Autodesk(US:ADSK)2025-11-26 21:03Revenue Performance - Total net revenue for the three months ended October 31, 2025, was $1.853 billion, a 18% increase from $1.570 billion in the same period of 2024[25]. - For the nine months ended October 31, 2025, total net revenue reached $5.249 billion, up 17% from $4.492 billion in the prior year[25]. - Revenue recognized during the three months ended October 31, 2025, from deferred revenue was $843 million, compared to $790 million in the same period of 2024[29]. - The Americas contributed $2.331 billion to total net revenue for the nine months ended October 31, 2025, representing a 17% increase from $1.986 billion in 2024[25]. - Consolidated net income for the nine months ended October 31, 2025, was $808 million, slightly down from $809 million in the same period of 2024[114]. Performance Obligations - Remaining performance obligations as of October 31, 2025, amounted to $7.36 billion, with an expected revenue recognition of $4.83 billion (66%) in the next 12 months[26]. - The company expects to recognize the remaining $2.53 billion (34%) of performance obligations as revenue after the next 12 months[26]. - Remaining Performance Obligations (RPO) represent the sum of total short-term, long-term, and unbilled deferred revenue, indicating expected revenue recognition in the next twelve months[235]. Cash and Investments - Cash and cash equivalents, including marketable securities, totaled $1.966 billion as of October 31, 2025[32]. - As of January 31, 2025, Autodesk reported total cash equivalents and marketable securities of $1,436 million, with cash equivalents at $1,424 million and marketable securities at $13 million[35]. - The fair value of Autodesk's marketable debt securities as of October 31, 2025, was $602 million, with $267 million due within one year and $314 million due after one year through five years[37]. - Autodesk had no material unrealized losses for marketable debt securities as of both October 31, 2025, and January 31, 2025, and total unrealized gains were not material for the nine months ended October 31, 2025[37]. - The company had $156 million in direct investments in privately held companies as of October 31, 2025, down from $168 million as of January 31, 2025[41]. Stock-Based Compensation - Autodesk's stock-based compensation expense related to restricted stock units was $449 million for the nine months ended October 31, 2025, compared to $432 million for the same period in 2024[53]. - The fair value of shares vested during the nine months ended October 31, 2025, was $730 million, an increase from $634 million in the same period of 2024[52]. - Stock-based compensation expense related to performance stock units was $19 million for the three months ended October 31, 2025, compared to $22 million for the same period in 2024, and $58 million for the nine months ended October 31, 2025, compared to $36 million in 2024[58]. - Autodesk's stock-based compensation expense for the nine months ended October 31, 2025, totaled $607 million, compared to $500 million in 2024[61]. Debt and Financing - Autodesk entered into a new unsecured revolving loan facility under the 2025 Credit Agreement, providing for an aggregate principal amount of $1.5 billion, with an option to increase to $2 billion[78]. - The total principal outstanding for Autodesk's borrowings as of October 31, 2025, was $2.5 billion, with a fair value of $2.482 billion after accounting for unamortized debt discount and issuance costs[80]. - The expected future principal payments for all borrowings include $500 million due in 2028, $500 million in 2030, and $1.5 billion thereafter[83]. Tax and Income - Autodesk recorded an income tax expense of $125 million on pre-tax income of $468 million for the three months ended October 31, 2025, resulting in an effective tax rate differing from the U.S. federal statutory rate of 21%[67]. - Basic net income per share for the three months ended October 31, 2025, was $1.61, compared to $1.28 for the same period in 2024, reflecting a 25.8% increase[20]. - Autodesk's net income for the nine months ended October 31, 2025, was $152 million for the first quarter, $313 million for the second quarter, and $343 million for the third quarter[106]. Share Repurchase and Equity - During the three and nine months ended October 31, 2025, Autodesk repurchased 1 million and 3 million shares at average prices of $306.35 and $290.04 per share, respectively[106]. - As of October 31, 2024, Autodesk had $4.3 billion remaining for repurchase under the November 2022 repurchase program[108]. - The company has $2.81 billion and $5 billion remaining available for repurchase under its November 2022 and November 2024 stock repurchase programs, respectively[220]. Operational Changes and Investigations - Autodesk's restructuring plan initiated in fiscal 2026 aims to optimize its go-to-market organization and reallocate resources towards investments in cloud, platform, and artificial intelligence[95]. - The company faced a federal securities class action complaint filed in April 2024, alleging false and misleading statements, with the court granting a motion to dismiss in July 2025[104][105]. - Autodesk's internal investigation regarding free cash flow and non-GAAP operating margin practices was initiated in March 2024, with the SEC closing its matter in August 2025[103]. Other Financial Metrics - The company recorded total operating lease right-of-use assets impairment charges of $1 million and $12 million for the three and nine months ended October 31, 2025, respectively[85]. - Autodesk's total intangible assets amounted to $493 million as of October 31, 2025, down from $574 million as of January 31, 2025[70]. - Long-lived assets totaled $270 million as of October 31, 2025, down from $286 million as of January 31, 2025[117]. - The balance of assets recognized from costs to obtain a contract with a customer was $755 million as of October 31, 2025, up from $467 million as of January 31, 2025[76].