- Record Last Twelve Months Operating and Free Cash Flow of $791 Million and $731 Million, Respectively

SAN RAFAEL, Calif., Aug. 27, 2019 — (PRNewswire) —   Autodesk, Inc. (NASDAQ: ADSK) today reported financial results for the second quarter of fiscal 2020.

All growth rates are compared to the second quarter of fiscal 2019 unless otherwise noted. A reconciliation of GAAP to non-GAAP results is provided in the accompanying tables. For definitions, please view the Glossary of Terms later in this document.

• Total ARR increased 31 percent to $3.07 billion;
• Total billings increased 48 percent to $893 million;
• Total revenue increased 30 percent to $797 million; recurring revenue represents 96 percent of total;
• GAAP operating margin was 9 percent, up 13 percentage points;
• Non-GAAP operating margin was 23 percent, up 14 percentage points;
• GAAP diluted EPS was $0.18; Non-GAAP diluted EPS was $0.65;
• Cash flow from operating activities was $219 million; free cash flow was $205 million.

"We closed a solid first half of the year with a very strong second quarter as revenue, billings, earnings, and free cash flow came in ahead of expectations," said Andrew Anagnost, Autodesk president and CEO. "ARR grew to a record $3.1 billion, driven by all parts of the business. Construction demonstrated continued strength with wins across all parts of the portfolio, and Fusion 360 - our design-to-manufacturing platform - continued to build momentum. We also made further strides in capturing opportunities within our non-paying user base. In an environment of increasing uncertainty, we believe we are well-positioned to achieve our FY23 goals."

"Our strong performance during the second quarter helped us achieve two milestones," said Scott Herren, Autodesk CFO. "First, we drove our largest quarterly non-GAAP net income to date, followed by a record setting last twelve months free cash flow of $731 million. While we continue to execute well and are not materially impacted by current trade tensions and macro uncertainty, we are taking a prudent stance to our second half fiscal 2020 outlook. Despite these near-term headwinds, our recurring revenue model is much more resilient than in prior cycles."

Second Quarter Fiscal 2020 Financial Highlights

• Total ARR increased 31 percent to $3.07 billion as reported, and on a constant currency basis. Excluding fourth quarter acquisitions, total ARR increased 27 percent to $2.97 billion as reported, and 26 percent on a constant currency basis. On a sequential basis, total ARR increased 8 percent as reported, and 9 percent on a constant currency basis.
• Subscription plan ARR increased 58 percent to $2.65 billion as reported, and 59 percent on a constant currency basis. Excluding fourth quarter acquisitions, subscription plan ARR increased 52 percent to $2.56 billion. On a sequential basis, subscription plan ARR increased 11 percent as reported, and 12 percent on a constant currency basis. Subscription plan ARR includes $566 million related to the maintenance-to-subscription (M2S) program.
• Maintenance plan ARR decreased 38 percent to $414 million as reported, and 39 percent on a constant currency basis. On a sequential basis, maintenance plan ARR decreased 8 percent as reported, and on a constant currency basis.
• Core ARR increased 26 percent to $2.86 billion. On a sequential basis, core ARR increased 8 percent.
• Cloud ARR increased 175 percent to $207 million. Excluding fourth quarter acquisitions, cloud ARR increased 45 percent to $109 million. On a sequential basis, total cloud ARR increased 15 percent.
• Net revenue retention rate was within the range of 110 to 120 percent.
• Total revenue increased 30 percent to $797 million as reported, and on a constant currency basis. Excluding fourth quarter acquisitions, total revenue increased 26 percent to $772 million as reported, and 28 percent on a constant currency basis.
• Total recurring revenue in the second quarter was 96 percent of total revenue, consistent with the second quarter last year.
• GAAP operating income was $74 million compared to a loss of $25 million in the second quarter last year. GAAP operating margin was 9 percent, up 13 percentage points year-over-year.
• Total non-GAAP operating income was $187 million compared to $56 million in the second quarter last year. Non-GAAP operating margin was 23 percent, up 14 percentage points year-over-year.
• GAAP diluted net income per share was $0.18, compared to GAAP diluted net loss per share of $0.18 in the second quarter last year.
• Non-GAAP diluted net income per share was $0.65, compared to non-GAAP diluted net income per share of $0.19 in the second quarter last year.
• Total billings increased 48 percent to $893 million.
• Deferred revenue increased 25 percent to $2.25 billion. Unbilled deferred revenue was $563 million, an increase of $157 million. Remaining performance obligations (RPO), or the sum of total billed and unbilled deferred revenue, totaled $2.81 billion, an increase of 28 percent. Current RPO totaled $2.01 billion, up 23 percent.
• Cash flow from operating activities was $219 million, an increase of $176 million compared to the second quarter last year. Free cash flow was $205 million, an increase of $181 million compared to the second quarter last year.