(1) Non-GAAP earnings per diluted share exclude $0.28 related to restructuring expense, $0.27 related to stock-based compensation expense, between $0.18 and $0.14 of GAAP-only tax charges, and $0.10 for the amortization of acquisition related intangibles, offset by $0.02 for gains on strategic investments.
Full Year Fiscal 2017
| FY17 Guidance Metrics | FY17 (ending January 31, 2017) | |||
| Revenue (in millions) (1) | $1,950 - $2,050 | |||
| GAAP Spend (cost of revenue plus operating expenses) | 3% - 4% | |||
| Non-GAAP Spend (cost of revenue plus operating expenses) (2) | (1%) - flat | |||
| EPS GAAP |
($3.32) - ($2.91) |
|||
| EPS Non-GAAP (3) | ($0.85) - ($0.60) | |||
| Net Subscription Additions | 475,000 - 525,000 |
_______________
(1) Excluding the impact of foreign currency rates and hedge gains/losses revenue guidance would be $2.0 - $2.1 billion.
(2) Non-GAAP spend excludes $234 million related to stock-based compensation expense, $88 million related to restructuring expense, and $67 million for the amortization of acquisition related intangibles.
(3) Non-GAAP earnings per diluted share excludes $1.05 related to stock-based compensation expense, between $0.75 and $0.59 of GAAP-only tax charges, $0.39 related to restructuring expense, and $0.30 for the amortization of acquisition related intangibles, offset by $0.02 for gains on strategic investments.
The first quarter and full year fiscal 2017 outlook assume a projected annual effective tax rate of (11) percent and 36.5 percent for GAAP and non-GAAP results, respectively.
Earnings Conference Call and Webcast
Autodesk will host its fourth quarter conference call today at 5:00 p.m. ET. The live broadcast can be accessed at http://www.autodesk.com/investors. Supplemental financial information and prepared remarks for the conference call will be posted to the investor relations section of Autodesk's website simultaneously with this press release.
A replay of the broadcast will be available at 7:00 pm ET at http://www.autodesk.com/investors. This replay will be maintained on Autodesk's website for at least 12 months.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including statements in the paragraphs under “Business Outlook” above, statements regarding the impacts and results of our business model transition, expectations regarding the transition of product offerings to subscription, our long-term financial goals, statements regarding the impact of our restructuring and other statements regarding our strategies, market and products positions, performance, and results. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: failure to maintain our revenue growth and profitability; failure to successfully manage transitions to new business models and markets, including the introduction of additional ratable revenue streams and our continuing efforts to attract customers to our cloud-based offerings and expenses related to the transition of our business model; difficulty in predicting revenue from new businesses and the potential impact on our financial results from changes in our business models; general market, political, economic and business conditions; the impact of non-cash charges on our financial results; fluctuation in foreign currency exchange rates; the success of our foreign currency hedging program; failure to maintain cost reductions or otherwise control our expenses; our performance in particular geographies, including emerging economies; the ability of governments around the world to meet their financial and debt obligations, and finance infrastructure projects; weak or negative growth in the industries we serve; slowing momentum in subscription billings or revenues; difficulties encountered in integrating new or acquired businesses and technologies; the inability to identify and realize the anticipated benefits of acquisitions; the financial and business condition of our reseller and distribution channels; dependence on and the timing of large transactions; failure to achieve sufficient sell-through in our channels for new or existing products; pricing pressure; unexpected fluctuations in our tax rate; the timing and degree of expected investments in growth and efficiency opportunities; changes in the timing of product releases and retirements; and any unanticipated accounting charges.
Further information on potential factors that could affect the financial results of Autodesk are included in Autodesk's Annual Report on Form 10-K for the year ended January 31, 2015 and Form 10-Q for the quarter ended October 31, 2015, which are on file with the U.S. Securities and Exchange Commission. Autodesk disclaims any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
About Autodesk
Autodesk helps people imagine, design and create a better world. Everyone--from design professionals, engineers and architects to digital artists, students and hobbyists--uses Autodesk software to unlock their creativity and solve important challenges. For more information visit autodesk.com or follow @autodesk.
Autodesk is a registered trademark 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 and service offerings, and specifications and pricing at any time without notice, and is not responsible for typographical or graphical errors that may appear in this document.
© 2016 Autodesk, Inc. All rights reserved.
| Autodesk, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||
| Three Months Ended January 31, | Fiscal Year Ended January 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Net revenue: | ||||||||||||||||
| License and other | $ | 328.8 | $ | 354.3 | $ | 1,226.9 | $ | 1,341.4 | ||||||||
| Subscription | 319.5 | 310.3 | 1,277.2 | 1,170.8 | ||||||||||||
| Total net revenue | 648.3 | 664.6 | 2,504.1 | 2,512.2 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Cost of license and other revenue | 55.5 | 53.9 | 214.6 | 208.5 | ||||||||||||
| Cost of subscription revenue | 39.4 | 35.6 | 156.1 | 133.6 | ||||||||||||
| Total cost of revenue | 94.9 | 89.5 | 370.7 | 342.1 | ||||||||||||
| Gross profit | 553.4 | 575.1 | 2,133.4 | 2,170.1 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Marketing and sales | 277.4 | 289.9 | 1,015.5 | 998.0 | ||||||||||||
| Research and development | 204.5 | 191.5 | 790.0 | 725.2 | ||||||||||||
| General and administrative | 73.2 | 70.4 | 293.4 | 283.3 | ||||||||||||
| Amortization of purchased intangibles | 8.0 | 9.3 | 33.2 | 39.8 | ||||||||||||
| Restructuring charges, net | — | — | — | 3.1 | ||||||||||||
| Total operating expenses | 563.1 | 561.1 | 2,132.1 | 2,049.4 | ||||||||||||
| (Loss) income from operations | (9.7 | ) | 14.0 | 1.3 | 120.7 | |||||||||||
| Interest and other expense, net | (10.8 | ) | (21.1 | ) | (21.6 | ) | (37.7 | ) | ||||||||
| (Loss) income before income taxes | (20.5 | ) | (7.1 | ) | (20.3 | ) | 83.0 | |||||||||
| Provision for income taxes | (12.2 | ) | 18.6 | (305.7 | ) | (1.2 | ) | |||||||||
| Net (loss) income | $ | (32.7 | ) | $ | 11.5 | $ | (326.0 | ) | $ | 81.8 | ||||||
| Basic net (loss) income per share | $ | (0.15 | ) | $ | 0.05 | $ | (1.44 | ) | $ | 0.36 | ||||||
| Diluted net (loss) income per share | $ | (0.15 | ) | $ | 0.05 | $ | (1.44 | ) | $ | 0.35 | ||||||
| Weighted average shares used in computing basic net (loss) income per share | 224.7 | 227.2 | 226.0 | 227.1 | ||||||||||||
| Weighted average shares used in computing diluted net (loss) income per share | 224.7 | 232.2 | 226.0 | 232.4 | ||||||||||||
| Autodesk, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In millions) | ||||||||
| January 31, 2016 | January 31, 2015 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,353.0 | $ | 1,410.6 | ||||
| Marketable securities | 897.9 | 615.8 | ||||||
| Accounts receivable, net | 653.6 | 458.9 | ||||||
| Deferred income taxes, net (1) | — | 85.1 | ||||||
| Prepaid expenses and other current assets | 88.6 | 100.9 | ||||||
| Total current assets | 2,993.1 | 2,671.3 | ||||||
| Marketable securities | 532.3 | 273.0 | ||||||
| Computer equipment, software, furniture and leasehold improvements, net | 169.3 | 159.2 | ||||||
| Developed technologies, net | 70.8 | 86.5 | ||||||
| Goodwill | 1,535.0 | 1,456.2 | ||||||
| Deferred income taxes, net (1) | 9.2 | 100.0 | ||||||
| Other assets (2) | 205.6 | 163.5 | ||||||
| Total assets | $ | 5,515.3 | $ | 4,909.7 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 119.9 | $ | 100.5 | ||||
| Accrued compensation | 243.3 | 253.3 | ||||||
| Accrued income taxes | 29.4 | 28.2 | ||||||
| Deferred revenue |
1,068.9 |
900.8 | ||||||
| Other accrued liabilities (1) | 129.5 | 117.3 | ||||||
| Total current liabilities |
1,591.0 |
1,400.1 | ||||||
| Deferred revenue |
450.3 |
256.3 | ||||||
| Long term income taxes payable | 161.4 | 158.8 | ||||||
| Long term deferred income taxes (1) | 63.2 | — | ||||||
| Long term notes payable, net (2) | 1,487.7 | 743.1 | ||||||
| Other liabilities | 137.6 | 132.2 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock | — | — | ||||||
| Common stock and additional paid-in capital | 1,821.5 | 1,773.1 | ||||||
| Accumulated other comprehensive loss | (121.1 | ) | (53.3 | ) | ||||
| Retained earnings | (76.3 | ) | 499.4 | |||||
| Total stockholders’ equity | 1,624.1 | 2,219.2 | ||||||
| Total liabilities and stockholders' equity | $ | 5,515.3 | $ | 4,909.7 | ||||
