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Autodesk reports a 7% hike in revenue in fourth quarter

UK: Autodesk has reported financial results for the fourth quarter of fiscal 2019. Total ARR was $2.75 billion, an increase of 34 percent compared to the fourth quarter last year as reported, and 32 percent on a constant currency basis. Included in total ARR is a $27 million contribution from the fourth quarter acquisitions or 1 percentage point of the increase. Under the prior revenue accounting standard, ASC 605, total ARR was $2.72 billion, an increase of 32 percent compared to the fourth quarter last year.

The company reported revenue of $2.09 billion, an increase of 7 percent compared to the fourth quarter last year. Total deferred revenue (deferred revenue plus unbilled deferred revenue) was $2.68 billion, an increase of approximately 18 percent compared to the fourth quarter last year.

Included in deferred revenue was a $36 million contribution from the fourth quarter acquisitions or 2 percentage points of the year-over-year increase. Included in total deferred revenue was a $97 million contribution from the fourth quarter acquisitions, or 4 percentage points of the year-over-year increase. Under ASC 605, total deferred revenue was $2.76 billion, an increase of approximately 21 percent compared to the fourth quarter last year.

Revenue was $737 million, an increase of 33 percent compared to the fourth quarter last year as reported, and 31 percent on a constant currency basis. Included in revenue was a $7 million contribution from the fourth quarter acquisitions, or 1 percentage point of the increase. Under ASC 605, revenue was $713 million, an increase of 29 percent compared to the fourth quarter last year.

Billings were $1.04 billion, an increase of 39 percent compared to the fourth quarter last year. Billings includes $43 million from the fourth quarter acquisitions, accounting for 6 percentage points of the increase. Under ASC 605, billings were $1.05 billion, an increase of 41 percent compared to the fourth quarter last year.

“We achieved multiple milestones in fiscal 2019 and are entering fiscal 2020 with strong momentum,” said Andrew Anagnost, Autodesk president and CEO. “With less than 20 percent of our revenues coming from maintenance, we are effectively finished with our business model transition and now look forward to executing on our multi-year growth strategy.  Our core design offerings and cloud-based solutions for construction, manufacturing and production are benefiting our customers as they undergo their own digital transformations, which offers an ongoing tailwind to our business. We are particularly excited about entering the new fiscal year with an unrivaled portfolio of cloud-based solutions for construction.”

“With over $300 million in free cash flow for the year, we delivered well above our target and are demonstrating the cash-generating power of our model,” said Scott Herren, Autodesk CFO. “Fiscal 2019 was a year of solid execution as we accomplished multiple financial milestones that have positioned us well to keep driving growth in fiscal 2020 and beyond.  We’re exiting the business model transition with a much more predictable business at 95 percent recurring revenue and feel confident about our free cash flow goal for fiscal 2020.”