Autodesk, Inc. · NASDAQ:ADSK
Autodesk — Q1 FY2020 Earnings Presentation
30 slides from Autodesk's earnings presentation, May 23, 2019
Slide 1: First Quarter Fiscal 2020 Earnings
First Quarter Fiscal 2020 Earnings May 23, 2019 © 2019 Autodesk, Inc.
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward looking statements about revenue, billings, free cash flow, ARR, spend and EPS, products, future performance, financial and otherwise, including statements regarding our progress on our key priorities, business model transformation, guidance for the sec
Slide 3: Strong Start to Fiscal 2020
Strong Start to Fiscal 2020 Results Reflect Business Momentum Across Core and Cloud 33% 96% $735M $207M ARR Growth Recurring Revenue Total Revenue Free Cash Flow See appendix for glossary of terms. 3
Slide 4: Strong Growth Across All Products & Geographies
Strong Growth Across All Products & Geographies Q120 REVENUE MIX BY PRODUCT FAMILY(1,2) Q120 REVENUE MIX BY GEOGRAPHY(2) MFG APAC $168M $143M Up 24% Y/Y Up 35% Y/Y Americas $46M M&E $304M Up 9% $296M Y/Y AEC Up 27% Up 37% Y/Y Y/Y $213M $297M Up 37% Y/Y Up 35% Y/Y AutoCAD and EMEA AutoCAD LT (1) Excl
Slide 5: Q120 Within FY19 Range of Approx. 110% - 120%
Q120 Within FY19 Range of Approx. 110% - 120% Net Revenue Retention Rate New & Re-engaged $40k Customers Paid Base Same Cohort Active Customers of Paid Base ARR ($) Customers $100k $115k (A) (B) Example of Net Revenue Retention Rate Calculation FY1 Conceptual representation FY2 Net Revenue Retention
Slide 6: Q120 Strategic Update
Q120 Strategic Update Executing in Winning in Digitizing the Company Construction Manufacturing § BIM 360 ARR growth § Manufacturing revenue up § All new single user accelerates 24% year-over-year, with subscriptions are on strength across all products identity-based § Strong revenue growth and and
Slide 7: Q120 Construction Highlights
Q120 Construction Highlights Realizing Sales and Displacing the Expanding Wallet Share R&D Synergies Competition § Long standing PlanGrid § Introduction of PlanGrid § Customers choosing Customer renewed for three BIM generated 5x more Autodesk over competition years in part due to customer interest
Slide 8: Billings of $798 Million in Q120
Billings of $798 Million in Q120 Up ~40% Y/Y on an adjusted basis $1,200 $1,037 $1,000 $955 $798 $ in millions Billings $800 $734 $745 $692 $643 $654 $605 $576 $571 $600 $547 $516 $503 $499 $503 $476 $400 ASC 606 adjustments $200 $0 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q2
Slide 9: Free Cash Flow: Strong Start to Fiscal Year
Free Cash Flow: Strong Start to Fiscal Year On Track to Achieve FY20 Guidance of $1.35 Billion $600 Generated Trailing Twelve Months FCF of Trailing Twelve Months Free Cash Flow(1) $500 $550M by Q120 end $400 $300 $ in millions $200 $100 $0 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419
Slide 10: Outlook
Outlook Q2 FY20(1) FY20(1) (ending July 31, 2019) (ending January 31, 2020) $3,500 - $3,550 Revenue $782M - $792M Total ARR (in millions) Up 27%-29% EPS GAAP $0.13 - $0.17 Billings (in millions) $4,050 - $4,150 Up 50%-53% EPS non-GAAP(1) $0.59 - $0.63 Revenue (in millions) $3,250 - $3,300 Up 26%-28%
Slide 11: Non-GAAP FY20 Model Considerations
Non-GAAP FY20 Model Considerations INCOME STATEMENT BALANCE SHEET / CASH FLOW § Recurring revenue as percent of total expected to be § Expect to retire remaining term loan associated consistent with FY19 in mid-90% range with the 4Q19 acquisitions by end of FY20 § Gross margins expected to expand mo
Slide 12: Appendix
Appendix 12
Slide 13: Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (In millions, except per share data) To supplement our consolidated financial statements presented on a GAAP basis, we provide investors with certain non-GAAP measures including non- GAAP net income per share, non-GAAP operatin
Slide 14: First Quarter Fiscal 2020 Results Excluding Recent Acquisitions
Appendix First Quarter Fiscal 2020 Results Excluding recent Acquisitions(1,2,3) ($ in millions except subscription and per subscription data) Recent Consolidated ex- Y/Y change ex- Consolidated Acquisitions (3) Acquisitions Acquisitions Subscription & Maintenance Revenue $ 707.8 $ 20.7 $ 687.1 29% O
Slide 15: First Quarter Fiscal 2020 Overview
Appendix First Quarter Fiscal 2020 Overview Total Y/Y change, as ($ in millions except per share data) (1) Q1 19 Q1 20 reported Management Comments Driven by growth in all subscription plan types, led by product Subscription plan ARR (2) $ 1,401.5 $ 2,383.3 70% subscriptions Reflects migration of ma
Slide 16: Appendix – Other Financial Information
Appendix – Other Financial Information In millions except per share data (1) Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 ARR Subscription plan ARR $ 691.9 $ 783.7 $ 924.0 $ 1,175.0 $ 1,401.5 $ 1,681.8 $ 1,925.1 $ 2,200.1 $ 2,383.3 Maintenance plan ARR $ 1,051.7 $ 1,046.0 $ 977.8 $ 879.1 $ 724.9 $ 6
Slide 17: Appendix – Other Financial Information
Appendix – Other Financial Information In millions(1,2) Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Revenue (4) Recurring revenue $ 435.9 $ 457.4 $ 475.5 $ 513.5 $ 531.6 $ 586.8 $ 631.4 $ 687.4 707.8 Recurring revenue as a percentage of total revenue 90% 91% 92% 93% 95% 96% 96% 93% 96% Subscription
Slide 18: Appendix – Other Financial Information
Appendix – Other Financial Information In millions (1,2) Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Billings & Deferred Revenue Billings $ 499.2 $ 476.3 $ 503.2 $ 745.0 $ 411.2 $ 604.8 $ 653.5 $ 1,036.6 797.6 Deferred Revenue $ 1,801.5 $ 1,776.0 $ 1,763.9 $ 1,955.1 $ 1,806.4 $ 1,799.5 $ 1,792.1 $
Slide 19: Appendix – Other Financial Information
Appendix – Other Financial Information In millions except per share data (1) Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Gross Margin Gross Margin - GAAP 84% 85% 85% 87% 88% 89% 89% 90% 89% Gross Margin - Non-GAAP 86% 87% 86% 88% 89% 90% 90% 91% 91% Total Spend Total Spend - GAAP $ 605.3 $ 609.4 $
Slide 20: Appendix – Non-GAAP Reconciliation to GAAP
Appendix – Non-GAAP Reconciliation to GAAP (In millions, except per share data) Three Months Ended April 30, 2019 2018 GAAP cost of subscription and maintenance revenue $ 59.7 $ 50.4 Stock-based compensation expense (3.6) (2.7) Non-GAAP cost of subscription and maintenance revenue $ 56.1 $ 47.7 GAAP
Slide 21: Non-GAAP Reconciliation to GAAP
Appendix – Non-GAAP Reconciliation to GAAP (In millions, except per share data) Three Months Ended April 30, 2019 2018 GAAP restructuring and other exit costs, net 0.2 22.5 Restructuring and other exit costs, net (0.2) (22.5) Non-GAAP restructuring and other exit costs, net — — GAAP operating expens
Slide 22: Appendix – Non-GAAP Reconciliation to GAAP
Appendix – Non-GAAP Reconciliation to GAAP (In millions, except per share data) Three Months Ended April 30, 2019 2018 GAAP net loss $ (24.2) $ (82.4) Stock-based compensation expense 75.2 54.4 Amortization of developed technology 9.2 3.6 Amortization of purchased intangibles 9.8 3.8 Acquisition rel
Slide 23: Appendix – Non-GAAP Reconciliation to GAAP
Appendix – Non-GAAP Reconciliation to GAAP Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 (Unaudited) GAAP gross margin 84% 85% 85% 87% 88% 89% 89% 90% 89% Stock-based compensation expense 1% 1% 1% 1% 1% 1% 1% 1% 1% Amortization of developed technology 1% 1% 1% 1% 1% 1% 1% 1% 1% Non-GAAP gross margin
Slide 24: Appendix – Non-GAAP Reconciliation to GAAP
Appendix – Non-GAAP Reconciliation to GAAP Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 (Unaudited) GAAP operating margin (25)% (21)% (19)% (33)% (10)% (4)% 2% 5% 3% Stock-based compensation expense 12% 12% 13% 11% 10% 9% 10% 10% 10% Amortization of developed technology 1% 1% 1% 1% 1% 1% 1% 1% 1% Am
Slide 25: 2QFY20 Outlook GAAP to Non-GAAP EPS Reconciliation
Appendix 2QFY20 Outlook GAAP to Non-GAAP EPS Reconciliation GAAP $0.13 - $0.17 Stock-based compensation expense $0.37 Amortization of acquisition-related intangibles $0.08 Acquisition related costs $0.04 GAAP-only tax charges $(0.03) Non-GAAP $0.59 - $0.63 25
Slide 26: FY20 Outlook GAAP to Non-GAAP EPS Reconciliation
Appendix FY20 Outlook GAAP to Non-GAAP EPS Reconciliation GAAP $0.83 - $1.02 Stock-based compensation expense $1.47 Amortization of acquisition-related intangibles $0.33 Acquisition related costs $0.18 Loss on strategic investments & dispositions $0.02 GAAP-only tax charges $(0.12) Non-GAAP $2.71 -
Slide 27: Glossary of Terms
Glossary of Terms Annualized Recurring Revenue (ARR): Represents the annualized value of our average monthly recurring revenue for the preceding three months. "Maintenance plan ARR” captures ARR relating to traditional maintenance attached to perpetual licenses. "Subscription plan ARR" captures ARR
Slide 28: Glossary of Terms
Glossary of Terms Enterprise Business Agreements (EBAs): Represents programs providing enterprise customers with token-based access or a fixed maximum number of seats to a broad pool of Autodesk products over a defined contract term. Free Cash Flow: Cash flow from operating activities minus capital
Slide 29: Glossary of Terms
Glossary of Terms Recurring Revenue: Consists of the revenue for the period from our traditional maintenance plans and revenue from our subscription plan offerings. It excludes subscription revenue related to consumer product offerings, select Creative Finishing product offerings, education offering
Slide 30: Trademark notice
Autodesk and the Autodesk logo are registered trademarks or trademarks of Autodesk, Inc., and/or its subsidiaries and/or affiliates in the USA and/or other countries. All other brand names, product names, or trademarks belong to their respective holders. Autodesk reserves the right to alter product