Autodesk Reports Strong ird Quarter Results

SAN RAFAEL, Calif.--(BUSINESS WIRE)--Autodesk, Inc. (NASDAQ:ADSK) today reported financial results for the third quarter of fiscal 2015.

Third Quarter Fiscal 2015

Total billings increased 25 percent, compared to the third quarter last year.

Revenue was $618 million, an increase of 11 percent, compared to the third quarter last year as reported, and increased 12 percent on a constant currency basis. Revenue contribution from the recent acquisition of Delcam was approximately $14 million.

Total maintenance, desktop (rental), and cloud subscriptions increased by approximately 121,000 from the second quarter of fiscal 2015, including approximately 25,000 subscriptions related to Delcam. This is the first quarter that Delcam subscriptions have been included in the subscription count.

GAAP operating margin was 2 percent, compared to 12 percent in the third quarter last year.

Non-GAAP operating margin was 13 percent, compared to 22 percent in the third quarter last year. A reconciliation of GAAP to non-GAAP results is provided in the accompanying tables.

GAAP diluted earnings per share were $0.05, compared to $0.25 in the third quarter last year.

Non-GAAP diluted earnings per share were $0.25, compared to $0.41 in the third quarter last year.

Deferred revenue was a record $1 billion, an increase of 31 percent, compared to the third quarter last year.

Cash flow from operating activities was $136 million, an increase of 50 percent, compared to the third quarter last year.

Strong billings and revenue growth was driven by strength in several areas including suites, our Architecture, Engineering and Construction (AEC) and Manufacturing business segments, large deal activity, and double-digit growth in all three of our major geographies on a constant currency basis, said Carl Bass, Autodesk president and CEO. We continue to make meaningful progress in our transition to a more recurring, subscription-based business, adding approximately 121,000 subscriptions and more flexible enterprise license agreements. As a result, deferred revenue increased significantly to a record $1 billion. These strong results have led us to raise our outlook for billings and revenue for fiscal 2015 for the third time this year.

Third Quarter Operational Overview

EMEA revenue was $238 million, an increase of 17 percent compared to the third quarter last year as reported, and 15 percent on a constant currency basis. Revenue in the Americas increased 11 percent compared to the third quarter last year to $231 million. Revenue in APAC was $149 million, an increase of 5 percent compared to the third quarter last year as reported, and 10 percent on a constant currency basis. Revenue from emerging economies was $95 million, an increase of 13 percent compared to the third quarter last year both as reported and on a constant currency basis. Revenue from emerging economies represented 15 percent of total revenue in the third quarter.

Revenue from the AEC business segment was $217 million, an increase of 17 percent compared to the third quarter last year. Revenue from the Platform Solutions and Emerging Business (PSEB) segment was $188 million, an increase of 3 percent compared to the third quarter last year. Revenue from the Manufacturing business segment was $170 million, an increase of 20 percent compared to the third quarter last year. Revenue from the Media and Entertainment business (M&E) segment was $43 million, a decrease of 3 percent compared to the third quarter last year.

Revenue from Flagship products was $288 million, an increase of 5 percent compared to the third quarter last year. Revenue from Suites was $225 million, an increase of 13 percent compared to the third quarter last year. Revenue from New and Adjacent products was $105 million, an increase of 29 percent compared to the third quarter last year.

Business Outlook

The following are forward-looking statements based on current expectations and assumptions, and involve risks and uncertainties some of which are set forth below. Autodesks business outlook for the fourth quarter and full year fiscal 2015 assumes, among other things, a continuation of the current economic environment and foreign exchange currency rate environment. A reconciliation between the GAAP and non-GAAP estimates for fiscal 2015 is provided below or in the tables following this press release.

Fourth Quarter Fiscal 2015

Q4 FY15 Guidance Metrics Q4 FY15 (ending

January 31, 2015)

Revenue (in millions) $640 - $655

EPS GAAP ($0.03) - $0.00

EPS Non-GAAP (1) $0.22 - $0.25

(1) Non-GAAP earnings per diluted share exclude $0.17 related to stock-based compensation expense and $0.08 for the amortization of acquisition related intangibles, net of tax.

Full Year Fiscal 2015

Autodesk is updating its guidance for full fiscal year 2015 as follows:

FY15 Guidance Metrics FY15 (ending

January 31, 2015)

Billings growth 15 - 17%

Revenue growth 9 - 10 %

Net subscription additions

325,000 - 375,000

GAAP operating margin 4.5% - 5%

Non-GAAP operating margin 15 - 15.5%

EPS GAAP $0.30 - $0.33

EPS Non-GAAP (1) $1.15 - $1.18

(1) Non-GAAP earnings per diluted share exclude $0.52 related to stock-based compensation expense, $0.30 for the amortization of acquisition related intangibles, $0.02 related to losses and (gains) on strategic investments, and $0.01 related to restructuring charges, net of tax.

The fourth quarter and full year fiscal 2015 outlook assume a projected annual effective tax rate of 31 percent and 26 percent for GAAP and non-GAAP results, respectively. These rates do not include one-time GAAP discrete items or the federal R&D tax credit that expired on December 31, 2013.

Earnings Conference Call and Webcast

Autodesk will host its third quart

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