Autodesk(ADSK)2025-05-29 20:02Revenue Performance - Total net revenue for the three months ended April 30, 2025, was $1,633 million, a 15.2% increase from $1,417 million in the same period of 2024[25]. - Revenue recognized during the three months ended April 30, 2025, from deferred revenue balances was $1.35 billion, compared to $1.19 billion in the same period of 2024[29]. - The Americas contributed $725 million to total net revenue in Q1 2025, up from $619 million in Q1 2024, representing a 17.1% increase[25]. - Net revenue from the Architecture, Engineering, Construction and Operations segment was $809 million, up from $674 million, reflecting a 20% increase year-over-year[25]. - For the three months ended April 30, 2025, Autodesk reported total net revenue of $1.633 billion, an increase of 15.3% compared to $1.417 billion for the same period in 2024[114]. Financial Position - Autodesk's cash equivalents and marketable securities totaled $1,569 million as of April 30, 2025[33]. - As of April 30, 2025, Autodesk's total fair value of marketable debt securities was $485 million, with $194 million due within 1 year and $261 million due in 1 to 5 years[38]. - Autodesk had no material unrealized losses for marketable debt securities as of April 30, 2025, and January 31, 2025, and total unrealized gains were not material for the three months ended April 30, 2025[38]. - The total fair value of financial instruments measured at fair value on a recurring basis was $1,541 million as of April 30, 2025, compared to $1,442 million as of January 31, 2025[46]. - Long-lived assets totaled $258 million as of April 30, 2025, down from $286 million as of January 31, 2025[117]. Stock-Based Compensation - Autodesk recorded stock-based compensation expense related to restricted stock units of $140 million for the three months ended April 30, 2025, compared to $127 million for the same period in 2024, reflecting an increase of approximately 10.2%[55]. - The fair value of shares vested during the three months ended April 30, 2025, was $428 million, up from $396 million in the same period in 2024[54]. - Autodesk granted 2 million restricted stock units during the three months ended April 30, 2025, with a weighted average grant date fair value of $260.61 per share[53]. - Stock-based compensation expense for the three months ended April 30, 2025, totaled $230 million, up from $149 million in 2024, with significant increases in marketing and sales (from $53 million to $97 million) and research and development (from $66 million to $89 million)[62]. - Autodesk recorded stock-based compensation expense related to performance stock units of $21 million for the three months ended April 30, 2025, compared to $6 million for the same period in 2024, indicating a significant increase[59]. Income and Expenses - The consolidated net income for the three months ended April 30, 2025, was $152 million, a decrease of 39.7% from $252 million in the prior year[114]. - Basic net income per share for the three months ended April 30, 2025, was $0.71, down from $1.17 in the same period of 2024[111]. - Autodesk recorded an income tax expense of $82 million on a pre-tax income of $234 million for the three months ended April 30, 2025, compared to $57 million on a pre-tax income of $309 million in 2024[68]. - Autodesk's marketing and sales expenses for the three months ended April 30, 2025, were $398 million, slightly down from $408 million in the same period of 2024[114]. Cash Flow - Net cash provided by operating activities for the three months ended April 30, 2025, was $564 million, an increase from $494 million in the same period of 2024, primarily driven by a $152 million net income and $489 million in non-cash items[209]. - Net cash used in investing activities was $58 million for the three months ended April 30, 2025, compared to a significant outflow of $638 million in the same period of 2024, mainly due to business combinations and marketable securities purchases[211]. - Net cash used in financing activities was $415 million for the three months ended April 30, 2025, primarily due to stock repurchases, compared to $61 million in the same period of 2024[212]. Debt and Financing - The company has entered into a 2025 Credit Agreement providing for an unsecured revolving loan facility of $1.5 billion, with an option to increase to $2 billion[118]. - The 2025 Credit Agreement requires Autodesk to maintain a maximum leverage ratio of Consolidated Covenant Debt to Consolidated EBITDA no greater than 3.50:1.00[119]. - As of April 30, 2025, the total principal outstanding for borrowings is $2.3 billion, with expected future principal payments of $300 million in 2026, $500 million in 2028, and $1 billion thereafter[87]. - Autodesk issued $1.0 billion in 2.4% notes due December 15, 2031, with net proceeds of $988 million used for environmentally and socially responsible projects[80]. - Autodesk issued $300 million of 4.375% notes due June 15, 2025, receiving net proceeds of $296 million after discounts and issuance costs[83]. Strategic Investments and Restructuring - Autodesk's strategic investments in equity securities amounted to $168 million as of April 30, 2025, with no readily determined fair values[43]. - The net unrealized adjustments for strategic investment equity securities were $(93) million as of April 30, 2025, with cumulative negative adjustments totaling $(122) million[44]. - The company initiated a restructuring plan in fiscal 2026 to optimize its go-to-market organization and reallocate resources towards cloud, platform, and artificial intelligence investments[97]. - The restructuring and other exit costs liability as of April 30, 2025, totaled $29 million, with employee termination costs accounting for $28 million of this amount[98]. Market and Customer Insights - The net revenue retention rate (NR3) measures the year-over-year change in recurring revenue for base customers, reflecting the company's ability to maintain and grow its existing customer base[225]. - Recurring revenue consists of revenue from maintenance plans, subscription offerings, and certain other revenue, excluding third-party subscription revenue[227]. - Remaining performance obligations (RPO) represent the total short-term, long-term, and unbilled deferred revenue, indicating future revenue expectations[228]. - The design business includes key products such as AutoCAD, Revit, and Maya, contributing significantly to the company's overall revenue[218].