AUTODESK INC (ADSK) SEC Filing 10-Q Quarterly report for the period ending Wednesday, October 31, 2018
Total ARR was $2.53 billion, an increase of 33 percent compared to the third quarter last year as reported, and 31 percent on a constant currency basis. Under the prior revenue accounting standard, ASC 605, total ARR was $2.49 billion, an increase of 31 percent compared to the third quarter last year.
Subscription plan ARR was $1.93 billion, an increase of 108 percent compared to the third quarter last year as reported, and 105 percent on a constant currency basis. Under ASC 605, subscription plan ARR was $1.89 billion, an increase of 105 percent compared to the third quarter last year.
Total subscriptions increased 143,000 from the second quarter of fiscal 2019 to 4.08 million at the end of the third quarter.
Subscription plan subscriptions increased 252,000 from the second quarter of fiscal 2019 to 3.12 million at the end of the third quarter. Subscription plan subscriptions benefited from 71,000 maintenance subscribers that converted to product subscription under the maintenance-to-subscription (M2S) program.
Deferred revenue was $1.79 billion, an increase of 2 percent compared to the third quarter last year. Total deferred revenue (deferred revenue plus unbilled deferred revenue) was $2.24 billion, an increase of approximately 17 percent compared to the third quarter last year. Under ASC 605, total deferred revenue was $2.32 billion, an increase of approximately 21 percent compared to the third quarter last year.
Revenue was $661 million, an increase of 28 percent compared to the third quarter last year as reported, and 27 percent on a constant currency basis. Under ASC 605, revenue was $651 million, an increase of 26 percent compared to the third quarter last year.
Billings were $654 million, an increase of 30 percent compared to the third quarter last year. Under ASC 605, billings were $661 million, an increase of 31 percent compared to the third quarter last year.
The following information was filed by AUTODESK INC on Tuesday, November 20, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
Sentiment Analysis off on
|Filter by Sentiment:||Filter by Category:||
View our Sentiment Analysis Tour
|Filter by Subcategory:|
|Click a sentiment analysis snippet below from AUTODESK INC's Management Discussions to find these positive and negative remarks within their 10-Q Quarterly report:|
- 18487877_311Financial - ExpenseNet cash provided by operating activities of $65.6 million for the nine months ended October 31, 2018 includes $311.1 million of non-cash expenses, including stock-based compensation expense, depreciation, amortization and accretion expense, partially offset by our net loss of $145.5 million and a decrease in changes in operating assets and liabilities of $100.0 million.
- 18487877_2Other - OtherIn addition, forward-looking statements also consist of statements involving expectations regarding product capability and acceptance, statements regarding our liquidity and short-term and long-term cash requirements, as well as statements involving trend analyses and statements including such words as "may," "believe," "could," "anticipate," "would," "might," "plan," "expect," and similar expressions or the negative of these terms or other comparable terminology.
- 18487877_99Other - OtherSubscription plan subscriptions increased 9% or approximately 0.3 million as compared to the previous quarter and 37% or approximately 0.8 million as compared to the end of fiscal 2018, driven by growth in all subscription plan types, led by new product subscriptions.
- 18487877_282Financial - DebtThe amended financial covenants now consist of a maximum debt to total cash ratio, a fixed charge coverage ratio extending through October 31, 2018, and after October 31, 2018, a minimum interest coverage ratio.
- 18487877_100Other - OtherSubscription plan subscriptions benefited from approximately 0.1 million and 0.3 million maintenance subscribers that were converted to product subscription under the M2S program during the three and nine months ended October 31, 2018, respectively.
- 18487877_168Financial - ExpenseCosts associated with the Fiscal 2018 Plan are principally from employee termination benefits, lease termination costs and other exit costs.
- 18487877_177Financial - ExpenseCosts associated with the Fiscal 2018 Plan are principally from employee termination benefits, lease termination costs and other exit costs.
- 18487877_26Other - OtherTo analyze progress, we disaggregate our growth between the original maintenance model ("maintenance plan") and the subscription plan model.
- 18487877_140Revenue - ProductOther revenue also includes software license revenue from the sale of products which do not incorporate substantial cloud services and is recognized up front.
- 18487877_101Other - OtherMaintenance plan subscriptions decreased 10% or approximately 0.1 million from the previous quarter and 34% or approximately 0.5 million from the end of fiscal 2018, primarily as a result of the strong performance of the M2S program in which approximately 0.1 million and 0.3 million maintenance plan subscriptions converted to product subscription during the three and nine months ended October 31, 2018, respectively.
- 18487877_151Financial - ExpenseCost of Revenue and Operating Expenses Cost of subscription and maintenance revenue includes the labor costs of providing product support to our subscription and maintenance customers, including allocated IT and facilities costs, professional services fees related to operating our network and cloud infrastructure, royalties, depreciation expense and operating lease payments associated with computer equipment, data center costs, salaries, related expenses of network operations, and stock-based compensation expense.
- 18487877_53MA - OtherAcquisitions often increase the speed at which we can deliver product functionality to our customers; however, they entail cost and integration challenges and may, in certain instances, negatively impact our operating margins.
- 18487877_293MA - OtherAcquisitions often increase the speed at which we can deliver product functionality to our customers; however, they entail cost and integration challenges and, in certain instances, negatively impact our operating margins.
- 18487877_222Other - OtherThere are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies.
- 18487877_164Financial - ExpenseResearch and development 181.0 (10.8 ) (6 )% 191.8 Down primarily due to a decrease in employee-related costs driven by reduced headcount associated with the Fiscal 2018 Plan restructuring.
- 18487877_173Financial - Expense46 46 Research and development 534.6 (38.7 ) (7 )% 573.3 Down primarily due to a decrease in employee-related costs driven by reduced headcount associated with the Fiscal 2018 Plan restructuring.
- 18487877_135Revenue - ProductRevenue from these arrangements is recognized ratably over the contract term commencing with the date our service is made available to customers and when all other revenue recognition criteria have been satisfied.
- 18487877_238Revenue - ProductInvestors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well.
- 18487877_77Revenue - ProductRevenue Analysis Net revenue increased during the three and nine months ended October 31, 2018, as compared to the same periods in the prior fiscal year, primarily due to the respective 108% and 109% increase in subscription revenue, partially offset by a 39% and 35% decrease in maintenance revenue primarily as a result of the program to migrate customers from a maintenance plan to a subscription plan.
- 18487877_4Other - OtherAs such, our actual results could differ materially from those set forth in the forward-looking statements as a result of a number of factors, including those set forth below in Part II, , "Risk Factors," and in our other reports filed with the U.S. Securities and Exchange Commission.
- 18487877_274Financial - ExpenseOur primary use of cash is payment of our operating costs, which consist primarily of employee-related expenses, such as compensation and benefits, as well as general operating expenses for marketing, facilities and overhead costs.
- 18487877_170Financial - ExpenseOther (1) 39.0 (17.0 ) (30 )% 56.0 Down due to lower employee-related costs from reduced headcount associated with the Fiscal 2018 Plan restructuring.
- 18487877_158Financial - ExpenseResearch and development expenses, which are expensed as incurred, consist primarily of salaries, bonuses, benefits and stock-based compensation expense for research and development employees, the expense of travel, entertainment and training for such personnel, professional services such as fees paid to software development firms and independent contractors, gains and losses on our operating expense cash flow hedges, and allocated IT and facilities costs.
- 18487877_195Financial - IncomeConsidering this negative evidence and the absence of sufficient positive objective evidence that we would generate sufficient taxable income in our United States tax jurisdiction to realize the deferred tax assets, we determined that it was not more likely than not that the Company would realize the U.S. federal and state deferred tax assets and recorded a full valuation allowance.
- 18487877_256MA - OtherIn addition, the size and complexity of an acquisition, which often drives the magnitude of acquisition related costs, may not be indicative of such future costs.
- 18487877_307Other - OtherCash from operations could also be affected by various risks and uncertainties, including, but not limited to the risks detailed in Part II, titled "Risk Factors."
- 18487877_227Other - OtherWe urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate our business.
- 18487877_183Revenue - Geography47 47 Gains and losses on foreign currency are primarily due to the impact of re-measuring foreign currency transactions and net monetary assets into the functional currency of the corresponding entity.
- 18487877_56Other - OtherOur strategy depends upon a number of assumptions to successfully make the transition toward new cloud and mobile platforms, including: the related technology and business model shifts; making our technology available to mainstream markets; leveraging our large global network of distributors, resellers, third-party developers, customers, educational institutions, and students; improving the performance and functionality of our products; and adequately protecting our intellectual property.
- 18487877_152Financial - ExpenseCost of other revenue includes labor costs associated with product setup, costs of consulting and training services contracts, and collaborative project management services contracts.
- 18487877_341Revenue - GeographyWe calculate constant currency growth rates by (i) applying the applicable prior period exchange rates to current period results and (ii) excluding any gains or losses from foreign currency hedge contracts that are reported in the current and comparative periods.
- 18487877_228Financial - Earnings50 50 Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (In millions except for gross margin, operating margin, and per share data): 51 51 ____________________ (1) Totals may not sum due to rounding.
- 18487877_204Legal - OtherWhile it is possible that the Company's tax positions may be challenged, the Company believes its positions are consistent with the tax law, and the balance sheet reflects appropriate liabilities for uncertain federal tax positions for the years being examined.
- 18487877_219Other - OtherFor the reasons set forth below, we believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.
- 18487877_312Other - Other54 54 The primary working capital source of cash was a decrease in accounts receivable from $438.2 million as of January 31, 2018, to $309.0 million as of October 31, 2018.
- 18487877_30Revenue - ProductOur direct channels include internal sales resources dedicated to selling in our largest accounts, our highly specialized products, and business transacted through our online Autodesk branded store.
- 18487877_324Financial - Shares / EquityThe following table provides information about the repurchase of common stock in open-market transactions during the quarter ended October 31, 2018: ________________ (1) This represents shares purchased in open-market transactions under the stock repurchase plan approved by the Board of Directors.
- 18487877_272Financial - IncomeThe income tax effects that are excluded from the non-GAAP measures relate to the tax impact on the difference between GAAP and non-GAAP expenses, primarily due to stock-based compensation, amortization of purchased intangibles and restructuring charges and other exit costs (benefits) for GAAP and non-GAAP measures.
- 18487877_285Other - OtherBorrowings under the credit facility and the net proceeds from the offering of the Notes are available for general corporate purposes.
- 18487877_157Revenue - ProductMarketing and sales expenses also include payment processing fees, the cost of supplies and equipment, gains and losses on our operating expense cash flow hedges, allocated IT and facilities costs, and labor costs associated with sales and order management.
- 18487877_161Financial - ExpenseOther (1) 13.9 (5.7 ) (29 )% 19.6 Down primarily due to lower employee-related costs from reduced headcount associated with the Fiscal 2018 Plan restructuring and lower professional fees.
- 18487877_218Financial - EarningsWe also use non-GAAP measures in making operating decisions because we believe those measures provide meaningful supplemental information regarding our earning potential and performance for management by excluding certain expenses and charges that may not be indicative of our core business operating results.
- 18487877_137Other - OtherUnder our maintenance plan, customers are eligible to receive unspecified upgrades, when and if available, and technical support.
- 18487877_25Revenue - ProductAs we progress through the current stage of the business model transition, annualized recurring revenue ("ARR"), growth of billings, and total deferred revenue better reflect business momentum.
- 18487877_69Revenue - ProductOverview of the Three and Nine Months Ended October 31, 2018 and 2017 Total net revenue was $660.9 million and $1.83 billion for the three and nine months ended October 31, 2018, respectively, an increase of 28% and 22% compared to the same periods in the prior fiscal year.
- 18487877_76Revenue - ProductSee discussion below for additional information regarding certain metrics that were affected by the new standards under the heading "Impact of New Revenue Accounting Standard."
- 18487877_257MA - OtherWe believe excluding acquisition related costs facilitates the comparison of our financial results to the Company's historical operating results and to other companies in our industry.
- 18487877_119Revenue - Geography39 39 The following table shows the impact of foreign exchange rate changes on our net revenue and total spend: Three Months Ended October 31, 2018 Nine Months Ended October 31, 2018 Percent change compared toprior fiscal year Constant Currency percent change compared toprior fiscal year (2) Positive/Negative/Neutral impact from foreign exchange rate changes Percent change compared toprior fiscal year Constant Currency percent change compared toprior fiscal year (1) Positive/Negative/Neutral impact from foreign exchange rate changes Revenue 28 % 27 % Positive 22 % 21 % Positive Total spend 5 % 5 % Neutral 4 % 3 % Negative ________________ (1) Please refer to the Glossary of Terms for the definitions of our constant currency growth rates.
- 18487877_244Financial - ExpenseWe further believe that excluding the CEO transition costs from our non-GAAP results is useful to investors in that it allows for period-over-period comparability.
- 18487877_260Financial - DividendIncluded in these amounts are non-cash unrealized gains and losses on the derivative components, dividends received, realized gains and losses on the sales or losses on the impairment of these investments and dispositions.
- 18487877_320Other - OtherThese cash outflows were offset in part by cash proceeds from the issuance of common stock.
- 18487877_15Other - OtherOur cloud SaaS offerings, for example, BIM 360, Shotgun, Fusion, and AutoCAD 360 Pro, provide tools, including mobile and social capabilities, to streamline design, collaboration, building and manufacturing and data management processes.
- 18487877_203Revenue - ProductThe Internal Revenue Service is examining the Company's U.S. consolidated federal income tax returns for fiscal years 2014 and 2015.
- 18487877_197Other - OtherAs of October 31, 2018, we had $344.8 million of gross unrecognized tax benefits, of which $312.3 million represents the amount of unrecognized tax benefits that would reduce our valuation allowance, if recognized.
- 18487877_314Revenue - ProductNet cash provided by investing activities was $39.7 million for the nine months ended October 31, 2018, driven by the sales and maturities of marketable securities.
- 18487877_84Revenue - ProductRecurring Revenue and Subscriptions In order to help better understand our financial performance, we use several metrics including recurring revenue, ARR, total subscriptions, and annualized revenue per subscription ("ARPS").
- 18487877_73Revenue - ProductDeferred revenue was $1.79 billion, an increase of 2% compared to the third quarter in the prior fiscal year.
- 18487877_160Financial - ExpenseThree Months Ended Change compared toprior fiscal year Three Months Ended Management comments (in millions) October 31, 2018 $ % October 31, 2017 Cost of revenue: Subscription and maintenance $ 54.8 $ 0.9 2 % $ 53.9 Up primarily due to an increase in cloud hosting costs partially offset by decreased royalty and depreciation expense.
- 18487877_346Other - OtherWe introduced industry collections effective August 1, 2016 to replace our suites.
- 18487877_214Other - OtherOther Financial Information In addition to our results determined under GAAP discussed above, we believe the following non-GAAP measures are useful to investors in evaluating our operating performance.
- 18487877_239Other - OtherAmortization of developed technologies and purchased intangible assets will recur in future periods.
Please wait while we load the requested 10-Q Quarterly Report. If it does not load, please click the link below:https://www.last10k.com/sec-filings/report/769397/000076939718000051/adsk-10312018x10q.htm
Companies may provide additional information to their SEC Filings as exhibits. Click a link below to view an exhibit that was filed with this report:
Please wait while we load the requested exhibit. If it does not load, please click the link below:https://www.last10k.com/sec-filings/report/769397/000076939718000051/a10312018ex311.htm
Please wait while we load the requested exhibit. If it does not load, please click the link below:https://www.last10k.com/sec-filings/report/769397/000076939718000051/a10312018ex312.htm
Please wait while we load the requested exhibit. If it does not load, please click the link below:https://www.last10k.com/sec-filings/report/769397/000076939718000051/a10312018ex321.htm
- Form Type: Quarterly
- Number of times amended: 0
- Accession Number: 0000769397-18-000051
- Submitted to the SEC: Thursday, December 6, 2018 4:04:23 PM EST
- Accepted by the SEC: Thursday, December 6, 2018
- Period ending: October 2018
- Industry: Prepackaged Software
Positive and negative sentiment analysis is available in these filings:
Intrinsic Value, Financial Stability and Ratios