Autodesk Inc (NASDAQ:ADSK) Q4 2017 Earnings Conference Call - Final Transcript
Mar 06, 2018 • 05:00 pm ET
our biggest quarter for large deal activity and we signed a record number of $1-million-plus deals in Q4, over 70 of them, including 14 contracts valued at $5 million or more. Most of these large deals were EBAs. And on average the contract value for EBA renewals increased over 40% compared to the original EBA contract value.
For those of you who might not be as familiar with the history of Autodesk, these large deals stats are quite remarkable, even compared to just 5 or 10 years ago. For our product innovation and forward thinking, Autodesk has evolved to become a trusted partner and thought leader with our customers. Many are now coming to us, seeking our guidance on how to prepare for the confluence of design and make, which is already happening in certain industries.
Moving to spend management, we continued to be able to execute well while keeping spend flat on a constant currency basis for both Q4 and fiscal 2018. The restructuring action we initiated last quarter is allowing us to reallocate our spend to increase investment in areas that drive long-term value while reducing spend and making targeted divestments in other areas. We also remained committed to keeping fiscal 2019 non-GAAP spend flat at a constant currency relative to our fiscal 2018 budget at about $2.2 billion.
Looking at the balance sheet, reported deferred revenue grew 9%. At the same time, unbilled deferred revenue increased by $178 million sequentially, bringing total unbilled deferred revenue to $326 million. As a reminder, this completes the first full-year of moving our enterprise customers to annual billing terms. If we consider total deferred revenue as reported deferred plus unbilled deferred which is a fair comparison for last year, deferred revenue grew more than 25%. Since most of our enterprise customers are on three-year contracts, an entirely new group of enterprise customers will come up for renewal this year and next year. So, the amount of unbilled deferred revenue will continue to grow meaningfully.
Q4 cash flow was stronger than expected, driven by good billings linearity in the quarter. The strength of the Q4 cash flow allowed us to finish the year just in the black, which is also better than expected.
When it comes to capital allocation, our stock repurchase program continues to be primary use of cash and we opportunistically accelerated that program in Q4, buying back roughly 2.4 million shares. At our last investor day, I indicated that we would use the majority of the $1.7 billion cash balance we had available at that time for stock repurchases. Since then, we spent over $900 million on share buybacks. In fact over the past few years, we've reduced our absolute share count by close to 3% and we remain committed for managing dilution and reducing shares outstanding over time.
Before getting into our outlook, I want to touch on two high profile items that are impacting every company, tax reform and ASC 606. With the start of the new