(1) As Autodesk elected to early adopt ASU 2016-09 in the second quarter of fiscal 2017, we are required to reflect any adjustments as of February 1, 2016, the beginning of the annual period that includes the interim period of adoption. As a result of recording forfeitures as they occur, our stock based compensation expense decreased by $5.3 million for the three months ended April 30, 2016. Incorporating these non-cash, GAAP only, revisions results in a GAAP net loss of $167.7 million, and a GAAP diluted net loss per share of $0.75 for the three months ended April 30, 2016, which is reflected in the results for the nine months ended October 31, 2016 above.
| Autodesk, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In millions) | ||||||||
|
October 31,
|
January 31,
|
|||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,436.5 | $ | 1,353.0 | ||||
| Marketable securities | 532.4 | 897.9 | ||||||
| Accounts receivable, net | 259.8 | 653.6 | ||||||
| Prepaid expenses and other current assets | 103.4 | 88.6 | ||||||
| Total current assets | 2,332.1 | 2,993.1 | ||||||
| Marketable securities | 455.0 | 532.3 | ||||||
| Computer equipment, software, furniture and leasehold improvements, net | 168.3 | 169.3 | ||||||
| Developed technologies, net | 53.9 | 70.8 | ||||||
| Goodwill | 1,557.3 | 1,535.0 | ||||||
| Deferred income taxes, net | 49.6 | 9.2 | ||||||
| Other assets | 213.0 | 205.6 | ||||||
| Total assets | $ | 4,829.2 | $ | 5,515.3 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 102.8 | $ | 119.9 | ||||
| Accrued compensation | 187.6 | 243.3 | ||||||
| Accrued income taxes | 85.9 | 29.4 | ||||||
| Deferred revenue | 1,099.1 | 1,068.9 | ||||||
| Other accrued liabilities | 122.2 | 129.5 | ||||||
| Total current liabilities | 1,597.6 | 1,591.0 | ||||||
| Long term deferred revenue | 433.9 | 450.3 | ||||||
| Long term income taxes payable | 40.0 | 161.4 | ||||||
| Long term deferred income taxes | 75.9 | 67.7 | ||||||
| Long term notes payable, net | 1,489.9 | 1,487.7 | ||||||
| Other liabilities | 131.3 | 137.6 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock | — | — | ||||||
| Common stock and additional paid-in capital | 1,882.8 | 1,821.5 | ||||||
| Accumulated other comprehensive loss | (187.5 | ) | (121.1 | ) | ||||
| Accumulated deficit | (634.7 | ) | (80.8 | ) | ||||
| Total stockholders’ equity | 1,060.6 | 1,619.6 | ||||||
| Total liabilities and stockholders' equity | $ | 4,829.2 | $ | 5,515.3 | ||||
| Autodesk, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (In millions) | ||||||||
|
Nine Months Ended October 31, |
||||||||
| 2016 | 2015 | |||||||
| (Unaudited) | ||||||||
| Operating activities: | ||||||||
| Net loss | $ | (408.7 | ) | $ | (293.3 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation, amortization and accretion | 104.5 | 109.7 | ||||||
| Stock-based compensation expense | 162.5 | 141.1 | ||||||
| Deferred income taxes | (39.6 | ) | 221.9 | |||||
| Restructuring charges and other facility exit costs, net | 71.5 | — | ||||||
| Other operating activities | 3.4 | (10.6 | ) | |||||
| Changes in operating assets and liabilities, net of acquisitions: | ||||||||
| Accounts receivable | 393.8 | 97.4 | ||||||
| Prepaid expenses and other current assets | (12.7 | ) | (5.5 | ) | ||||
| Accounts payable and accrued liabilities | (71.9 | ) | (75.1 | ) | ||||
| Deferred revenue | 15.6 | 54.5 | ||||||
| Accrued income taxes | (64.3 | ) | 4.0 | |||||
| Net cash provided by operating activities | 154.1 | 244.1 | ||||||
| Investing activities: | ||||||||
| Purchases of marketable securities | (1,106.4 | ) | (1,827.9 | ) | ||||
| Sales of marketable securities | 544.7 | 263.0 | ||||||
| Maturities of marketable securities | 1,012.6 | 970.7 | ||||||
| Capital expenditures | (65.1 | ) | (41.8 | ) | ||||
| Acquisitions, net of cash acquired | (85.2 | ) | (104.6 | ) | ||||
| Other investing activities | (14.8 | ) | (15.5 | ) | ||||
| Net cash provided by (used in) investing activities | 285.8 | (756.1 | ) | |||||
| Financing activities: | ||||||||
| Proceeds from issuance of common stock, net of issuance costs | 102.2 | 99.3 | ||||||
| Taxes paid related to net share settlement of equity awards | (58.9 | ) | (42.3 | ) | ||||
| Repurchase and retirement of common stock | (397.6 | ) | (357.7 | ) | ||||
| Proceeds from debt, net of discount | — | 748.3 | ||||||
| Other financing activities | — | (6.3 | ) | |||||
| Net cash (used in) provided by financing activities | (354.3 | ) | 441.3 | |||||
| Effect of exchange rate changes on cash and cash equivalents | (2.1 | ) | (2.4 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 83.5 | (73.1 | ) | |||||
| Cash and cash equivalents at beginning of the period | 1,353.0 | 1,410.6 | ||||||
| Cash and cash equivalents at end of the period | $ | 1,436.5 | $ | 1,337.5 | ||||
| Autodesk, Inc. | ||||||||||||||||
| 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 non-GAAP diluted shares used in per share calculation. These non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, restructuring charges and other facility exit costs, amortization of amortization of developed technology, amortization of purchased intangibles, gain and loss on strategic investments, and related income tax expenses. 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 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. | ||||||||||||||||
| The following table shows Autodesk's non-GAAP results reconciled to GAAP results included in this release. | ||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| GAAP cost of subscription revenue | $ | 35.1 | $ | 38.0 | $ | 113.1 | $ | 116.7 | ||||||||
| Stock-based compensation expense | (1.7 | ) | (1.5 | ) | (5.2 | ) | (4.1 | ) | ||||||||
| Amortization of developed technology | (0.2 | ) | (0.5 | ) | (0.6 | ) | (2.4 | ) | ||||||||
| Non-GAAP cost of subscription revenue | $ | 33.2 | $ | 36.0 | $ | 107.3 | $ | 110.2 | ||||||||
| GAAP cost of license and other revenue | $ | 46.4 | $ | 53.0 | $ | 145.9 | $ | 159.1 | ||||||||
| Stock-based compensation expense | (1.8 | ) | (1.7 | ) | (5.1 | ) | (4.4 | ) | ||||||||
| Amortization of developed technology | (10.2 | ) | (11.1 | ) | (31.4 | ) | (34.7 | ) | ||||||||
| Non-GAAP cost of license and other revenue | $ | 34.4 | $ | 40.2 | $ | 109.4 | $ | 120.0 | ||||||||
| GAAP gross profit | $ | 408.1 | $ | 508.8 | $ | 1,293.2 | $ | 1,580.0 | ||||||||
| Stock-based compensation expense | 3.5 | 3.2 | 10.3 | 8.5 | ||||||||||||
| Amortization of developed technology | 10.4 | 11.6 | 32.0 | 37.1 | ||||||||||||
| Non-GAAP gross profit | $ | 422.0 | $ | 523.6 | $ | 1,335.5 | $ | 1,625.6 | ||||||||
| GAAP marketing and sales | $ | 255.0 | $ | 243.4 | $ | 738.9 | $ | 738.1 | ||||||||
| Stock-based compensation expense | (24.2 | ) | (22.2 | ) | (69.0 | ) | (61.2 | ) | ||||||||
| Non-GAAP marketing and sales | $ | 230.8 | $ | 221.2 | $ | 669.9 | $ | 676.9 | ||||||||
| GAAP research and development | $ | 192.6 | $ | 197.9 | $ | 579.1 | $ | 585.5 | ||||||||
| Stock-based compensation expense | (20.9 | ) | (17.5 | ) | (60.0 | ) | (49.9 | ) | ||||||||
| Non-GAAP research and development | $ | 171.7 | $ | 180.4 | $ | 519.1 | $ | 535.6 | ||||||||
| GAAP general and administrative | $ | 70.4 | $ | 74.2 | $ | 213.7 | $ | 220.2 | ||||||||
| Stock-based compensation expense | (8.0 | ) | (7.3 | ) | (23.2 | ) | (21.5 | ) | ||||||||
| Non-GAAP general and administrative | $ | 62.4 | $ | 66.9 | $ | 190.5 | $ | 198.7 | ||||||||
| GAAP amortization of purchased intangibles | $ | 6.8 | $ | 8.1 | $ | 22.5 | $ | 25.2 | ||||||||
| Amortization of purchased intangibles | (6.8 | ) | (8.1 | ) | (22.5 | ) | (25.2 | ) | ||||||||
| Non-GAAP amortization of purchased intangibles | $ | — | $ | — | $ | — | $ | — | ||||||||
| GAAP restructuring charges and other facility exit costs, net | $ | 3.2 | $ | — | $ | 71.5 | $ | — | ||||||||
| Restructuring charges and other facility exit costs, net | (3.2 | ) | — | (71.5 | ) | — | ||||||||||
| Non-GAAP restructuring charges and other facility exit costs, net | $ | — | $ | — | $ | — | $ | — | ||||||||
| GAAP operating expenses | $ | 528.0 | $ | 523.6 | $ | 1,625.7 | $ | 1,569.0 | ||||||||
| Stock-based compensation expense | (53.1 | ) | (47.0 | ) | (152.2 | ) | (132.6 | ) | ||||||||
| Amortization of purchased intangibles | (6.8 | ) | (8.1 | ) | (22.5 | ) | (25.2 | ) | ||||||||
| Restructuring charges and other facility exit costs, net | (3.2 | ) | — | (71.5 | ) | — | ||||||||||
| Non-GAAP operating expenses | $ | 464.9 | $ | 468.5 | $ | 1,379.5 | $ | 1,411.2 | ||||||||
| GAAP (loss) income from operations | $ | (119.9 | ) | $ | (14.8 | ) | $ | (332.5 | ) | $ | 11.0 | |||||
| Stock-based compensation expense | 56.6 | 50.2 | 162.5 | 141.1 | ||||||||||||
| Amortization of developed technology | 10.4 | 11.6 | 32.0 | 37.1 | ||||||||||||
| Amortization of purchased intangibles | 6.8 | 8.1 | 22.5 | 25.2 | ||||||||||||
| Restructuring charges and other facility exit costs, net | 3.2 | — | 71.5 | — | ||||||||||||
| Non-GAAP (loss) income from operations | $ | (42.9 | ) | $ | 55.1 | $ | (44.0 | ) | $ | 214.4 | ||||||
| GAAP interest and other expense, net | $ | (9.4 | ) | $ | (7.7 | ) | $ | (23.1 | ) | $ | (10.8 | ) | ||||
| (Gain) loss on strategic investments | (0.4 | ) | 0.1 | (0.6 | ) | (3.3 | ) | |||||||||
| Non-GAAP interest and other expense, net | $ | (9.8 | ) | $ | (7.6 | ) | $ | (23.7 | ) | $ | (14.1 | ) | ||||
| GAAP provision for income taxes | $ | (13.5 | ) | $ | (21.3 | ) | $ | (53.1 | ) | $ | (293.5 | ) | ||||
| Discrete GAAP tax items | (9.0 | ) | 1.2 | 4.0 | 2.4 | |||||||||||
| Establishment of valuation allowance on deferred tax assets | — | — | — | 230.9 | ||||||||||||
| Income tax effect of non-GAAP adjustments | 36.2 | 5.7 | 66.7 | 6.1 | ||||||||||||
| Non-GAAP benefit (provision) for income tax | $ | 13.7 | $ | (14.4 | ) | $ | 17.6 | $ | (54.1 | ) | ||||||
| GAAP net loss | $ | (142.8 | ) | $ | (43.8 | ) | $ | (408.7 | ) | $ | (293.3 | ) | ||||
| Stock-based compensation expense | 56.6 | 50.2 | 162.5 | 141.1 | ||||||||||||
| Amortization of developed technology | 10.4 | 11.6 | 32.0 | 37.1 | ||||||||||||
| Amortization of purchased intangibles | 6.8 | 8.1 | 22.5 | 25.2 | ||||||||||||
| Restructuring charges and other facility exit costs, net | 3.2 | — | 71.5 | — | ||||||||||||
| (Gain) loss on strategic investments | (0.4 | ) | 0.1 | (0.6 | ) | (3.3 | ) | |||||||||
| Discrete GAAP tax items | (9.0 | ) | 1.2 | 4.0 | 2.4 | |||||||||||
| Establishment of valuation allowance on deferred tax assets | — | — | — | 230.9 | ||||||||||||
| Income tax effect of non-GAAP adjustments | 36.2 | 5.7 | 66.7 | 6.1 | ||||||||||||
| Non-GAAP net (loss) income | $ | (39.0 | ) | $ | 33.1 | $ | (50.1 | ) | $ | 146.2 | ||||||
| GAAP diluted net loss per share (1) | $ | (0.64 | ) | $ | (0.19 | ) | $ | (1.83 | ) | $ | (1.29 | ) | ||||
| Stock-based compensation expense | 0.25 | 0.22 | 0.72 | 0.61 | ||||||||||||
| Amortization of developed technology | 0.05 | 0.05 | 0.15 | 0.16 | ||||||||||||
| Amortization of purchased intangibles | 0.03 | 0.03 | 0.10 | 0.11 | ||||||||||||
| Restructuring charges and other facility exit costs, net | 0.01 | — | 0.31 | — | ||||||||||||
| (Gain) loss on strategic investments | — | — | — | (0.01 | ) | |||||||||||
| Discrete GAAP tax items | (0.03 | ) | — | 0.03 | 0.01 | |||||||||||
| Establishment of valuation allowance on deferred tax assets | — | — | — | 1.01 | ||||||||||||
| Income tax effect of non-GAAP adjustments | 0.15 | 0.03 | 0.30 | 0.03 | ||||||||||||
| Non-GAAP diluted net (loss) income per share (1) | $ | (0.18 | ) | $ | 0.14 | $ | (0.22 | ) | $ | 0.63 | ||||||
| GAAP diluted shares used in per share calculation | 222.3 | 225.3 | 223.3 | 226.5 | ||||||||||||
| Shares included in non-GAAP net income per share, but excluded from GAAP net loss per share as they would have been anti-dilutive | — | 3.4 | — | 4.0 | ||||||||||||
| Non-GAAP diluted weighted average shares used in per share calculation | 222.3 | 228.7 | 223.3 | 230.5 | ||||||||||||
