Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
$ADSK's net cash provided by operating activities for 9 months ended Oct. 31, 2015 fell to $244.1MM from $450.9MM in the prior year period. Net cash used in investing activities slid to $756.1MM from $777.7MM last year. Net cash provided by financing activities was $441.3MM compared to cash used in financing activities of $179.7MM last year.
Autodesk expects to report positive cash flow with the help of growth in revenues and positive earnings growth in FY19. Smallest customers are the most reluctant to migrate from perpetual license to subscription based plans vs. big customers. $ADSK expects the operating expenses to be flat for FY19.
New customers accounted for 30% of new subscriber adds in 3Q18. Autodesk also renewed two largest contracts in its history and increasing the annual contract value by more than 50%. As a result of the ongoing restructuring, $ADSK plans to focus on digital infrastructure, increase marketing spend and focus development on the core products.
Autodesk reported 5% improvement in sales vs. 3Q17 helped by subscription revenues. Total subscribers improved 22% to 3.59MM, as it is transitioning to subscription-based model from perpetual license. $ADSK plans to lay off 13% of its workforce as part of its restructuring efforts, which would impact approx. 1,150 employees of total 9,000 workers.
$ADSK's total direct revenue for 2Q18 was 29% of total revenue, up from 25% in 2Q17. $ADSK is generating strong growth in the volume of business with large enterprise customers and it is seeing good growth with its e-store. Over 30% of North American product subscriptions have been generated through the e-store.
$ADSK's total annualized recurring revenue (ARR) for 2Q18 increased 21% to $1.83Bil compared to 2Q17 as reported, and 23% on a constant currency basis. Subscription plan ARR was $784MM and grew 94% as reported, and 98% constant currency. Maintenance plan ARR was $1.05Bil and fell 5% as reported, and on a constant currency basis, versus 2Q17.
For 3Q18, $ADSK expects revenue to be $505-515MM. GAAP loss per share is expected to be $0.64-0.58 and adjusted loss per share is expected to be $0.16-0.12 in 3Q18. For FY18, revenue is expected to be $2.03-2.05Bil. $ADSK expects GAAP loss per share to be $2.55-2.44 and adjusted loss per share to be $0.61-0.54 in FY18.
$ADSK's BoD has appointed Andrew Anagnost, current interim co-CEO and CMO, as its new president and CEO, effective immediately. He will also join the company's BoD. Anagnost's appointment follows the February 2017 resignation of former president and CEO, Carl Bass, and a comprehensive search process conducted by the board over the last four months.
$ADSK announced the pricing of its notes in an aggregate principal amount of $500MM in an underwritten, registered public offering. The notes will mature on June 15, 2027 and will bear interest at an annual rate of 3.500%. The notes are Autodesk's senior unsecured obligations. The offering is expected to close on June 8, 2017.
For 1Q18, $ADSK saw a YoY growth of over 170% in product subscriptions. The strength in product subscription was broad based with triple digit growth across all geographies and very strong growth in emerging markets, said the company. Additionally, new customers represented about a third of new product subscriptions for the quarter.
$ADSK said it is off to a good start to the new fiscal year with broad based strength across all subscription types and geographies. For 1Q18, the company added 186,000 total subscriptions, total ARR grew 20% at constant currency, and recurring revenue jumped to 90% of total revenue.
$ADSK's subscription plan (formerly known as new model) subscriptions increased 233,000 from last quarter to 1.32MM at the end of 1Q18. Maintenance plan subscriptions were 1.97MM, a net decrease of 47,000 from 4Q17. Total subscriptions grew 186,000 to 3.29MM.
$ADSK reported a narrower loss in 1Q18 driven by lower costs and expenses, despite a decline in revenue. Net loss narrowed to $129.6MM or $0.59 per share from $167.7MM or $0.75 per share last year. Revenue dropped to $485.7MM from $511.9MM. Non-GAAP loss per share widened to $0.16 from $0.10.
$ADSK saw growth in new customer acquisition in cloud products. The company made penetration into construction and manufacturing and saw growing momentum in these areas. In 4Q17, a third of the new model subscriptions were new to the company.