All growth rates are compared to the third quarter of fiscal 2024, unless otherwise noted. A reconciliation of GAAP to non-GAAP results is provided in the accompanying tables. For definitions, please view the Glossary of Terms later in this document.
Third Quarter Fiscal 2025 Financial Highlights
- Total revenue increased 11 percent to $1.57 billion;
- GAAP operating margin was 22 percent, down 2 percentage points;
- Non-GAAP operating margin was 36 percent, down 3 percentage points;
- GAAP income from operations was $346 million, compared to $334 million;
- Non-GAAP income from operations was $573 million, compared to $547 million;
- GAAP diluted EPS was $1.27; Non-GAAP diluted EPS was $2.17;
- Cash flow from operating activities was $209 million; free cash flow was $199 million.
"Autodesk is leading the industry in modernizing its go-to-market motion. These initiatives enable us to build larger and more durable direct relationships with our customers and to serve them more efficiently. We have already seen significant benefits from these optimization initiatives and there's more to come in the next phase," said Andrew Anagnost, Autodesk president and CEO. "We will continue to deploy capital to offset and buy forward dilution, a practice which has reduced our share count over the last three years, and have significantly extended the duration of our repurchase program by increasing our stock repurchase authorization. Our goal is to deliver sustainable shareholder value over many years."
"We generated broad-based underlying growth across products and regions. Overall, macroeconomic, policy, and geopolitical challenges, and the underlying momentum of the business, were consistent with the last few quarters with continued strong renewal rates and headwinds to new business growth," said Betsy Rafael, Autodesk interim CFO. "Given Autodesk's sustained momentum in the third quarter, and smooth launch of the new transaction model in Western Europe, we are raising the midpoints of our billings, revenue, margins, earnings per share, and free cash flow guidance ranges."
Additional Financial Details
- Total billings increased 28 percent to $1.54 billion.
- Total revenue was $1.57 billion, an increase of 11 percent as reported, and 12 percent on a constant currency basis. Recurring revenue represents 97 percent of total.
- Design revenue was $1.30 billion, an increase of 9 percent as reported, and 10 percent on a constant currency basis. On a sequential basis, Design revenue increased 3 percent as reported and on a constant currency basis.
- Make revenue was $171 million, an increase of 28 percent as reported and on a constant currency basis. On a sequential basis, Make revenue increased 6 percent as reported and 5 percent on a constant currency basis.
- Subscription plan revenue was $1.46 billion, an increase of 11 percent as reported, and 12 percent on a constant currency basis. On a sequential basis, subscription plan revenue increased 3 percent as reported and 4 percent on a constant currency basis.
- Net revenue retention rate remained within the range of 100 to 110 percent, on a constant currency basis.
- GAAP income from operations was $346 million, compared to $334 million. GAAP operating margin was 22 percent, down 2 percentage points.
- Total non-GAAP income from operations was $573 million, compared to $547 million. Non-GAAP operating margin was 36 percent, down 3 percentage points.
- GAAP diluted net income per share was $1.27, compared to $1.12.
- Non-GAAP diluted net income per share was $2.17, compared to $2.07.
- Deferred revenue decreased 9 percent to $3.66 billion. Unbilled deferred revenue was $2.45 billion, an increase of $1.24 billion. Remaining performance obligations ("RPO") increased 17 percent to $6.11 billion. Current RPO increased 14 percent to $4.01 billion.
- Cash flow from operating activities was $209 million, an increase of $191 million. Free cash flow was $199 million, an increase of $186 million.
Third Quarter Fiscal 2025 Business Highlights
Net Revenue by Geographic Area
|
| Three Months
|
| Three Months
|
| Change compared to prior fiscal year |
| Constant currency
to prior fiscal year | ||
| (In millions, except percentages) |
|
| $ |
| % |
| % | ||
| Net Revenue: |
|
|
|
|
|
|
|
|
|
| Americas |
|
|
|
|
|
|
|
|
|
| U.S. | $ 579 |
| $ 520 |
| $ 59 |
| 11 % |
| * |
| Other Americas | 126 |
| 120 |
| 6 |
| 5 % |
| * |
| Total Americas | 705 |
| 640 |
| 65 |
| 10 % |
| 11 % |
| EMEA | 580 |
| 516 |
| 64 |
| 12 % |
| 13 % |
| APAC | 285 |
| 258 |
| 27 |
| 10 % |
| 14 % |
| Total Net Revenue | $ 1,570 |
| $ 1,414 |
| $ 156 |
| 11 % |
| 12 % |
| ____________________ |
| * Constant currency data not provided at this level. |
