Zhejiang Xinlei Machinery Co. Ltd , https://www.xinleimachinery.com
SAN RAFAEL, Calif., August 23, 2018 /PRNewswire/ – Autodesk, Inc. (NASDAQ: ADSK) today announced its financial results for the second quarter of fiscal 2019.
### Second Quarter Fiscal 2019 Highlights
- **Subscription Plan ARR**: Reached $1.68 billion, reflecting a 115% increase year-over-year on an as-reported basis and 111% on a constant currency basis. Under the previous revenue accounting standard (ASC 605), subscription plan ARR was $1.66 billion, showing a 112% growth compared to the same period last year.
- **Total ARR**: Increased to $2.35 billion, representing a 28% rise compared to the second quarter last year as reported, and 27% growth on a constant currency basis. Under ASC 605, total ARR was $2.32 billion, reflecting a 27% increase.
- **Subscription Plan Subscriptions**: Grew by 290,000 from Q1 of fiscal 2019 to reach 2.86 million at the end of Q2. This increase included 117,000 maintenance subscribers transitioning to product subscriptions under the maintenance-to-subscription (M2S) program.
- **Total Subscriptions**: Increased by 119,000 from Q1 of fiscal 2019 to reach 3.94 million at the end of Q2.
- **Deferred Revenue**: Stood at $1.80 billion, up 1% compared to the second quarter last year. Total deferred revenue (including deferred and unbilled deferred revenue) reached $2.21 billion, increasing by approximately 20% year-over-year. Under ASC 605, total deferred revenue was $2.28 billion, growing by approximately 24%.
- **Revenue**: Achieved $612 million, a 22% increase year-over-year as reported, and 21% growth on a constant currency basis. Under ASC 605, revenue was $611 million, marking a 22% increase compared to the second quarter last year.
- **Billings**: Surged to $605 million, rising by 27% year-over-year. Under ASC 605, billings were $592 million, increasing by 24% year-over-year.
- **Total GAAP Spend**: Was $636 million, an increase of 4% compared to the second quarter last year as reported, and 3% on a constant currency basis. Excluding ASC 340-40, total GAAP spend was $626 million, showing a 3% increase year-over-year.
- **Total Non-GAAP Spend**: Reached $556 million, up 5% year-over-year as reported, and 4% growth on a constant currency basis. Without ASC 340-40, total non-GAAP spend was $546 million, increasing by 3% year-over-year.
- **GAAP Diluted Net Loss Per Share**: Was $(0.18), compared to $(0.66) in the second quarter last year. Under ASC 605 and excluding ASC 340-40, GAAP diluted net loss per share was $(0.12).
- **Non-GAAP Diluted Earnings Per Share**: Came in at $0.19, compared to a non-GAAP diluted net loss per share of $(0.11) in the second quarter last year. Under ASC 605 and excluding ASC 340-40, non-GAAP diluted net income per share was $0.23.
Andrew Anagnost, President and CEO of Autodesk, remarked, "Strong customer demand and our continued execution across the business drove accelerated growth in ARR and annualized revenue per subscription (ARPS). A superior user experience is driving new customers to adopt Autodesk's subscription and cloud offerings, and we're seeing a steady migration of existing maintenance customers to subscription plans."
Scott Herren, Autodesk's CFO, added, "We delivered solid results across several key metrics, including billings, revenue, total deferred revenue, and earnings. We also generated positive cash flow from operating activities and anticipate being cash flow positive for the full year. We're pleased with our performance in the first half of the fiscal year and remain confident in our ability to deliver strong results for the rest of the year."
### Second Quarter Operational Overview
Subscription plan ARR was $1.68 billion, representing a 115% increase year-over-year as reported and 111% on a constant currency basis. This figure includes $342 million related to the maintenance-to-subscription program. Maintenance plan ARR was $666 million, down 36% year-over-year as reported and on a constant currency basis. Total ARR was $2.35 billion, reflecting a 28% increase year-over-year as reported, and 27% growth on a constant currency basis.
Subscription plan subscriptions (products, enterprise business agreements, and cloud) totaled 2.86 million, a net increase of 290,000 from Q1 of fiscal 2019, driven primarily by new product subscriptions and 117,000 product subscriptions that migrated from maintenance plan subscriptions. Maintenance plan subscriptions stood at 1.07 million, a net decrease of 172,000 from Q1 of fiscal 2019, which includes the 117,000 that moved to product subscriptions. Total subscriptions reached 3.94 million, a net increase of 119,000 from Q1 of fiscal 2019.
Recurring revenue accounted for 96% of total revenue in Q2, compared to 91% in Q2 of the previous year.
Revenue in the Americas was $248 million, up 16% year-over-year as reported and 15% on a constant currency basis. Under ASC 605, revenue in the Americas was $249 million, increasing by 16%. Revenue in EMEA was $248 million, rising 25% year-over-year as reported and 22% on a constant currency basis. Under ASC 605, revenue in EMEA was $246 million, growing by 24%. Revenue in APAC was $116 million, increasing by 31% year-over-year as reported and 30% on a constant currency basis. Under ASC 605, revenue in APAC was $115 million, rising by 30%.
### Business Outlook
The following are forward-looking statements based on current expectations and assumptions, and involve risks and uncertainties. Autodesk's business outlook for Q3 and full-year fiscal 2019 assumes a continuation of the current economic environment and foreign exchange currency rate environment. A reconciliation between GAAP and non-GAAP estimates is provided below or in the tables following this press release.
Starting in Q1 of fiscal 2019, Autodesk began reporting its results under two new accounting standards. Revenue is now reported under ASC 606, and sales commissions are reported under ASC 340-40. We did not recast historical information as we chose to use the modified retrospective transition method. These new standards did not result in a change in the timing or amount of revenue recognized for the majority of our maintenance and subscription offerings, although there may be minor shifts in the timing of revenue recognition due to the elimination of VSOE requirements and other differences between the standards. However, we are required to capitalize and amortize sales commissions under the new standards. ASC 606 and ASC 340-40 do not impact cash flows or subscriptions.
For more detailed financial guidance, refer to the tables below.
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This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding future financial performance, transitions to new business models, integration of acquired businesses, and expectations regarding customer adoption. Actual results may differ materially from those expressed or implied in these statements due to various risks and uncertainties. Additional information about these risks and uncertainties can be found in Autodesk's SEC filings.
Autodesk disclaims any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
For more information about Autodesk, visit [autodesk.com](https://www.autodesk.com/) or follow @autodesk on Twitter.