Autodesk Reports Strong Third Quarter Results

Autodesk, Inc. (NASDAQ: ADSK) today reported financial results for the third quarter of fiscal 2017.

Third Quarter Fiscal 2017
  • New model subscriptions increased 168,000 from the second quarter of fiscal 2017 to 861,000.
  • Total subscriptions increased 134,000 from the second quarter of fiscal 2017 to 2.95 million at the end of the third quarter and include approximately 13,000 maintenance subscriptions related to the recent acquisition of Solid Angle.
  • New model annualized recurring revenue (ARR) was $414 million and increased 88 percent compared to the third quarter last year as reported, and 91 percent on a constant currency basis.
  • Total ARR was $1.50 billion, an increase of 11 percent compared to the third quarter last year as reported, and 15 percent on a constant currency basis.
  • Deferred revenue increased 26 percent to $1.53 billion, compared to $1.21 billion in the third quarter last year.
  • Revenue was $490 million, a decrease of 18 percent compared to the third quarter last year as reported, and 16 percent on a constant currency basis. During Autodesk's business model transition, revenue is negatively impacted as more revenue is recognized ratably rather than up front and as new offerings generally have a lower initial purchase price.
  • Total GAAP spend (cost of revenue plus operating expenses) was $610 million, a decrease of 1 percent compared to the third quarter last year. GAAP spend includes a charge of $3 million for a previously announced restructuring and other facility exit costs.
  • Total non-GAAP spend was $533 million, a decrease of 2 percent compared to the third quarter last year. A reconciliation of GAAP to non-GAAP results is provided in the accompanying tables.
  • GAAP diluted net loss per share was $(0.64). GAAP diluted net loss per share was $(0.19) in the third quarter last year.
  • Non-GAAP diluted net loss per share was $(0.18), compared to non-GAAP diluted net income per share of $0.14 in the third quarter last year.

"We are pleased with our results for the quarter, which were driven by strong growth in product subscription," said Carl Bass, Autodesk president and CEO. "This was the first quarter of selling only subscriptions, a significant milestone in our business model transition. We also had a record-breaking quarter for cloud subscription additions, driven by continued momentum of BIM 360 and Fusion 360. Coupled with diligent cost control, we continue to progress steadily to our fiscal year 2020 goals."

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