
|
(2,147.4
|
)
|
|
$
|
(210.9
|
)
|
Common shares issued under stock plans
|
0.8
|
|
|
21.1
|
|
|
—
|
|
|
—
|
|
|
21.1
|
|
||||
Stock-based compensation expense
|
—
|
|
|
75.2
|
|
|
—
|
|
|
—
|
|
|
75.2
|
|
||||
Post combination expense related to assumed equity
|
—
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
||||
Cumulative effect of accounting changes
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
(0.7
|
)
|
||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(24.2
|
)
|
|
(24.2
|
)
|
||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
(6.6
|
)
|
|
—
|
|
|
(6.6
|
)
|
||||
Repurchase and retirement of common shares
|
(0.6
|
)
|
|
(45.5
|
)
|
|
—
|
|
|
(54.5
|
)
|
|
(100.0
|
)
|
||||
Balances, April 30, 2019
|
219.6
|
|
|
2,123.1
|
|
|
(141.6
|
)
|
|
(2,226.8
|
)
|
|
(245.3
|
)
|
||||
Common shares issued under stock plans
|
0.2
|
|
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
|
(2.6
|
)
|
||||
Stock-based compensation expense
|
—
|
|
|
82.9
|
|
|
—
|
|
|
—
|
|
|
82.9
|
|
||||
Post combination expense related to assumed equity
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
40.2
|
|
|
40.2
|
|
||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
(29.1
|
)
|
|
—
|
|
|
(29.1
|
)
|
||||
Repurchase and retirement of common shares (1)
|
(0.3
|
)
|
|
(2.8
|
)
|
|
—
|
|
|
(37.7
|
)
|
|
(40.5
|
)
|
||||
Balances, July 31, 2019
|
219.5
|
|
|
$
|
2,200.7
|
|
|
$
|
(170.7
|
)
|
|
$
|
(2,224.3
|
)
|
|
$
|
(194.3
|
)
|
(1)
|
During the three and six months ended July 31, 2019, Autodesk repurchased 0.3 million shares and 0.9 million shares at an average repurchase price of $159.54 and $168.11 per share. At July 31, 2019, 16.6 million shares remained available for repurchase under the repurchase program approved by the Board of Directors.
|
(in millions)
|
Net Unrealized Gains (Losses) on Derivative Instruments
|
|
Net Unrealized Gains (Losses) on Available-for-Sale Debt Securities
|
|
Defined Benefit Pension Components
|
|
Foreign Currency Translation Adjustments
|
|
Total
|
||||||||||
Balances, January 31, 2020
|
$
|
8.4
|
|
|
$
|
4.7
|
|
|
$
|
(22.8
|
)
|
|
$
|
(150.6
|
)
|
|
$
|
(160.3
|
)
|
Other comprehensive (loss) income before reclassifications
|
(15.4
|
)
|
|
1.1
|
|
|
—
|
|
|
20.7
|
|
|
6.4
|
|
|||||
Pre-tax (gains) losses reclassified from accumulated other comprehensive loss
|
(2.0
|
)
|
|
0.1
|
|
|
(0.3
|
)
|
|
—
|
|
|
(2.2
|
)
|
|||||
Tax effects
|
1.9
|
|
|
0.1
|
|
|
—
|
|
|
(0.4
|
)
|
|
1.6
|
|
|||||
Net current period other comprehensive (loss) income
|
(15.5
|
)
|
|
1.3
|
|
|
(0.3
|
)
|
|
20.3
|
|
|
5.8
|
|
|||||
Balances, July 31, 2020
|
$
|
(7.1
|
)
|
|
$
|
6.0
|
|
|
$
|
(23.1
|
)
|
|
$
|
(130.3
|
)
|
|
$
|
(154.5
|
)
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
(in millions, except per share data)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
98.2
|
|
|
$
|
40.2
|
|
|
$
|
164.7
|
|
|
$
|
16.0
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Denominator for basic net income per share—weighted average shares
|
219.2
|
|
|
219.6
|
|
|
219.2
|
|
|
219.6
|
|
||||
Effect of dilutive securities
|
3.0
|
|
|
2.8
|
|
|
2.8
|
|
|
2.7
|
|
||||
Denominator for dilutive net income per share
|
222.2
|
|
|
222.4
|
|
|
222.0
|
|
|
222.3
|
|
||||
Basic net income per share
|
$
|
0.45
|
|
|
$
|
0.18
|
|
|
$
|
0.75
|
|
|
$
|
0.07
|
|
Diluted net income per share
|
$
|
0.44
|
|
|
$
|
0.18
|
|
|
$
|
0.74
|
|
|
$
|
0.07
|
|
(in millions)
|
July 31, 2020
|
|
January 31, 2020
|
||||
Long-lived assets (1):
|
|
|
|
||||
Americas
|
|
|
|
||||
U.S.
|
$
|
430.3
|
|
|
$
|
434.2
|
|
Other Americas
|
31.3
|
|
|
33.2
|
|
||
Total Americas
|
461.6
|
|
|
467.4
|
|
||
Europe, Middle East, and Africa
|
82.4
|
|
|
75.8
|
|
||
Asia Pacific
|
50.0
|
|
|
57.3
|
|
||
Total long-lived assets
|
$
|
594.0
|
|
|
$
|
600.5
|
|
(1)
|
Long-lived assets exclude deferred tax assets, marketable securities, goodwill, and other intangible assets.
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Total net revenue increased 15% and 17% to $913.1 million and $1,798.8 million for the three and six months ended July 31, 2020, respectively, compared to the same periods in the prior fiscal year.
|
•
|
Recurring revenue as a percentage of net revenue was 98% for both the three and six months ended July 31, 2020, compared to 96% for both periods in the prior fiscal year.
|
•
|
Net revenue retention rate ("NR3") was within the range of 100% and 110% as of July 31, 2020, and within the range of 110% and 120% as of July 31, 2019.
|
•
|
Deferred revenue was $2.88 billion, a decrease of 4% compared to the fourth quarter in the prior fiscal year.
|
•
|
Remaining performance obligations (short-term and long-term deferred revenue plus unbilled deferred revenue) ("RPO") was $3.35 billion, a decrease of 6% compared to the fourth quarter in the prior fiscal year.
|
•
|
Current remaining performance obligations were $2.31 billion, a decrease of 2% compared to the fourth quarter in the prior fiscal year.
|
|
Three Months Ended July 31, 2020
|
|
Change compared to
prior fiscal year |
|
Three Months Ended July 31, 2019
|
|||||||||
(In millions, except percentage data)
|
|
$
|
|
%
|
|
|||||||||
Recurring revenue (1)
|
$
|
892.4
|
|
|
$
|
125.2
|
|
|
16
|
%
|
|
$
|
767.2
|
|
As a percentage of net revenue
|
98
|
%
|
|
N/A
|
|
|
N/A
|
|
|
96
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
|
Six Months Ended July 31, 2020
|
|
Change compared to
prior fiscal year |
|
Six Months Ended July 31, 2019
|
|||||||||
|
|
$
|
|
%
|
|
|||||||||
Recurring Revenue (1)
|
$
|
1,757.5
|
|
|
$
|
282.5
|
|
|
19
|
%
|
|
$
|
1,475.0
|
|
As a percentage of net revenue
|
98
|
%
|
|
N/A
|
|
|
N/A
|
|
|
96
|
%
|
(1)
|
The acquisition of a business may cause variability in the comparison of recurring revenue in this table above and recurring revenue derived from the revenue reported in the Condensed Consolidated Statements of Operations.
|
|
Three Months Ended July 31, 2020
|
|
Six Months Ended July 31, 2020
|
||||||||||||
|
Percent change compared to
prior fiscal year |
|
Constant Currency percent change compared to
prior fiscal year (1) |
|
Positive/Negative/Neutral impact from foreign exchange rate changes
|
|
Percent change compared to
prior fiscal year |
|
Constant Currency percent change compared to
prior fiscal year (1) |
|
Positive/Negative/Neutral impact from foreign exchange rate changes
|
||||
Net revenue
|
15
|
%
|
|
16
|
%
|
|
Negative
|
|
17
|
%
|
|
19
|
%
|
|
Negative
|
Total spend
|
6
|
%
|
|
7
|
%
|
|
Positive
|
|
6
|
%
|
|
7
|
%
|
|
Positive
|
(1)
|
Please refer to the Glossary of Terms for the definitions of our constant currency growth rates.
|
(in millions)
|
July 31, 2020
|
|
January 31, 2020
|
||||
Deferred revenue
|
$
|
2,878.9
|
|
|
$
|
3,007.1
|
|
Unbilled deferred revenue
|
468.5
|
|
|
549.6
|
|
||
RPO
|
$
|
3,347.4
|
|
|
$
|
3,556.7
|
|
(in millions)
|
July 31, 2020
|
|
January 31, 2020
|
||||
Current RPO
|
$
|
2,310.7
|
|
|
$
|
2,368.6
|
|
Non-current RPO
|
1,036.7
|
|
|
1,188.1
|
|
||
RPO
|
$
|
3,347.4
|
|
|
$
|
3,556.7
|
|
|
Three Months Ended
|
|
Change Compared to Prior Fiscal Year
|
|
Three Months Ended
|
|
Management comments
|
|||||||||
(In millions, except percentages)
|
July 31, 2020
|
$
|
|
%
|
|
July 31, 2019
|
|
|||||||||
Net Revenue:
|
|
|
|
|
|
|
|
|
|
|||||||
Subscription
|
$
|
841.2
|
|
|
$
|
177.5
|
|
|
27
|
%
|
|
$
|
663.7
|
|
|
Increase due to growth across all subscription types, led by product subscription renewal revenue, which benefited from the success of the M2S program. Also contributing to the growth was an increase in revenue from new product subscriptions and EBA offerings.
|
Maintenance (1)
|
51.2
|
|
|
(52.3
|
)
|
|
(51
|
)%
|
|
103.5
|
|
|
Decrease primarily due to the migration of maintenance plan subscriptions to subscription plan subscriptions with the M2S program.
|
|||
Total subscription and maintenance revenue
|
892.4
|
|
|
125.2
|
|
|
16
|
%
|
|
767.2
|
|
|
|
|||
Other
|
20.7
|
|
|
(8.9
|
)
|
|
(30
|
)%
|
|
29.6
|
|
|
|
|||
|
$
|
913.1
|
|
|
$
|
116.3
|
|
|
15
|
%
|
|
$
|
796.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Six Months Ended
|
|
Change compared to
prior fiscal year |
|
Six Months Ended
|
|
Management Comments
|
|||||||||
|
July 31, 2020
|
$
|
|
%
|
|
July 31, 2019
|
|
|||||||||
Net Revenue:
|
|
|
|
|
|
|
|
|
|
|||||||
Subscription
|
$
|
1,644.2
|
|
|
$
|
384.7
|
|
|
31
|
%
|
|
$
|
1,259.5
|
|
|
Increase due to growth across all subscription types, led by product subscription renewal revenue, which benefited from the success of the M2S program. Also contributing to the growth was an increase in revenue from new product subscriptions and EBA offerings.
|
Maintenance (1)
|
113.3
|
|
|
(102.2
|
)
|
|
(47
|
)%
|
|
215.5
|
|
|
Decrease primarily due to the migration of maintenance plan subscriptions to subscription plan subscriptions with the M2S program.
|
|||
Total subscription and maintenance revenue
|
1,757.5
|
|
|
282.5
|
|
|
19
|
%
|
|
1,475.0
|
|
|
|
|||
Other
|
41.3
|
|
|
(16.0
|
)
|
|
(28
|
)%
|
|
57.3
|
|
|
|
|||
|
$
|
1,798.8
|
|
|
$
|
266.5
|
|
|
17
|
%
|
|
$
|
1,532.3
|
|
|
|
(1)
|
We expect maintenance revenue will slowly decline; however, the rate of decline will vary based on the number of renewals, the renewal rate, and our ability to incentivize maintenance plan customers to switch over to subscription plan offerings.
|
|
Three Months Ended
|
|
Change compared to
prior fiscal year |
|
Three Months Ended
|
|
Management comments
|
|||||||||
(In millions, except percentages)
|
July 31, 2020
|
$
|
|
%
|
|
July 31, 2019
|
|
|||||||||
Net Revenue by Product Family:
|
|
|
|
|
|
|
|
|
|
|||||||
AEC
|
$
|
397.0
|
|
|
$
|
62.8
|
|
|
19
|
%
|
|
$
|
334.2
|
|
|
Up due to increases in revenue from AEC Collections, EBAs, BIM 360, and PlanGrid.
|
AutoCAD and AutoCAD LT
|
271.9
|
|
|
40.6
|
|
|
18
|
%
|
|
231.3
|
|
|
Up due to increases in revenue from both AutoCAD and AutoCAD LT.
|
|||
MFG
|
185.5
|
|
|
10.9
|
|
|
6
|
%
|
|
174.6
|
|
|
Up due to increases in revenue from MFG Collections, EBAs and Fusion360.
|
|||
M&E
|
53.3
|
|
|
2.5
|
|
|
5
|
%
|
|
50.8
|
|
|
Up due to increases in revenue from M&E Collections, Maya, and 3DS Max.
|
|||
Other
|
5.4
|
|
|
(0.5
|
)
|
|
(8
|
)%
|
|
5.9
|
|
|
|
|||
|
$
|
913.1
|
|
|
$
|
116.3
|
|
|
15
|
%
|
|
$
|
796.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Six Months Ended
|
|
Change compared to
prior fiscal year |
|
Six Months Ended
|
|
|
|||||||||
|
July 31, 2020
|
$
|
|
%
|
|
July 31, 2019
|
|
|
||||||||
Net Revenue by Product Family:
|
|
|
|
|
|
|
|
|
|
|||||||
AEC
|
$
|
779.7
|
|
|
$
|
141.2
|
|
|
22
|
%
|
|
$
|
638.5
|
|
|
Up due to increases in revenue from AEC Collections, EBAs, BIM 360, and PlanGrid.
|
ACAD and AutoCAD LT
|
534.1
|
|
|
89.6
|
|
|
20
|
%
|
|
444.5
|
|
|
Up due to increases in revenue from both AutoCAD and AutoCAD LT.
|
|||
MFG
|
368.4
|
|
|
26.3
|
|
|
8
|
%
|
|
342.1
|
|
|
Up due to increases in revenue from MFG Collections, EBAs, and Fusion360.
|
|||
M&E
|
105.9
|
|
|
9.6
|
|
|
10
|
%
|
|
96.3
|
|
|
Up due to increases in revenue from M&E Collections, Maya, 3DS Max and EBAs.
|
|||
Other
|
10.7
|
|
|
(0.2
|
)
|
|
(2
|
)%
|
|
10.9
|
|
|
|
|||
|
$
|
1,798.8
|
|
|
$
|
266.5
|
|
|
17
|
%
|
|
$
|
1,532.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended July 31, 2020
|
|
Change compared to
prior fiscal year |
|
Constant currency change compared to prior fiscal year
|
|
Three Months Ended July 31, 2019
|
||||||||||
(In millions, except percentages)
|
|
$
|
|
%
|
|
%
|
|
||||||||||
Net Revenue:
|
|
|
|
|
|
|
|
|
|
||||||||
Americas
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
$
|
309.5
|
|
|
$
|
41.6
|
|
|
16
|
%
|
|
*
|
|
|
$
|
267.9
|
|
Other Americas
|
62.0
|
|
|
4.0
|
|
|
7
|
%
|
|
*
|
|
|
58.0
|
|
|||
Total Americas
|
371.5
|
|
|
45.6
|
|
|
14
|
%
|
|
14
|
%
|
|
325.9
|
|
|||
EMEA
|
354.7
|
|
|
38.5
|
|
|
12
|
%
|
|
16
|
%
|
|
316.2
|
|
|||
APAC
|
186.9
|
|
|
32.2
|
|
|
21
|
%
|
|
21
|
%
|
|
154.7
|
|
|||
Total Net Revenue
|
$
|
913.1
|
|
|
$
|
116.3
|
|
|
15
|
%
|
|
16
|
%
|
|
$
|
796.8
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Emerging Economies
|
$
|
113.7
|
|
|
$
|
16.3
|
|
|
17
|
%
|
|
17
|
%
|
|
$
|
97.4
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended July 31, 2020
|
|
Change compared to
prior fiscal year |
|
Constant currency change compared to prior fiscal year
|
|
Six Months Ended July 31, 2019
|
||||||||||
(In millions, except percentages)
|
|
$
|
|
%
|
|
%
|
|
||||||||||
Net Revenue:
|
|
|
|
|
|
|
|
|
|
||||||||
Americas
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
$
|
610.1
|
|
|
$
|
93.1
|
|
|
18
|
%
|
|
*
|
|
|
$
|
517.0
|
|
Other Americas
|
123.6
|
|
|
18.9
|
|
|
18
|
%
|
|
*
|
|
|
104.7
|
|
|||
Total Americas
|
733.7
|
|
|
112
|
|
|
18
|
%
|
|
18
|
%
|
|
621.7
|
|
|||
EMEA
|
699.5
|
|
|
86.1
|
|
|
14
|
%
|
|
18
|
%
|
|
613.4
|
|
|||
APAC
|
365.6
|
|
|
68.4
|
|
|
23
|
%
|
|
23
|
%
|
|
297.2
|
|
|||
Total Net Revenue
|
$
|
1,798.8
|
|
|
$
|
266.5
|
|
|
17
|
%
|
|
19
|
%
|
|
$
|
1,532.3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Emerging Economies
|
$
|
225.1
|
|
|
$
|
39.8
|
|
|
21
|
%
|
|
22
|
%
|
|
$
|
185.3
|
|
|
Three Months Ended
|
|
Change compared to
prior fiscal year |
|
Three Months Ended
|
|
Management Comments
|
|||||||||
(In millions, except percentages)
|
July 31, 2020
|
$
|
|
%
|
|
July 31, 2019
|
|
|||||||||
Net Revenue by Sales Channel:
|
|
|
|
|
|
|
|
|
|
|||||||
Indirect
|
$
|
639.3
|
|
|
$
|
79.1
|
|
|
14
|
%
|
|
$
|
560.2
|
|
|
Up due to an increase in subscription revenue offset by lower maintenance plan subscriptions as we continue to migrate customers to subscriptions through the M2S program.
|
Direct
|
273.8
|
|
|
37.2
|
|
|
16
|
%
|
|
236.6
|
|
|
Up due to an increase in EBAs and our online Autodesk branded store.
|
|||
Total Net Revenue
|
$
|
913.1
|
|
|
$
|
116.3
|
|
|
15
|
%
|
|
$
|
796.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Six Months Ended
|
|
Change compared to
prior fiscal year |
|
Six Months Ended
|
|
Management Comments
|
|||||||||
|
July 31, 2020
|
$
|
|
%
|
|
July 31, 2019
|
|
|||||||||
Net Revenue by Sales Channel:
|
|
|
|
|
|
|
|
|
|
|||||||
Indirect
|
$
|
1,262.7
|
|
|
$
|
186.1
|
|
|
17
|
%
|
|
$
|
1,076.6
|
|
|
Up due to an increase in subscription revenue offset by lower maintenance plan subscriptions as we continue to migrate customers to subscriptions through the M2S program.
|
Direct
|
536.1
|
|
|
80.4
|
|
|
18
|
%
|
|
455.7
|
|
|
Up due to an increase in EBAs and our online Autodesk branded store.
|
|||
Total Net Revenue
|
$
|
1,798.8
|
|
|
$
|
266.5
|
|
|
17
|
%
|
|
$
|
1,532.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Change compared to
prior fiscal year |
|
Three Months Ended
|
|
Management comments
|
|||||||||
(In millions, except percentages)
|
July 31, 2020
|
$
|
|
%
|
|
July 31, 2019
|
|
|||||||||
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|||||||
Subscription and maintenance
|
$
|
58.5
|
|
|
$
|
5.5
|
|
|
10
|
%
|
|
$
|
53.0
|
|
|
Increase primarily due to an increase in cloud hosting costs as well as an increase in stock-based compensation expense partially offset by lower travel and entertainment expenses.
|
Other
|
15.0
|
|
|
(2.9
|
)
|
|
(16
|
)%
|
|
17.9
|
|
|
Decrease primarily due to a decrease in other revenue as a result of lower consulting service revenue as well as decrease in travel and entertainment expenses.
|
|||
Amortization of developed technology
|
7.4
|
|
|
(1.2
|
)
|
|
(14
|
)%
|
|
8.6
|
|
|
Decrease primarily due to previously acquired developed technologies continuing to become fully amortized partially offset by amortization from recently acquired developed technology.
|
|||
Total cost of revenue
|
$
|
80.9
|
|
|
$
|
1.4
|
|
|
2
|
%
|
|
$
|
79.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Marketing and sales
|
$
|
350.9
|
|
|
$
|
34.1
|
|
|
11
|
%
|
|
$
|
316.8
|
|
|
Increase primarily due to an increase in employee-related costs driven by higher headcount as well as an increase in stock-based compensation expense partially offset by lower travel and entertainment expenses.
|
Research and development
|
232.5
|
|
|
17.1
|
|
|
8
|
%
|
|
215.4
|
|
|
Increase primarily due to an increase in employee-related costs driven by higher headcount as well as an increase in stock-based compensation expense partially offset by lower travel and entertainment expenses.
|
|||
General and administrative
|
93.2
|
|
|
(8.2
|
)
|
|
(8
|
)%
|
|
101.4
|
|
|
Decrease primarily due to a decrease in stock-based compensation expense and lower travel and entertainment expenses partially offset by an increase in employee-related costs driven by higher headcount.
|
|||
Amortization of purchased intangibles
|
9.5
|
|
|
(0.2
|
)
|
|
(2
|
)%
|
|
9.7
|
|
|
Decrease as previously acquired purchased intangibles continue to become fully amortized.
|
|||
Restructuring and other exit costs, net
|
—
|
|
|
(0.2
|
)
|
|
*
|
|
|
0.2
|
|
|
|
|||
Total operating expenses
|
$
|
686.1
|
|
|
$
|
42.6
|
|
|
7
|
%
|
|
$
|
643.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Six Months Ended
|
|
Change compared to
prior fiscal year |
|
Six Months Ended
|
|
Management comments
|
|||||||||
|
July 31, 2020
|
$
|
|
%
|
|
July 31, 2019
|
|
|||||||||
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|||||||
Subscription and maintenance
|
$
|
115.9
|
|
|
$
|
3.2
|
|
|
3
|
%
|
|
$
|
112.7
|
|
|
Increase primarily due to an increase in cloud hosting costs partially offset by lower travel and entertainment expenses.
|
Other
|
32.1
|
|
|
0.4
|
|
|
1
|
%
|
|
31.7
|
|
|
Increase primarily due to an increase in stock-based compensation expense as well as employee related costs partially offset by a decrease in travel and entertainment expense.
|
|||
Amortization of developed technology
|
14.8
|
|
|
(3.0
|
)
|
|
(17
|
)%
|
|
17.8
|
|
|
Decrease primarily due to previously acquired developed technologies continuing to become fully amortized partially offset by amortization from recently acquired developed technology.
|
Total cost of revenue
|
$
|
162.8
|
|
|
$
|
0.6
|
|
|
—
|
%
|
|
$
|
162.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|||||||
Marketing and sales
|
$
|
692.2
|
|
|
$
|
62.1
|
|
|
10
|
%
|
|
$
|
630.1
|
|
|
Increase primarily due to increased employee-related costs driven by higher headcount as well as an increase in stock-based compensation expense offset by a decrease in travel and entertainment expenses.
|
Research and development
|
449.9
|
|
|
28.9
|
|
|
7
|
%
|
|
421.0
|
|
|
Increase primarily due to increased employee-related costs driven by higher headcount as well as an increase in stock-based compensation expense offset by a decrease in travel and entertainment expenses.
|
|||
General and administrative
|
198.0
|
|
|
(2.5
|
)
|
|
(1
|
)%
|
|
200.5
|
|
|
Decrease primarily due to lower stock-based compensation expense and a decrease in travel and entertainment expenses offset by increased employee-related costs driven by higher headcount.
|
|||
Amortization of purchased intangibles
|
19.2
|
|
|
(0.3
|
)
|
|
(2
|
)%
|
|
19.5
|
|
|
Decrease as previously acquired purchased intangibles continue to become fully amortized.
|
|||
Restructuring and other exit costs, net
|
—
|
|
|
(0.4
|
)
|
|
*
|
|
|
0.4
|
|
|
|
|||
Total operating expenses
|
$
|
1,359.3
|
|
|
$
|
87.8
|
|
|
7
|
%
|
|
$
|
1,271.5
|
|
|
|
|
Absolute dollar impact
|
|
Percent of net revenue impact
|
Cost of revenue
|
Increase
|
|
Flat
|
Marketing and sales
|
Increase
|
|
Flat
|
Research and development
|
Increase
|
|
Flat
|
General and administrative
|
Decrease
|
|
Decrease
|
Amortization of purchased intangibles
|
Decrease
|
|
Flat
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
(in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Interest and investment expense, net
|
$
|
(8.0
|
)
|
|
$
|
(15.4
|
)
|
|
$
|
(30.3
|
)
|
|
$
|
(28.4
|
)
|
Gain on foreign currency
|
4.7
|
|
|
2.3
|
|
|
2.9
|
|
|
3.0
|
|
||||
(Loss) gain on non-marketable equity securities, net
|
(14.3
|
)
|
|
2.2
|
|
|
(30.9
|
)
|
|
(2.8
|
)
|
||||
Other income
|
0.5
|
|
|
3.6
|
|
|
1.1
|
|
|
4.7
|
|
||||
Interest and other expense, net
|
$
|
(17.1
|
)
|
|
$
|
(7.3
|
)
|
|
$
|
(57.2
|
)
|
|
$
|
(23.5
|
)
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(Unaudited)
|
||||||||||||||
Gross profit
|
$
|
832.2
|
|
|
$
|
717.3
|
|
|
$
|
1,636.0
|
|
|
$
|
1,370.1
|
|
Non-GAAP gross profit
|
$
|
845.5
|
|
|
$
|
730.7
|
|
|
$
|
1,662.0
|
|
|
$
|
1,397.6
|
|
Gross margin
|
91
|
%
|
|
90
|
%
|
|
91
|
%
|
|
89
|
%
|
||||
Non-GAAP gross margin
|
93
|
%
|
|
92
|
%
|
|
92
|
%
|
|
91
|
%
|
||||
Income from operations
|
$
|
146.1
|
|
|
$
|
73.8
|
|
|
$
|
276.7
|
|
|
$
|
98.6
|
|
Non-GAAP income from operations
|
$
|
262.4
|
|
|
$
|
186.5
|
|
|
$
|
510.2
|
|
|
$
|
318.4
|
|
Operating margin
|
16
|
%
|
|
9
|
%
|
|
15
|
%
|
|
6
|
%
|
||||
Non-GAAP operating margin
|
29
|
%
|
|
23
|
%
|
|
28
|
%
|
|
21
|
%
|
||||
Net income
|
$
|
98.2
|
|
|
$
|
40.2
|
|
|
$
|
164.7
|
|
|
$
|
16.0
|
|
Non-GAAP net income
|
$
|
218.0
|
|
|
$
|
145.1
|
|
|
$
|
406.4
|
|
|
$
|
244.1
|
|
GAAP diluted net income per share
|
$
|
0.44
|
|
|
$
|
0.18
|
|
|
$
|
0.74
|
|
|
$
|
0.07
|
|
Non-GAAP diluted net income per share
|
$
|
0.98
|
|
|
$
|
0.65
|
|
|
$
|
1.83
|
|
|
$
|
1.10
|
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(Unaudited)
|
||||||||||||||
Gross profit
|
$
|
832.2
|
|
|
$
|
717.3
|
|
|
$
|
1,636.0
|
|
|
$
|
1,370.1
|
|
Stock-based compensation expense
|
5.8
|
|
|
4.8
|
|
|
10.9
|
|
|
9.7
|
|
||||
Amortization of developed technologies
|
7.4
|
|
|
8.6
|
|
|
14.8
|
|
|
17.8
|
|
||||
Acquisition-related costs
|
0.1
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
||||
Non-GAAP gross profit
|
$
|
845.5
|
|
|
$
|
730.7
|
|
|
$
|
1,662.0
|
|
|
$
|
1,397.6
|
|
Gross margin
|
91
|
%
|
|
90
|
%
|
|
91
|
%
|
|
89
|
%
|
||||
Stock-based compensation expense
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
||||
Amortization of developed technologies
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
||||
Non-GAAP gross margin (1)
|
93
|
%
|
|
92
|
%
|
|
92
|
%
|
|
91
|
%
|
||||
Income from operations
|
$
|
146.1
|
|
|
$
|
73.8
|
|
|
$
|
276.7
|
|
|
$
|
98.6
|
|
Stock-based compensation expense
|
95.9
|
|
|
88.2
|
|
|
194.1
|
|
|
163.4
|
|
||||
Amortization of developed technologies
|
7.4
|
|
|
8.6
|
|
|
14.8
|
|
|
17.8
|
|
||||
Amortization of purchased intangibles
|
9.5
|
|
|
9.7
|
|
|
19.2
|
|
|
19.5
|
|
||||
Acquisition-related costs
|
3.5
|
|
|
6.0
|
|
|
5.4
|
|
|
18.7
|
|
||||
Restructuring and other exit costs, net
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.4
|
|
||||
Non-GAAP income from operations
|
$
|
262.4
|
|
|
$
|
186.5
|
|
|
$
|
510.2
|
|
|
$
|
318.4
|
|
Operating margin
|
16
|
%
|
|
9
|
%
|
|
15
|
%
|
|
6
|
%
|
||||
Stock-based compensation expense
|
11
|
%
|
|
11
|
%
|
|
11
|
%
|
|
11
|
%
|
||||
Amortization of developed technologies
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
||||
Amortization of purchased intangibles
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
||||
Acquisition-related costs
|
—
|
%
|
|
1
|
%
|
|
—
|
%
|
|
1
|
%
|
||||
Non-GAAP operating margin (1)
|
29
|
%
|
|
23
|
%
|
|
28
|
%
|
|
21
|
%
|
||||
Net income
|
$
|
98.2
|
|
|
$
|
40.2
|
|
|
$
|
164.7
|
|
|
$
|
16.0
|
|
Stock-based compensation expense
|
95.9
|
|
|
88.2
|
|
|
194.1
|
|
|
163.4
|
|
||||
Amortization of developed technologies
|
7.4
|
|
|
8.6
|
|
|
14.8
|
|
|
17.8
|
|
||||
Amortization of purchased intangibles
|
9.5
|
|
|
9.7
|
|
|
19.2
|
|
|
19.5
|
|
||||
Acquisition-related costs
|
3.5
|
|
|
6.0
|
|
|
5.4
|
|
|
18.7
|
|
||||
Restructuring and other exit costs, net
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.4
|
|
||||
Loss (gain) on strategic investments and dispositions, net
|
14.3
|
|
|
(2.2
|
)
|
|
30.9
|
|
|
2.8
|
|
||||
Discrete tax benefit items
|
0.6
|
|
|
3.3
|
|
|
1.1
|
|
|
1.0
|
|
||||
Income tax effect of non-GAAP adjustments
|
(11.4
|
)
|
|
(8.9
|
)
|
|
(23.8
|
)
|
|
4.5
|
|
||||
Non-GAAP net income
|
$
|
218.0
|
|
|
$
|
145.1
|
|
|
$
|
406.4
|
|
|
$
|
244.1
|
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(Unaudited)
|
||||||||||||||
Diluted net income per share
|
$
|
0.44
|
|
|
$
|
0.18
|
|
|
$
|
0.74
|
|
|
$
|
0.07
|
|
Stock-based compensation expense
|
0.43
|
|
|
0.40
|
|
|
0.87
|
|
|
0.74
|
|
||||
Amortization of developed technologies
|
0.03
|
|
|
0.04
|
|
|
0.07
|
|
|
0.08
|
|
||||
Amortization of purchased intangibles
|
0.04
|
|
|
0.05
|
|
|
0.09
|
|
|
0.09
|
|
||||
Acquisition-related costs
|
0.03
|
|
|
0.02
|
|
|
0.03
|
|
|
0.09
|
|
||||
Loss (gain) on strategic investments and dispositions, net
|
0.06
|
|
|
(0.01
|
)
|
|
0.14
|
|
|
0.01
|
|
||||
Discrete tax provision items
|
—
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
||||
Income tax effect of non-GAAP adjustments
|
(0.05
|
)
|
|
(0.04
|
)
|
|
(0.11
|
)
|
|
0.02
|
|
||||
Non-GAAP diluted net income per share
|
$
|
0.98
|
|
|
$
|
0.65
|
|
|
$
|
1.83
|
|
|
$
|
1.10
|
|
(1)
|
Totals may not sum due to rounding.
|
|
Six Months Ended July 31,
|
||||||
(in millions)
|
2020
|
|
2019
|
||||
Net cash provided by operating activities
|
$
|
418.5
|
|
|
$
|
440.5
|
|
Net cash used in investing activities
|
(111.8
|
)
|
|
(32.5
|
)
|
||
Net cash used in financing activities
|
(642.6
|
)
|
|
(366.1
|
)
|
(Shares in thousands)
|
Total Number of
Shares
Purchased
|
|
Average Price
Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)
|
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (2)
|
|||||
May 1 - May 31
|
10.0
|
|
|
$
|
174.42
|
|
|
10.0
|
|
|
13,479.0
|
|
June 1 - June 30
|
—
|
|
|
—
|
|
|
—
|
|
|
13,479.0
|
|
|
July 1 - July 31
|
26.0
|
|
|
232.70
|
|
|
26.0
|
|
|
13,453.0
|
|
|
Total
|
36.0
|
|
|
$
|
216.84
|
|
|
36.0
|
|
|
|
|
(1)
|
This represents shares purchased in open-market transactions under the stock repurchase plan approved by the Board of Directors.
|
(2)
|
These amounts correspond to the plan approved by the Board of Directors in September 2016 that authorized the repurchase of 30.0 million shares. The plan does not have a fixed expiration date. See Note 16, “Stockholders' Equity (Deficit),” in the Notes to the Condensed Consolidated Financial Statements for further discussion.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
•
|
the inability to retain customers, key employees, vendors, distributors, business partners, and other entities associated with the acquired business;
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•
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the potential that due diligence of the acquired business or solution does not identify significant problems;
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exposure to litigation or other claims in connection with, or inheritance of claims or litigation risk as a result of, an acquisition, including but not limited to, claims from terminated employees, customers, or other third parties;
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•
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the potential for incompatible business cultures;
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significantly higher than anticipated transaction or integration-related costs;
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•
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the potential additional exposure to fluctuations in currency exchange rates; and
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•
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the potential impact on relationships with existing customers, vendors, and distributors as business partners as a result of acquiring another business.
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•
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economic volatility;
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tariffs, quotas, and other trade barriers and restrictions;
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fluctuating currency exchange rates, including devaluations, currency controls and inflation, and risks related to any hedging activities we undertake;
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unexpected changes in regulatory requirements and practices;
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delays resulting from difficulty in obtaining export licenses for certain technology;
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different purchase patterns as compared to the developed world;
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operating in locations with a higher incidence of corruption and fraudulent business practices, particularly in emerging economies;
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increasing enforcement by the U.S. under the Foreign Corrupt Practices Act, and adoption of stricter anti-corruption laws in certain countries, including the United Kingdom;
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difficulties in staffing and managing foreign sales and development operations;
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local competition;
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longer collection cycles for accounts receivable;
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U.S. and foreign tax law changes impacting how multinational companies are taxed and the complexities of tax reporting;
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laws regarding the management of and access to data and public networks;
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possible future limitations upon foreign owned businesses;
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increased financial accounting and reporting burdens and complexities;
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inadequate local infrastructure;
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greater difficulty in protecting intellectual property;
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software piracy; and
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other factors beyond our control, including popular uprisings, terrorism, war, natural disasters, and diseases and pandemics, such as COVID-19.
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general market, economic, business, and political conditions in Europe, APAC, and emerging economies, including from an economic downturn or recession in the United States or in other countries around the world;
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failure to produce sufficient revenue, billings, subscription, profitability and cash flow growth, including as a result of the current COVID-19 pandemic;
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failure to accurately predict the impact of acquired businesses or to identify and realize the anticipated benefits of acquisitions, and successfully integrate such acquired businesses and technologies;
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•
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potential goodwill impairment charges related to prior acquisitions
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•
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failure to manage spend;
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changes in billings linearity;
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changes in subscription mix, pricing pressure or changes in subscription pricing;
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weak or negative growth in one or more of the industries we serve, including AEC, manufacturing, and digital media and entertainment markets;
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the success of new business or sales initiatives;
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security breaches, related reputational harm, and potential financial penalties to customers and government entities;
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restructuring or other accounting charges and unexpected costs or other operating expenses;
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timing of additional investments in our technologies or deployment of our services;
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changes in revenue recognition or other accounting guidelines employed by us and/or established by the Financial Accounting Standards Board, Securities Exchange Commission or other rule-making bodies;
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fluctuations in foreign currency exchange rates and the effectiveness of our hedging activity;
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dependence on and the timing of large transactions;
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adjustments arising from ongoing or future tax examinations;
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the ability of governments around the world to adopt fiscal policies, meet their financial and debt obligations, and to finance infrastructure projects;
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failure to expand our AutoCAD and AutoCAD LT customer base to related design products and services;
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our ability to rapidly adapt to technological and customer preference changes, including those related to cloud computing, mobile devices and new computing platforms;
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the timing of the introduction of new products by us or our competitors;
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the financial and business condition of our reseller and distribution channels;
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perceived or actual technical or other problems with a product or combination of subscriptions;
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unexpected or negative outcomes of matters and expenses relating to litigation or regulatory inquiries;
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increases in cloud functionality-related expenses;
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•
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timing of releases and retirements of offerings;
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•
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changes in tax laws, tax or accounting rules and regulations, such as increased use of fair value measures;
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•
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changes in sales compensation practices;
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failure to effectively implement and maintain our copyright legalization programs, especially in developing countries;
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renegotiation or termination of royalty or intellectual property arrangements;
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interruptions or terminations in the business of our consultants or third-party developers;
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the timing and degree of expected investments in growth and efficiency opportunities;
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failure to achieve continued success in technology advancements;
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•
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catastrophic events, natural disasters, or public health situations, such as pandemics and epidemics, including COVID-19;
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•
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regulatory compliance costs; and
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•
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failure to appropriately estimate the scope of services under consulting arrangements.
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•
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cause us to dedicate a substantial portion of our cash flows from operations towards debt service obligations and principal repayments;
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•
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increase our vulnerability to adverse changes in general economic, industry and competitive conditions;
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•
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limit our flexibility in planning for, or reacting to, changes in our business and our industry;
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•
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impair our ability to obtain future financing for working capital, capital expenditures, acquisitions, general corporate or other purposes; and
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•
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due to limitations within the debt instruments, restrict our ability to grant liens on property, enter into certain mergers, dispose of all or substantially all of the assets of Autodesk and its subsidiaries, taken as a whole, materially change our business and incur subsidiary indebtedness, subject to customary exceptions.
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•
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shortfalls in our expected financial results, including net revenue, billings, earnings and cash flow or key performance metrics, such as subscriptions, including as a result of the current COVID-19 pandemic, and how those results compare to securities analyst expectations, including whether those results fail to meet, exceed, or significantly exceed securities analyst expectations;
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•
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quarterly variations in our or our competitors' results of operations;
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•
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general socio-economic, political or market conditions, including from an economic downturn or recession in the United States or in other countries around the world;
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•
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changes in forward-looking estimates of future results, how those estimates compare to securities analyst expectations, or changes in recommendations or confusion on the part of analysts and investors about the short-term and long-term impact to our business;
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•
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uncertainty about certain governments' abilities to repay debt or effect fiscal policy;
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•
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the announcement of new offerings or enhancements by us or our competitors;
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•
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unusual events such as significant acquisitions, divestitures, regulatory actions, and litigation;
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•
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changes in laws, rules, or regulations applicable to our business;
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•
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outstanding debt service obligations; and
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•
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other factors, including factors unrelated to our operating performance, such as instability affecting the economy or the operating performance of our competitors.
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ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
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ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS
|
Exhibit No.
|
|
Description
|
|
|
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|
|
31.1
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31.2
|
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32.1 †
|
|
|
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|
101.INS ††
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
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101.SCH ††
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|
XBRL Taxonomy Extension Schema
|
|
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101.CAL ††
|
|
XBRL Taxonomy Extension Calculation Linkbase
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101.DEF ††
|
|
XBRL Taxonomy Definition Linkbase
|
|
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101.LAB ††
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XBRL Taxonomy Extension Label Linkbase
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101.PRE ††
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|
XBRL Taxonomy Extension Presentation Linkbase
|
|
|
|
104 ††
|
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
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*
|
Denotes a management contract or compensatory plan or arrangement.
|
†
|
The certifications attached as Exhibit 32 that accompany this Quarterly Report on Form 10-Q are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of Autodesk, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Form 10-Q, irrespective of any general incorporation language contained in such filing.
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|
|
††
|
The financial information contained in these XBRL documents is unaudited.
|
|
AUTODESK, INC.
|
(Registrant)
|
|
/s/ STEPHEN W. HOPE
|
Stephen W. Hope
|
Vice President and Chief Accounting Officer
|
(Principal Accounting Officer)
|
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