Total subscriptions were 4.33 million, a net increase of 252,000 from the third quarter of fiscal 2019. Subscription plan subscriptions (product, EBA, and cloud) were 3.53 million, a net increase of 418,000 from the third quarter of fiscal 2019, led by new product subscriptions and 110,000 product subscriptions that migrated from maintenance plan subscriptions. Included in total subscription additions and subscription plan additions this quarter is a 127,000 contribution from the fourth quarter acquisitions. Maintenance plan subscriptions were 796,000, a net decrease of 166,000 from the third quarter of fiscal 2019, which includes the 110,000 that migrated to product subscription.
Total recurring revenue in the fourth quarter was 93 percent of total revenue, consistent with the fourth quarter last year.
Revenue in the Americas was $300 million, an increase of 29 percent compared to the fourth quarter last year. Revenue in EMEA was $299 million, an increase of 35 percent compared to the fourth quarter last year as reported, and 31 percent on a constant currency basis. Revenue in APAC was $138 million, an increase of 38 percent compared to the fourth quarter last year as reported, and on a constant currency basis.
Financial Highlights for Fiscal 2019*
- Total ARR increased 34 percent as reported, and 32 percent on a constant currency basis.
- Included in total ARR is a $27 million contribution from the fourth quarter acquisitions, or 1 percentage point of the increase.
- Total ARPS increased 15 percent to $635.
- Included in total ARPS is the negative impact of $13 from the fourth quarter acquisitions, or negative 2 percentage points of the increase.
- Billings increased 22 percent to $2.71 billion.
- Billings includes a $43 million contribution from the fourth quarter acquisitions, or 2 percentage points of the increase.
- Total revenue increased 25 percent to a record $2.57 billion.
- Total revenue includes a $7 million contribution from the fourth quarter acquisitions, and had no impact on the growth percentage.
- Migrated 452,000 maintenance customers to subscription.
- Reached milestone of over 4 million active subscriptions.
- Total deferred revenue increased 18 percent to $2.68 billion.
- Total deferred revenue includes a $97 million contribution from the fourth quarter acquisitions, or 4 percentage points of the increase.
- Free cash flow increased to $310 million, compared to $(50) million in fiscal 2018.
- Recurring revenue increased to 95 percent, compared to 92 percent at the end of fiscal 2018.
*All numbers are compared to fiscal 2018. Starting in the first quarter of fiscal 2020, Autodesk will discontinue quarterly reporting of subscriptions and ARPS.
Business Outlook
The following are forward-looking statements based on current expectations and assumptions, and involve risks and uncertainties some of which are set forth below under "Safe Harbor Statement." Autodesk's business outlook for the first quarter and full year fiscal 2020 assumes, among other things, a continuation of the current economic environment and foreign exchange currency rate environment. A reconciliation between the fiscal 2020 GAAP and non-GAAP estimates is provided below or in the tables following this press release.
First Quarter Fiscal 2020 |
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Q1 FY20 Guidance Metrics | Q1 FY20
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Revenue (in millions) | $735 - $745 |
EPS GAAP | $0.06 - $0.10 |
EPS non-GAAP (1) | $0.44 - $0.48 |
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(1) |
| Non-GAAP earnings per diluted share excludes $0.34 related to stock-based compensation expense, $0.07 for the amortization of acquisition-related intangibles, $0.04 for acquisition related costs, and ($0.07) related to GAAP-only tax charges. |
Full Year Fiscal 2020 |
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FY20 Guidance Metrics | FY20
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Total ARR (in millions) | $3,500 - $3,550
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Billings (in millions) | $4,050 - $4,150
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Revenue (in millions) (1) | $3,250 - $3,300
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GAAP spend growth (cost of revenue + operating expenses) | Approx. 10% | |
Non-GAAP spend growth (cost of revenue + operating expenses) (2) | Approx. 9% | |
EPS GAAP | $1.12 - $1.31 | |
EPS non-GAAP (3) | $2.71 - $2.90 | |
Free cash flow | Approx. $1.35 billion | |
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(1) | We do not expect foreign currency exchange rates or hedge gains/losses to materially impact our revenue guidance. |
(2) | Non-GAAP spend excludes $310 million related to stock-based compensation expense, $64 million for the amortization of acquisition-related intangibles, and $31 million for acquisition related costs. |
(3) | Non-GAAP earnings per diluted share excludes $1.39 related to stock-based compensation expense, $0.28 for the amortization of acquisition-related intangibles, $0.13 related to acquisition related costs, and ($0.21) related to GAAP-only tax charges. |
Tax Rates and Foreign Currency Hedging
The first quarter and full year fiscal 2020 outlook assume a projected annual effective tax rate of 25 percent and 18 percent for GAAP and non-GAAP results, respectively. Assumptions for the annual effective tax rate are regularly evaluated and may change based on the projected geographic mix of earnings.
The majority of the Euro, Yen, British pound and Australian dollar denominated billings for our first quarter fiscal 2020 have been hedged. This hedging, along with deferred revenue locked-in through prior period billings hedges, will reduce the impact of currency fluctuations on our fourth quarter results. However, over an extended period of time, currency fluctuations may increasingly impact our results. We also hedge certain expenses. We hedge our net cash flow exposures using a four quarter rolling layered hedge program. As such, a portion of the projected Euro, Yen, British pound and Australian dollar denominated billings for the remainder of fiscal 2020 have been hedged. The closer to the current time period, the more we are hedged.
