Autodesk (ADSK) Tops Q4 EPS by 3c; Offers Q1 & FY20 EPS/Revenue Guidance

Autodesk (NASDAQ: ADSK) reported Q4 EPS of $0.92, $0.03 better than the analyst estimate of $0.89. Revenue for the quarter came in at $899.3 million versus the consensus estimate of $890.19 million.

Fourth Quarter Fiscal 2020 Financial Highlights

• Total ARR was $3.43 billion, an increase of 25 percent as reported, and 26 percent on a constant currency basis. Acquisitions from the fourth quarter of last year contributed $126 million or 3 percentage points of the growth. On a sequential basis, total ARR increased 6 percent as reported, and 7 percent on a constant currency basis.
• Subscription plan ARR was $3.11 billion, an increase of 41 percent as reported, and 43 percent on a constant currency basis. Acquisitions from the fourth quarter of last year contributed $126 million or 4 percentage points of the growth. On a sequential basis, subscription plan ARR increased 9 percent as reported, and on a constant currency basis. Subscription plan ARR includes $639 million related to the maintenance-to-subscription (M2S) program.
• Maintenance plan ARR was $320 million, a decrease of 42 percent as reported, and on a constant currency basis. On a sequential basis, maintenance plan ARR decreased 12 percent as reported, and on a constant currency basis.
• Core ARR increased 21 percent to $3.17 billion. On a sequential basis, core ARR increased 6 percent.
• Cloud ARR increased 102 percent to $255 million. Acquisitions from the fourth quarter of last year contributed $126 million or 72 percentage points of the growth. On a sequential basis, total cloud ARR increased 10 percent.
• Billings increased 43 percent to $1.49 billion.
• Total revenue was $899 million, an increase of 22 percent as reported, and 23 percent on a constant currency basis. Acquisitions from the fourth quarter of last year contributed $32 million or 3 percentage points of the growth.
• Net revenue retention rate was within the range of 110 to 120 percent.
• Total recurring revenue in the fourth quarter was 95 percent of total revenue, up 2 percentage points from the fourth quarter last year.
• GAAP operating income was $134 million compared to $40 million in the fourth quarter last year. GAAP operating margin was 15 percent, up 9 percentage points.
• Total non-GAAP operating income was $259 million compared to $139 million in the fourth quarter last year. Non-GAAP operating margin was 29 percent, up 10 percentage points.
• GAAP diluted net income per share was $0.59, compared to GAAP diluted net income per share of $0.29 in the fourth quarter last year.
• Non-GAAP diluted net income per share was $0.92, compared to non-GAAP diluted net income per share of $0.46 in the fourth quarter last year.
• Deferred revenue increased 44 percent to $3.01 billion. Unbilled deferred revenue was $550 million, a decrease of $41 million compared to the fourth quarter of last year. Remaining performance obligations (RPO), or the sum of total billed and unbilled deferred revenue, totaled $3.56 billion, an increase of 33 percent. Current RPO totaled $2.37 billion, up 23 percent.
• Cash flow from operating activities was $698 million, an increase of $387 million compared to the fourth quarter last year. Free cash flow was $684 million, an increase of $390 million compared to the fourth quarter last year

"We ended fiscal 2020 on a very strong note with revenue, earnings, and free cash flow coming in above expectations. We are entering the sustainable growth phase of our subscription journey with great momentum," said Andrew Anagnost, Autodesk president and CEO. "Our construction business had a landmark year, we continue to gain share in manufacturing, and are making steady progress in monetizing non-compliant users. We are highly confident in our long-term growth drivers and fiscal 2023 targets."

"We delivered strong results across the board in fiscal 2020 and are reiterating our fiscal 2021 and 2023 targets," said Scott Herren, Autodesk CFO. "In fiscal 2020, we delivered ARR growth of 25 percent while expanding non-GAAP operating margin by 12 percentage points. Our resilient business model combined with multiple growth drivers, positions us well to deliver on our goals."

GUIDANCE:

Autodesk sees Q1 2021 EPS of $0.80-$0.86, versus the consensus of $0.88. Autodesk sees Q1 2021 revenue of $880-895 million, versus the consensus of $909.99 million.

Autodesk sees FY2021 EPS of $4.21-$4.44, versus the consensus of $4.41. Autodesk sees FY2021 revenue of $3.93-3.99 million, versus the consensus of $3.98 million.

For earnings history and earnings-related data on Autodesk (ADSK) click here.

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