Reconciliation of GAAP financial measures to non-GAAP financial measures
(In millions, except per share data)
To supplement our consolidated financial statements presented on a GAAP basis, Autodesk provides investors with certain non-GAAP measures including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share and billings. Excluding billings, these non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, restructuring charges, amortization of purchased intangibles, gain and loss on strategic investments, and related income tax expenses. In the case of billings, we reconcile to revenue by adjusting for the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) during the period and other discounts. See our reconciliation of GAAP financial measures to non-GAAP financial measures herein. We believe these exclusions are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future, as well as to facilitate comparisons with our historical operating results. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of Autodesk's underlying operational results and trends and our marketplace performance. For example, non-GAAP results are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results. In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for our planning and forecasting of future periods.
There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP in the United States. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release.
| Three Months Ended October 31, | Nine Months Ended October 31, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| GAAP cost of license and other revenue | $ | 51.9 | $ | 43.4 | $ | 154.6 | $ | 130.6 | ||||||||
| Stock-based compensation expense | (1.2 | ) | (0.9 | ) | (3.2 | ) | (2.7 | ) | ||||||||
| Amortization of developed technology | (11.9 | ) | (9.7 | ) | (37.1 | ) | (29.5 | ) | ||||||||
| Non-GAAP cost of license and other revenue | $ | 38.8 | $ | 32.8 | $ | 114.3 | $ | 98.4 | ||||||||
| GAAP cost of subscription revenue | $ | 34.1 | $ | 23.7 | $ | 98.0 | $ | 71.8 | ||||||||
| Stock-based compensation expense | (1.1 | ) | (0.5 | ) | (2.9 | ) | (1.6 | ) | ||||||||
| Amortization of developed technology | (1.2 | ) | (1.1 | ) | (3.5 | ) | (3.1 | ) | ||||||||
| Non-GAAP cost of subscription revenue | $ | 31.8 | $ | 22.1 | $ | 91.6 | $ | 67.1 | ||||||||
| GAAP gross profit | $ | 532.0 | $ | 488.1 | $ | 1,595.0 | $ | 1,484.9 | ||||||||
| Stock-based compensation expense | 2.3 | 1.4 | 6.1 | 4.3 | ||||||||||||
| Amortization of developed technology | 13.1 | 10.8 | 40.6 | 32.6 | ||||||||||||
| Non-GAAP gross profit | $ | 547.4 | $ | 500.3 | $ | 1,641.7 | $ | 1,521.8 | ||||||||
| GAAP marketing and sales | $ | 245.1 | $ | 203.4 | $ | 708.1 | $ | 610.3 | ||||||||
| Stock-based compensation expense | (19.4 | ) | (14.5 | ) | (51.0 | ) | (42.5 | ) | ||||||||
| Non-GAAP marketing and sales | $ | 225.7 | $ | 188.9 | $ | 657.1 | $ | 567.8 | ||||||||
| GAAP research and development | $ | 183.9 | $ | 149.0 | $ | 533.7 | $ | 448.7 | ||||||||
| Stock-based compensation expense | (14.7 | ) | (10.2 | ) | (39.3 | ) | (31.3 | ) | ||||||||
| Non-GAAP research and development | $ | 169.2 | $ | 138.8 | $ | 494.4 | $ | 417.4 | ||||||||
| GAAP general and administrative | $ | 78.9 | $ | 55.8 | $ | 212.9 | $ | 158.8 | ||||||||
| Stock-based compensation expense | (6.7 | ) | (5.5 | ) | (20.1 | ) | (18.0 | ) | ||||||||
| Non-GAAP general and administrative | $ | 72.2 | $ | 50.3 | $ | 192.8 | $ | 140.8 | ||||||||
| GAAP amortization of purchased intangibles | $ | 9.5 | $ | 7.4 | $ | 30.5 | $ | 27.5 | ||||||||
| Amortization of purchased intangibles | $ | (9.5 | ) | $ | (7.4 | ) | $ | (30.5 | ) | $ | (27.5 | ) | ||||
| Non-GAAP Amortization of purchased intangibles | $ | — | $ | — | $ | — | $ | — | ||||||||
| GAAP restructuring charges (benefits), net | $ | — | $ | 4.4 | $ | 3.1 | $ | 6.5 | ||||||||
| Restructuring (charges) benefits | — | (4.4 | ) | (3.1 | ) | (6.5 | ) | |||||||||
| Non-GAAP restructuring charges (benefits), net | $ | — | $ | — | $ | — | $ | — | ||||||||
| GAAP operating expenses | $ | 517.4 | $ | 420.0 | $ | 1,488.3 | $ | 1,251.8 | ||||||||
| Stock-based compensation expense | (40.8 | ) | (30.2 | ) | (110.4 | ) | (91.8 | ) | ||||||||
| Amortization of purchased intangibles | (9.5 | ) | (7.4 | ) | (30.5 | ) | (27.5 | ) | ||||||||
| Restructuring (charges) benefits | — | (4.4 | ) | (3.1 | ) | (6.5 | ) | |||||||||
| Non-GAAP operating expenses | $ | 467.1 | $ | 378.0 | $ | 1,344.3 | $ | 1,126.0 | ||||||||
| GAAP income from operations | $ | 14.6 | $ | 68.1 | $ | 106.7 | $ | 233.1 | ||||||||
| Stock-based compensation expense | 43.1 | 31.6 | 116.5 | 96.1 | ||||||||||||
| Amortization of developed technology | 13.1 | 10.8 | 40.6 | 32.6 | ||||||||||||
| Amortization of purchased intangibles | 9.5 | 7.4 | 30.5 | 27.5 | ||||||||||||
| Restructuring charges (benefits) | — | 4.4 | 3.1 | 6.5 | ||||||||||||
| Non-GAAP income from operations | $ | 80.3 | $ | 122.3 | $ | 297.4 | $ | 395.8 | ||||||||
| GAAP interest and other income, net | $ | (3.0 | ) | $ | 1.1 | $ | (16.6 | ) | $ | (9.5 | ) | |||||
| Loss (gain) on strategic investments | 0.7 | (0.3 | ) | 7.6 | 1.0 | |||||||||||
| Non-GAAP interest and other income, net | $ | (2.3 | ) | $ | 0.8 | $ | (9.0 | ) | $ | (8.5 | ) | |||||
| GAAP provision for income taxes | $ | (0.9 | ) | $ | (11.6 | ) | $ | (19.8 | ) | $ | (48.7 | ) | ||||
| Discrete GAAP tax provision items | (4.5 | ) | (3.0 | ) | (9.2 | ) | (2.3 | ) | ||||||||
| Income tax effect of non-GAAP adjustments | (14.9 | ) | (14.2 | ) | (45.9 | ) | (43.9 | ) | ||||||||
| Non-GAAP provision for income tax | $ | (20.3 | ) | $ | (28.8 | ) | $ | (74.9 | ) | $ | (94.9 | ) | ||||
| GAAP net income | $ | 10.7 | $ | 57.6 | $ | 70.3 | $ | 174.9 | ||||||||
| Stock-based compensation expense | 43.1 | 31.6 | 116.5 | 96.1 | ||||||||||||
| Amortization of developed technology | 13.1 | 10.8 | 40.6 | 32.6 | ||||||||||||
| Amortization of purchased intangibles | 9.5 | 7.4 | 30.5 | 27.5 | ||||||||||||
| Restructuring charges (benefits) | — | 4.4 | 3.1 | 6.5 | ||||||||||||
| Loss (gain) on strategic investments | 0.7 | (0.3 | ) | 7.6 | 1.0 | |||||||||||
| Discrete GAAP tax provision items | (4.5 | ) | (3.0 | ) | (9.2 | ) | (2.3 | ) | ||||||||
| Income tax effect of non-GAAP adjustments | (14.9 | ) | (14.2 | ) | (45.9 | ) | (43.9 | ) | ||||||||
| Non-GAAP net income | $ | 57.7 | $ | 94.3 | $ | 213.5 | $ | 292.4 | ||||||||
| GAAP diluted net income per share | $ | 0.05 | $ | 0.25 | $ | 0.30 | $ | 0.77 | ||||||||
| Stock-based compensation expense | 0.19 | 0.14 | 0.50 | 0.42 | ||||||||||||
| Amortization of developed technology | 0.06 | 0.04 | 0.18 | 0.14 | ||||||||||||
| Amortization of purchased intangibles | 0.04 | 0.03 | 0.13 | 0.12 | ||||||||||||
| Restructuring charges (benefits) | — | 0.02 | 0.01 | 0.03 | ||||||||||||
| Loss (gain) on strategic investments | — | — | 0.03 | — | ||||||||||||
| Discrete GAAP tax provision items | (0.02 | ) | (0.01 | ) | (0.04 | ) | (0.01 | ) | ||||||||
| Income tax effect of non-GAAP adjustments | (0.07 | ) | (0.06 | ) | (0.19 | ) | (0.19 | ) | ||||||||
| Non-GAAP diluted net income per share | $ | 0.25 | $ | 0.41 | $ | 0.92 | $ | 1.28 | ||||||||
|
Autodesk, Inc. |
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| Other Supplemental Financial Information (a) | ||||||||||||||||||
| Fiscal Year 2015 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2015 | |||||||||||||
| Financial Statistics ($ in millions, except per share data): | ||||||||||||||||||
| Total Net Revenue: | $ | 593 | $ | 637 | $ | 618 | $ | 1,848 | ||||||||||
| License and Other Revenue | $ | 316 | $ | 350 | $ | 321 | $ | 987 | ||||||||||
| Subscription Revenue | $ | 276 | $ | 287 | $ | 298 | $ | 861 | ||||||||||
| GAAP Gross Margin | 87 | % | 86 | % | 86 | % | 86 | % | ||||||||||
| Non-GAAP Gross Margin (1)(2) | 89 | % | 89 | % | 89 | % | 89 | % | ||||||||||
| GAAP Operating Expenses | $ | 472 | $ | 499 | $ | 517 | $ | 1,488 | ||||||||||
| GAAP Operating Margin | 7 | % | 8 | % | 2 | % | 6 | % | ||||||||||
| GAAP Net Income | $ | 28 | $ | 31 | $ | 11 | $ | 70 | ||||||||||
| GAAP Diluted Net Income Per Share (b) | $ | 0.12 | $ | 0.13 | $ | 0.05 | $ | 0.30 | ||||||||||
| Non-GAAP Operating Expenses (1)(3) | $ | 427 | $ | 451 | $ | 467 | $ | 1,344 | ||||||||||
| Non-GAAP Operating Margin (1)(4) | 17 | % | 18 | % | 13 | % | 16 | % | ||||||||||
| Non-GAAP Net Income (1)(5) | $ | 74 | $ | 82 | $ | 58 | $ | 214 | ||||||||||
| Non-GAAP Diluted Net Income Per Share (1)(6)(b) | $ | 0.32 | $ | 0.35 | $ | 0.25 | $ | 0.92 | ||||||||||
| Total Cash and Marketable Securities | $ | 2,388 | $ | 2,169 | $ | 2,157 | $ | 2,157 | ||||||||||
| Days Sales Outstanding | 50 | 52 | 55 | 55 | ||||||||||||||
| Capital Expenditures | $ | 15 | $ | 17 | $ | 28 | $ | 60 | ||||||||||
| Cash Flow from Operating Activities | $ | 219 | $ | 96 | $ | 136 | $ | 451 | ||||||||||
| GAAP Depreciation, Amortization and Accretion | $ | 36 | $ | 37 | $ | 37 | $ | 110 | ||||||||||
| Deferred Subscription Revenue Balance | $ | 848 | $ | 839 | $ | 839 | $ | 839 | ||||||||||
| Revenue by Geography: | ||||||||||||||||||
| Americas | $ | 206 | $ | 223 | $ | 231 | $ | 660 | ||||||||||
| Europe, Middle East and Africa | $ | 226 | $ | 244 | $ | 238 | $ | 707 | ||||||||||
| Asia Pacific | $ | 161 | $ | 170 | $ | 149 | $ | 481 | ||||||||||
| % of Total Rev from Emerging Economies | 13 | % | 15 | % | 15 | % | 15 | % | ||||||||||
| Revenue by Segment: | ||||||||||||||||||
| Platform Solutions and Emerging Business | $ | 212 | $ | 208 | $ | 188 | $ | 608 | ||||||||||
| Architecture, Engineering and Construction | $ | 196 | $ | 218 | $ | 217 | $ | 631 | ||||||||||
| Manufacturing | $ | 147 | $ | 168 | $ | 170 | $ | 485 | ||||||||||
| Media and Entertainment | $ | 38 | $ | 44 | $ | 43 | $ | 124 | ||||||||||
| Other Revenue Statistics: | ||||||||||||||||||
| % of Total Rev from Flagship | 50 | % | 48 | % | 47 | % | 48 | % | ||||||||||
| % of Total Rev from Suites | 35 | % | 36 | % | 36 | % | 36 | % | ||||||||||
| % of Total Rev from New and Adjacent | 14 | % | 16 | % | 17 | % | 16 | % | ||||||||||
| % of Total Rev from AutoCAD and AutoCAD LT | 32 | % | 29 | % | 27 | % | 29 | % | ||||||||||
|
Favorable (Unfavorable) Impact of U.S. Dollar Translation
Relative to
|
||||||||||||||||||
| FX Impact on Total Net Revenue | $ | (9 | ) | $ | — | $ | (4 | ) | $ | (13 | ) | |||||||
| FX Impact on Cost of Revenue and Total Operating Expenses | $ | 2 | $ | (2 | ) | $ | 3 | $ | 3 | |||||||||
| FX Impact on Operating Income | $ | (7 | ) | $ | (2 | ) | $ | (1 | ) | $ | (10 | ) | ||||||
| Gross Margin by Segment: | ||||||||||||||||||
| Platform Solutions and Emerging Business | $ | 191 | $ | 185 | $ | 167 | $ | 544 | ||||||||||
| Architecture, Engineering and Construction | $ | 176 | $ | 196 | $ | 194 | $ | 566 | ||||||||||
| Manufacturing | $ | 133 | $ | 152 | $ | 153 | $ | 437 | ||||||||||
| Media and Entertainment | $ | 29 | $ | 32 | $ | 32 | $ | 93 | ||||||||||
| Unallocated amounts | $ | (15 | ) | $ | (16 | ) | $ | (15 | ) | $ | (45 | ) | ||||||
| Common Stock Statistics (in millions): | ||||||||||||||||||
| Common Shares Outstanding | 227.5 | 227.2 | 227.2 | 227.2 | ||||||||||||||
| Fully Diluted Weighted Average Shares Outstanding | 231.6 | 232.4 | 231.5 | 231.9 | ||||||||||||||
| Shares Repurchased | 2.0 | 1.9 | 1.9 | 5.8 | ||||||||||||||
| Subscriptions (in millions): | ||||||||||||||||||
| Total Subscriptions (c) | 1.94 | 2.01 | 2.13 | 2.13 | ||||||||||||||
|
(a) Totals may not agree with the sum of the components due to rounding. |
| (b) Earnings per share were computed independently for each of the periods presented; therefore the sum of the earnings per share amounts for the quarters may not equal the total for the year. |
| (c) Total Subscriptions consists of subscriptions from our maintenance, desktop, cloud service and enterprise license offerings that are active as of the quarter end date. For certain cloud based and enterprise license offerings, subscriptions represent the monthly average activity within the last three months of the quarter end date. Total subscriptions do not include data from education offerings, consumer product offerings, certain Creative Finishing product offerings, Autodesk Buzzsaw, Autodesk Constructware and third party products. Subscriptions acquired with the acquisition of a business are captured once the data conforms to our subscription count methodology and when added, may cause variability in the quarterly comparisons of this calculation. |
|
|
| (1) To supplement our consolidated financial statements presented on a GAAP basis, Autodesk provides investors with certain non-GAAP measures including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share and billings. Excluding billings, these non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, restructuring charges, amortization of purchased intangibles, gain and loss on strategic investments, and related income tax expenses. In the case of billings, we reconcile to revenue by adjusting for the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) during the period and other discounts. See our reconciliation of GAAP financial measures to non-GAAP financial measures herein. We believe these exclusions are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future, as well as to facilitate comparisons with our historical operating results. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of Autodesk's underlying operational results and trends and our marketplace performance. For example, non-GAAP results are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results. In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for our planning and forecasting of future periods. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP in the United States. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying Autodesk's press release. |
| QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2015 | ||||||||||||||
| (2) GAAP Gross Margin | 87 | % | 86 | % | 86 | % | 86 | % | ||||||||||
| Stock-based compensation expense | — | % | — | % | — | % | — | % | ||||||||||
| Amortization of developed technology | 2 | % | 3 | % | 3 | % | 3 | % | ||||||||||
| Non-GAAP Gross Margin | 89 | % | 89 | % | 89 | % | 89 | % | ||||||||||
| (3) GAAP Operating Expenses | $ | 472 | $ | 499 | $ | 517 | $ | 1,488 | ||||||||||
| Stock-based compensation expense | (32 | ) | (38 | ) | (41 | ) | (110 | ) | ||||||||||
| Amortization of purchased intangibles | (11 | ) | (10 | ) | (10 | ) | (31 | ) | ||||||||||
| Restructuring (charges) benefits, net | (2 | ) | (1 | ) | — | (3 | ) | |||||||||||
| Non-GAAP Operating Expenses | $ | 427 | $ | 451 | $ | 467 | $ | 1,344 | ||||||||||
| (4) GAAP Operating Margin | 7 | % | 8 | % | 2 | % | 6 | % | ||||||||||
| Stock-based compensation expense | 6 | % | 6 | % | 7 | % | 6 | % | ||||||||||
| Amortization of developed technology | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||
| Amortization of purchased intangibles | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||
| Restructuring charges (benefits), net | — | % | — | % | — | % | — | % | ||||||||||
|
Non-GAAP Operating Margin |
17 | % | 18 | % | 13 | % | 16 | % | ||||||||||
| (5) GAAP Net Income | $ | 28 | $ | 31 | $ | 11 | $ | 70 | ||||||||||
| Stock-based compensation expense | 34 | 40 | 43 | 117 | ||||||||||||||
| Amortization of developed technology | 13 | 15 | 13 | 41 | ||||||||||||||
| Amortization of purchased intangibles | 11 | 10 | 10 | 31 | ||||||||||||||
| Restructuring charges (benefits), net | 2 | 1 | — | 3 | ||||||||||||||
| Loss (gain) on strategic investments | 4 | 3 | 1 | 8 | ||||||||||||||
| Discrete GAAP tax provision items | (2 | ) | (3 | ) | (5 | ) | (9 | ) | ||||||||||
| Income tax effect of non-GAAP adjustments | (16 | ) | (15 | ) | (15 | ) | (46 | ) | ||||||||||
| Non-GAAP Net Income | $ | 74 | $ | 82 | $ | 58 | $ | 214 | ||||||||||
| (6) GAAP Diluted Net Income Per Share | $ | 0.12 | $ | 0.13 | $ | 0.05 | $ | 0.30 | ||||||||||
| Stock-based compensation expense | 0.14 | 0.18 | 0.19 | 0.50 | ||||||||||||||
| Amortization of developed technology | 0.06 | 0.06 | 0.06 | 0.18 | ||||||||||||||
| Amortization of purchased intangibles | 0.05 | 0.04 | 0.04 | 0.13 | ||||||||||||||
| Restructuring charges (benefits), net | 0.01 | — | — | 0.01 | ||||||||||||||
| Loss (gain) on strategic investments | 0.02 | 0.01 | — | 0.03 | ||||||||||||||
| Discrete GAAP tax provision items | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.04 | ) | ||||||||||
| Income tax effect of non-GAAP adjustments | (0.07 | ) | (0.06 | ) | (0.07 | ) | (0.19 | ) | ||||||||||
| Non-GAAP Diluted Net Income Per Share | $ | 0.32 | $ | 0.35 | $ | 0.25 | $ | 0.92 | ||||||||||
| Reconciliation for Billings: | ||||||||||||||||||
| Q115 | Q215 | Q315 | ||||||||||||||||
| Year over year change in GAAP Net Revenue | 4 | % | 13 | % | 11 | % | ||||||||||||
| Change in deferred revenue | 8 | % | 12 | % | 13 | % | ||||||||||||
| Change in acquisition related deferred revenue and other | (2 | )% | 2 | % | 1 | % | ||||||||||||
| Year over year change in Billings | 10 | % | 27 | % | 25 | % | ||||||||||||
| Reconciliation for Guidance: | ||||||||||||||||||
| The following is a reconciliation of anticipated fiscal 2015 GAAP and non-GAAP operating margins: | ||||||||||||||||||
| Fiscal 2015 | ||||||||||||||||||
| GAAP operating margin | 4.5 | % | 5.0 | % | ||||||||||||||
| Stock-based compensation expense | 6.5 | % | 6.5 | % | ||||||||||||||
| Amortization of purchased intangibles | 4.0 | % | 4.0 | % | ||||||||||||||
| Restructuring charges | — | % | — | % | ||||||||||||||
| Non-GAAP operating margin | 15.0 | % | 15.5 | % | ||||||||||||||
