Autodesk(ADSK) - 2025 Q4 - Annual Results

Financial Performance - Total revenue for Q4 FY25 increased 12% to $1.64 billion, with recurring revenue representing 97% of total revenue[4] - Total net revenue for the three months ended January 31, 2025, was $1,639 million, a 11.6% increase from $1,469 million in the same period of 2024[44] - Subscription revenue reached $1,522 million for the three months ended January 31, 2025, up 13.6% from $1,339 million in the prior year[44] - Net income for the fiscal year ended January 31, 2025, was $1,112 million, representing a 22.7% increase compared to $906 million in 2024[44] - Autodesk's net income for the fiscal year ended January 31, 2025, was $1,112 million, an increase of 23% compared to $906 million in 2024[46] - The company reported net cash provided by operating activities of $1,607 million for the fiscal year 2025, up from $1,313 million in 2024, representing a 22% increase[46] - Free cash flow for the fiscal year 2025 was $1,567 million, compared to $1,282 million in 2024, marking a 22% increase[50] Revenue Growth - Total billings rose 23% to $2.11 billion, indicating strong demand for Autodesk's offerings[6] - Design revenue reached $1.36 billion, a 12% increase, while Make revenue grew 28% to $176 million[6] - Total subscriptions increased by approximately 516,000 to 7.79 million, reflecting robust customer acquisition[10] - Remaining performance obligations (RPO) indicate a strong future revenue stream, with the current amount expected to be recognized in the next twelve months[33] Operating Margins - GAAP operating margin improved to 22%, up from 21% in the previous year, while non-GAAP operating margin increased to 37% from 36%[4] - Non-GAAP operating margin for the fiscal year 2025 was 36%, compared to 36% in 2024, indicating stable operational efficiency[49] - The company anticipates a GAAP operating margin of 21% to 22% for FY26, with a non-GAAP operating margin forecasted at 36% to 37%[52] Cash Flow and Assets - Cash flow from operating activities for Q4 FY25 was $692 million, an increase of $255 million compared to the previous year[6] - The company’s cash and cash equivalents decreased to $1,599 million as of January 31, 2025, down from $1,892 million a year earlier[45] - Total assets increased to $10,833 million as of January 31, 2025, compared to $9,912 million in the previous year, indicating growth in the company's financial position[45] Workforce and Restructuring - The company announced a restructuring plan resulting in a 9% workforce reduction, affecting approximately 1,350 employees, with anticipated pre-tax charges of $135 million to $150 million[4] - The company incurred $683 million in stock-based compensation expense for the fiscal year 2025, slightly down from $703 million in 2024[46] Future Projections - For FY26, Autodesk projects total billings between $7,060 million and $7,210 million, and revenue between $6,895 million and $6,965 million[17] - The first quarter FY26 revenue guidance is set between $1,600 million and $1,610 million, with GAAP EPS expected to be between $0.76 and $0.90[16] - For Q1 FY26, Autodesk expects GAAP EPS to be in the range of $0.76 to $0.90, with non-GAAP EPS projected between $2.14 and $2.17[52]