The following are forward-looking statements based on current expectations and assumptions, and involve risks and uncertainties, some of which are set forth below under "Safe Harbor Statement." Autodesk's business outlook for the second quarter and full-year fiscal 2024 considers the current economic environment and foreign exchange currency rate environment. A reconciliation between the fiscal 2024 GAAP and non-GAAP estimates is provided below or in the tables following this press release.
Second Quarter Fiscal 2024 | ||
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| ||
Q2 FY24 Guidance Metrics |
| Q2 FY24
|
Revenue (in millions) |
| $1,315 - $1,325 |
EPS GAAP |
| $0.81 - $0.85 |
EPS non-GAAP (1) |
| $1.70 - $1.74 |
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(1) Non-GAAP earnings per diluted share excludes $0.90 related to stock-based compensation expense, $0.09 for the amortization of both purchased intangibles and developed technologies, $0.01 for acquisition-related costs, partially offset by ($0.11) related to GAAP-only tax charges. |
Full Year Fiscal 2024 | ||
|
| ||
FY24 Guidance Metrics |
| FY24
|
Billings (in millions) (1) |
| $5,025 - $5,175
|
Revenue (in millions) (2) |
| $5,355 - $5,455
|
GAAP operating margin |
| Approx. flat year over year |
Non-GAAP operating margin (3) |
| Approx. flat year over year |
EPS GAAP |
| $3.68 - $4.02 |
EPS non-GAAP (4) |
| $7.07 - $7.41 |
Free cash flow (in millions) (5) |
| $1,150 - $1,250 |
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(1) Excluding the impact of foreign currency exchange rates and hedge gains/losses, billings guidance would be down approximately 11% to 9%. |
(2) Excluding the impact of foreign currency exchange rates and hedge gains/losses, revenue guidance would be up approximately 11% to 13%. |
(3) Non-GAAP operating margin excludes approximately 13% related to stock-based compensation expense, approximately 2% for the amortization of both purchased intangibles and developed technologies, and less than 1% related to acquisition-related costs. |
(4) Non-GAAP earnings per diluted share excludes $3.33 related to stock-based compensation expense, $0.36 for the amortization of both purchased intangibles and developed technologies, and $0.03 related to acquisition-related costs, partially offset by ($0.33) related to GAAP-only tax charges. |
(5) Free cash flow is cash flow from operating activities less approximately $35 million of capital expenditures. |
The second quarter and full-year fiscal 2024 outlook assume a projected annual effective tax rate of 24 percent and 18 percent for GAAP and non-GAAP results, respectively. Shifts in geographic profitability continue to impact the annual effective tax rate due to significant differences in tax rates in various jurisdictions. Therefore, assumptions for the annual effective tax rate are evaluated regularly and may change based on the projected geographic mix of earnings.
Earnings Conference Call and Webcast
Autodesk will host its first quarter conference call today at 5 p.m. ET. The live broadcast can be accessed at autodesk.com/investor. A transcript of the opening commentary will also be available following the conference call.
A replay of the broadcast will be available at 7 p.m. ET at autodesk.com/investor. This replay will be maintained on Autodesk's website for at least 12 months.
Investor Presentation Details
An investor presentation, Excel financials and other supplemental materials providing additional information can be found at autodesk.com/investor.
Key Performance Metrics
To help better understand our financial performance, we use several key performance metrics including billings, recurring revenue and net revenue retention rate ("NR3"). These metrics are key performance metrics and should be viewed independently of revenue and deferred revenue. These metrics are not intended to be combined with those items. We use these metrics to monitor the strength of our recurring business. We believe these metrics are useful to investors because they can help in monitoring the long-term health of our business. Our determination and presentation of these metrics may differ from that of other companies. The presentation of these metrics is meant to be considered in addition to, not as a substitute for or in isolation from, our financial measures prepared in accordance with GAAP.
Glossary of Terms
Billings: Total revenue plus the net change in deferred revenue from the beginning to the end of the period.
Cloud Service Offerings: Represents individual term-based offerings deployed through web browser technologies or in a hybrid software and cloud configuration. Cloud service offerings that are bundled with other product offerings are not captured as a separate cloud service offering.
Constant Currency (CC) Growth Rates: We attempt to represent the changes in the underlying business operations by eliminating fluctuations caused by changes in foreign currency exchange rates as well as eliminating hedge gains or losses recorded within the current and comparative periods. We calculate constant currency growth rates by (i) applying the applicable prior period exchange rates to current period results and (ii) excluding any gains or losses from foreign currency hedge contracts that are reported in the current and comparative periods.
