Summary
Autodesk opened fiscal 2021 with revenue of $885.7 million in the first quarter, up 20.4% from the prior-year quarter. Gross profit was $803.8 million, up 23.1%. GAAP operating income was $130.6 million, up 426.6%, and net income was $66.5 million, a swing to a profit from a net loss in the prior-year quarter. Diluted EPS was $0.30, also a swing to a profit from a loss per share a year earlier. Gross margin was 90.8%, up 2.0 percentage points, and operating margin was 14.7%, up 11.4 percentage points. Recurring revenue was 98% of total revenue, and net revenue retention rate stayed within the 110% to 120% range.
Cash generation stood out. Operating cash flow was $327.3 million, up 48.0% from the prior-year quarter, and capital expenditures were $19.9 million, up 35.4%. Free cash flow, a non-GAAP measure, was $307 million, up $101 million. Deferred revenue, current portion, was $2,163.9 million, up 21.7%. Remaining performance obligations were $3.47 billion, up 26.6%. Total billings, a non-GAAP metric, rose 11% to $884 million. Non-GAAP operating margin was 28%, up 10 percentage points, and non-GAAP EPS was $0.85 against $0.45 in the prior-year quarter.
Management described a business that held up but changed shape as the pandemic spread. Renewal rates were relatively steady, yet new business slowed in the second half of the quarter. Weekly average users of Autodesk products decreased slightly, while usage of cloud collaboration products increased as customers worked from home. AEC revenue held up well and manufacturing revenue slowed. The migration from maintenance plans to subscription plans continued to reshape the revenue mix. Autodesk extended payment terms to 60 days through the beginning of August 2020, offered free commercial use of its cloud collaboration products through June 2020, and pushed the multi-user to named user transition from May 2020 to August 2020. It also moved a 20% maintenance price increase from May 2020 to August 2020. Cost actions included lower travel and entertainment spending, a slower hiring pace, virtual events, and rationalized marketing, while investment continued in research and development, construction, and digitizing the company.
Guidance points to a second quarter of fiscal 2021 with non-GAAP EPS of $0.86 to $0.92, and that outlook covers the quarter ending July 31, 2020. For the full fiscal year 2021, which ends January 31, 2021, management guided billings to $4,070 million to $4,220 million, a range of down 3% to up 1%, non-GAAP operating margin of 27% to 29%, non-GAAP EPS of $3.52 to $3.90, and free cash flow of $1,300 million to $1,400 million. Those billings and revenue ranges exclude an approximately $20 million impact from foreign currency exchange rates and hedge gains or losses.
The main risks sit with the path of the pandemic. Autodesk lists the duration and extent of COVID-19, actions taken by governments and businesses, the speed of economic recovery, billings and renewal rates, new business close rates, the rate of multi-year contracts, new unit volume growth, and pressure on margins and cash flow as open variables. Distributor concentration is significant, with Tech Data accounting for 38% of total net revenue in the quarter and Ingram Micro accounting for 10%. Foreign currency moved revenue the wrong way, with constant currency growth of 22% running ahead of reported growth. The company kept a full valuation allowance against its U.S. deferred tax assets, and proposed California legislation could suspend net operating loss use and limit research and development credits. Maintenance offerings retire on May 7, 2021, with a one-year conversion window that began May 7, 2020.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2021 | Q4 FY2020 | QoQ | Q1 FY2020 | YoY |
|---|---|---|---|---|---|
| Revenue | $885.7M | $899.3M | -1.5% | $735.5M | +20.4% |
| Gross profit | $803.8M | $816.1M | -1.5% | $652.8M | +23.1% |
| Gross margin | 90.8% | 90.8% | ±0.0 pp | 88.8% | +2.0 pp |
| Research & development | $217.4M | $217.1M | +0.1% | $205.6M | +5.7% |
| Sales & marketing | $341.3M | $349.5M | -2.3% | $313.3M | +8.9% |
| General & administrative | $104.8M | $106.0M | -1.1% | $99.1M | +5.8% |
| Total operating expenses | $673.2M | $682.3M | -1.3% | $628.0M | +7.2% |
| Operating income (loss) | $130.6M | $133.8M | -2.4% | $24.8M | +426.6% |
| Operating margin | 14.8% | 14.9% | -0.1 pp | 3.4% | +11.4 pp |
| Net income (loss) | $66.5M | $131.8M | -49.5% | -$24.2M | +374.8% |
| Net margin | 7.5% | 14.7% | -7.2 pp | -3.3% | +10.8 pp |
| Diluted EPS | $0.30 | $0.59 | -$0.29 | -$0.11 | +$0.41 |
Risks
COVID-19 created uncertainty and specific business effects: weekly average users of Autodesk products decreased slightly, new business slowed in the second half of the quarter, and Manufacturing revenue experienced a slowdown, while cloud collaboration usage increased and renewal rates held relatively steady. The full duration of the pandemic and the speed and timing of economic recovery remain uncertain.
Autodesk extended payment terms to 60 days through early August 2020, offered free commercial use of cloud collaboration products through June 2020, delayed the multi-user to named user transition from May to August 2020, and deferred a 20% maintenance price increase from May to August 2020. The filing states these actions are affecting cash flow and, if unsuccessful in retaining customers and closing new business, could have a material adverse effect.
Tech Data accounted for 38% of total net revenue for the three months ended April 30, 2020, up from 35% in the prior-year period, and Ingram Micro accounted for 10% in both periods. Tech Data's pending acquisition by an Apollo affiliate could create uncertainty with resellers and end users, potentially temporarily reducing Autodesk's ability to sell through that distributor.
Remaining performance obligations were $3.47 billion, a decrease of 2% compared to the fourth quarter in the prior fiscal year, and current remaining performance obligations were $2.35 billion, a decrease of 1%. Deferred revenue was $3.01 billion with flat growth compared to the fourth quarter in the prior fiscal year.
International net revenue represented 66% of net revenue for both the three months ended April 30, 2020 and 2019. The filing cites geopolitical trends toward nationalism and protectionism, U.S. trade policy changes and tariffs, and Brexit transition ending December 31, 2020, which could disrupt trade and increase currency volatility.
Autodesk is transitioning multi-subscription plans to named user plans in fiscal 2021, retiring maintenance offerings as of May 7, 2021, and giving customers a one-year period starting May 7, 2020 to convert maintenance seats. Maintenance revenue decreased 45% for the three months ended April 30, 2020, and execution risks or customer acceptance issues could adversely affect results.
The California May budget bill proposed suspending net operating loss utilization and limiting R&D credit utilization against California taxable income in excess of $5.0 million for the succeeding 5 years. If enacted, this state tax legislation may have a material impact on Autodesk's income tax provision.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Remaining Performance Obligations (RPO)
Free Cash Flow
Billings
Current RPO
Net Revenue Retention Rate (NR3)
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q1 FY2021 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.