Autodesk(ADSK)2025-03-06 21:24Financial Performance - Total net revenue for the fiscal year ended January 31, 2025, was $6,131 million, a 11.5% increase from $5,497 million in 2024[388]. - Subscription revenue reached $5,717 million, up 11.8% from $5,116 million in the previous year[388]. - Gross profit for the fiscal year was $5,553 million, representing a 11.4% increase from $4,986 million in 2024[388]. - Net income for the fiscal year was $1,112 million, a 22.7% increase compared to $906 million in 2024[391]. - Total net revenue for fiscal year 2025 was $6.131 billion, a 11.5% increase from $5.497 billion in fiscal year 2024[492]. - Net income for the fiscal year ended January 31, 2025, was $1,112 million, an increase of 23% from $906 million in 2024 and 35% from $823 million in 2023[396]. - The Americas region generated $2.716 billion in net revenue for fiscal year 2025, an increase from $2.438 billion in fiscal year 2024[492]. - The Architecture, Engineering, Construction and Operations segment reported net revenue of $2.937 billion for fiscal year 2025, up from $2.580 billion in fiscal year 2024[492]. Cash Flow and Investments - Net cash provided by operating activities for fiscal 2025 was $1.61 billion, an increase from $1.31 billion in fiscal 2024[368]. - Net cash used in investing activities was $903 million for fiscal 2025, primarily due to business combinations and purchases of marketable securities[370]. - Net cash used in financing activities was $987 million in fiscal 2025, mainly due to repurchases of common stock[371]. - The company authorized a repurchase of $5 billion of common stock in November 2024, in addition to the remaining $3.88 billion from previous programs[379]. - Cash provided by operating activities increased to $1,607 million in 2025 from $1,313 million in 2024, representing a growth of 22.4%[396]. - The company reported a net cash used in investing activities of $903 million in 2025, compared to $502 million in 2024, indicating a significant increase in investment outflows[396]. Assets and Liabilities - Total assets increased to $10,833 million in 2025, up from $9,912 million in 2024[393]. - Total stockholders' equity rose to $2,621 million, compared to $1,855 million in the previous year[393]. - The total contractual obligations as of January 31, 2025, amounted to $3.89 billion, with significant portions due in fiscal years 2026 and 2027-2028[374]. - The company has open cash flow and balance sheet hedge contracts to manage foreign currency exchange risks, primarily denominated in Euros and British pounds[382]. - As of January 31, 2025, Autodesk's net accounts receivable increased to $1,008 million from $876 million in 2024, reflecting a growth of 15%[447]. Expenses - Total operating expenses for the fiscal year were $4,199 million, an increase from $3,858 million in 2024[388]. - Research and development expenses rose to $1,181 million in 2025, a 10.9% increase from $1,065 million in 2024[411]. - Stock-based compensation expense was $683 million in 2025, slightly down from $703 million in 2024[411]. - Advertising expenses for fiscal year 2025 were $54 million, down from $64 million in fiscal year 2024[479]. Acquisitions - The company acquired Aether Media, Inc. for $131 million, enhancing its artificial intelligence capabilities for visual effects creation tools[554]. - Autodesk acquired the PIX business of X2X, LLC for $266 million, aimed at improving collaboration and efficiency in the media and entertainment production process[555]. - The acquisition of Payapps Limited was completed for $387 million, expected to deepen Autodesk Construction Cloud's footprint and improve payment management for contractors[556]. - Autodesk's goodwill recorded from acquisitions during fiscal 2025 totaled $572 million, with $159 million and $185 million expected to be deductible for U.S. income tax purposes for Payapps and PIX, respectively[557]. Tax and Deferred Assets - The total income tax provision for fiscal year 2025 was $272 million, an increase from $230 million in 2024 and $123 million in 2023[535]. - Autodesk's net deferred tax assets increased to $1,173 million as of January 31, 2025, from $1,070 million in 2024[540]. - The valuation allowance against deferred tax assets decreased by $18 million in fiscal 2025, primarily due to the reduction of California deferred tax assets[542]. - Autodesk has $130 million of cumulative California state research tax credit carryforwards and $13 million of cumulative Massachusetts state research tax credit carryforwards, potentially reducing future tax liabilities indefinitely[546]. Stock and Equity - The company did not pay cash dividends in fiscal years 2025, 2024, or 2023, and does not anticipate paying any in the foreseeable future[477]. - The company issued 732 thousand shares under the Employee Stock Purchase Plan (ESPP) in fiscal 2025 at an average price of $165.89[533]. - Autodesk granted 3,229 thousand restricted stock units during the fiscal year ended January 31, 2025, with a weighted average grant date fair value of $245.32 per share[521]. - The fair value of shares vested during fiscal year 2025 was $785 million, compared to $580 million in 2024 and $490 million in 2023[522]. Foreign Currency and Risk Management - A hypothetical 10% appreciation of the U.S. dollar would increase the fair value of foreign currency contracts by $209 million as of January 31, 2025[383]. - Autodesk uses derivative instruments to manage foreign currency exchange rate exposures, with maturities typically between one and 12 months[439]. - The company monitors counterparty risk on a quarterly basis to mitigate credit-related losses from derivative contracts[440].