Autodesk(US:ADSK)2024-06-10 20:19Revenue and Financial Performance - Total net revenue for Q1 2024 was $1.417 billion, up from $1.269 billion in Q1 2023, representing an 11.7% year-over-year increase[23] - Architecture, Engineering and Construction product family generated $674 million in revenue, a 15.8% increase from $582 million in Q1 2023[23] - Americas region contributed $619 million in revenue, with the U.S. accounting for $509 million, a 11.6% increase from $456 million in Q1 2023[24] - Indirect sales channel generated $880 million in revenue, representing 62.1% of total net revenue[25] - Revenue recognized from deferred revenue balances was $1.19 billion in Q1 2024, up from $1.06 billion in Q1 2023[30] - Net income for Q1 2024 was $252 million, compared to $161 million in Q1 2023, representing a 56.5% increase[112] - Basic net income per share for Q1 2024 was $1.17, up from $0.75 in Q1 2023[112] - Diluted net income per share for Q1 2024 was $1.16, compared to $0.75 in Q1 2023[112] - Net income for the three months ended April 30, 2024, was $252 million, contributing to an increase in total stockholders' equity to $2.161 billion[103] Acquisitions and Investments - Autodesk acquired Payapps Limited for $387 million in cash on February 20, 2024, to enhance its construction payment management offering[62] - Autodesk acquired the PIX business of X2X, LLC for $266 million in cash on March 15, 2024, to improve production management in the media and entertainment industry[63] - Autodesk acquired Aether Media, Inc. for $131 million on May 20, 2024, enhancing AI capabilities for VFX creation tools[114] - Goodwill from acquisitions is expected to be deductible for U.S. income tax purposes, with PIX's goodwill ranging between $180 million to $190 million, while Payapps' goodwill deduction is pending[64] - Total intangible assets increased from $406 million as of January 31, 2024, to $572 million as of April 30, 2024, driven by acquisitions[64] - The fair value of assets acquired in the Payapps and PIX acquisitions totaled $647 million, including $491 million in goodwill[64] - Strategic investments in equity securities totaled $163 million as of April 30, 2024, with cumulative net unrealized adjustments of $(85) million[40][41] Cash Flow and Financial Instruments - Net cash provided by operating activities for Q1 2024 was $494 million, down from $723 million in Q1 2023[192] - Net cash used in investing activities for Q1 2024 was $638 million, primarily due to business combinations and purchases of marketable securities[194] - Net cash used in financing activities for Q1 2024 was $61 million, primarily due to taxes paid related to net share settlement of equity awards[194] - Cash equivalents decreased from $693 million on January 31, 2024, to $592 million on April 30, 2024, primarily due to a reduction in money market funds[43][45] - Marketable securities increased slightly from $1.022 billion on January 31, 2024, to $934 million on April 30, 2024, with long-term corporate debt securities rising from $104 million to $107 million[43][45] - Total financial instruments measured at fair value as of April 30, 2024, were $1.633 billion, with Level 1 assets at $699 million and Level 2 assets at $934 million[43] - Marketable debt securities with fair value of $546 million were classified by maturity, with $276 million due within 1 year[37] Stock-Based Compensation and Equity - The fair value of shares vested during the three months ended April 30, 2024, was $396 million, compared to $274 million in the same period in 2023[47] - Autodesk granted 2 million restricted stock units during the three months ended April 30, 2024, with a stock-based compensation expense of $127 million[48] - Performance stock units granted during the three months ended April 30, 2024, totaled 7 thousand, with a stock-based compensation expense of $6 million[48][49] - Autodesk recorded stock-based compensation expense related to common stock shares of $1 million for the three months ended April 30, 2024, down from $6 million in the same period in 2023[50] - Autodesk repurchased 33 thousand shares at an average repurchase price of $254.81 per share during the three months ended April 30, 2024, with $4.73 billion remaining available for repurchase under the November 2022 repurchase program[103] - Autodesk repurchased 33,000 shares of common stock in February 2024 at an average price of $254.81 per share, with $4.73 billion remaining available under the repurchase program[195][196] Leases and Liabilities - Operating lease cost for the three months ended April 30, 2024, was $17 million, with $2 million allocated to cost of subscription and maintenance revenue, $7 million to marketing and sales, $5 million to research and development, and $3 million to general and administrative[78] - Variable lease cost for the three months ended April 30, 2024, was $4 million, with $2 million allocated to marketing and sales, $1 million to research and development, and $1 million to general and administrative[78] - The present value of operating lease liabilities as of April 30, 2024, was $329 million, with maturities of $55 million for the remainder of fiscal 2025, $79 million for 2026, $58 million for 2027, $48 million for 2028, $40 million for 2029, and $78 million thereafter[79] - Cash paid for operating leases included in operating cash flows was $23 million for the three months ended April 30, 2024, and $28 million for the three months ended April 30, 2023[79] - Sublease income was $2 million for both the three months ended April 30, 2024 and 2023, with expected sublease income payments of approximately $40 million for remaining fiscal 2025 through fiscal 2029 and $30 million thereafter[80] - The weighted average remaining lease term for operating leases was 6.0 years at April 30, 2024, and 6.2 years at January 31, 2024, with a weighted average discount rate of 2.89% and 2.86%, respectively[79] Debt and Credit Facilities - The company has an unsecured revolving credit facility of $1.5 billion, with an option to increase it to $2.0 billion, and no outstanding borrowings as of April 30, 2024[72] - Autodesk issued $1.0 billion in 2.4% sustainability bonds in October 2021, with net proceeds of $988 million used for environmentally and socially responsible projects[73] - The company's total principal outstanding for borrowings as of April 30, 2024, was $2.3 billion, with $1.5 billion due after 2029[76] Deferred Revenue and Performance Obligations - Remaining performance obligations as of April 30, 2024, totaled $5.89 billion, with $3.92 billion (66%) expected to be recognized as revenue within the next 12 months[27] - Sales commissions recognized as costs to obtain a contract with a customer increased to $217 million as of April 30, 2024, from $210 million as of January 31, 2024[69] - The company's deferred compensation liability totaled $107 million as of April 30, 2024, with $10 million classified as current and $97 million as non-current[68] Cloud Computing and Intangible Assets - Cloud computing arrangements' capitalized costs increased from $254 million as of January 31, 2024, to $271 million as of April 30, 2024[66] - Amortization expense for cloud computing arrangements was $13 million for the three months ended April 30, 2024, compared to $9 million in the same period in 2023[66] Foreign Currency and Hedging - The notional amounts of foreign currency contracts designated as cash flow hedges were $1.48 billion at April 30, 2024, and $1.25 billion at January 31, 2024[85] - The notional amounts of foreign currency contracts not designated as hedging instruments were $325 million at April 30, 2024, and $455 million at January 31, 2024[94] Long-Lived Assets - Long-lived assets in the Americas totaled $224 million as of April 30, 2024, down from $236 million as of January 31, 2024[113] - Total long-lived assets as of April 30, 2024 were $331 million, compared to $345 million as of January 31, 2024[113] Income Tax - Income tax expense for the three months ended April 30, 2024, was $57 million, relative to pre-tax income of $309 million[57] Sales and Distribution - TD Synnex Corporation accounted for 38% of total net revenue in Q1 2024, down from 40% in Q1 2023[32]