Summary
Autodesk reported first quarter fiscal 2024 revenue of $1.27 billion, up 8.5% from $1.17 billion in the prior-year quarter. Gross profit rose 8.5% to $1.14 billion, and gross margin held flat at 90.0%. Operating income increased 1.4% to $217 million, but operating margin slipped to 17.1% from 18.3%. Net income rose 10.3% to $161 million, and diluted EPS was $0.75, up from $0.67. On a non-GAAP basis, operating margin was 32%, down 2 percentage points, and non-GAAP diluted EPS was $1.55 versus $1.43. Non-GAAP operating income was $404 million, compared to $397 million in the prior-year quarter. Non-GAAP net income was $334 million, compared to $314 million. The company said it remains on track to achieve its full-year financial goals.
Cash generation was a highlight. Operating cash flow reached $723 million, up 66.6% from $434 million. Free cash flow, which is operating cash flow minus capital expenditures, was $714 million, up 69%. Capital expenditures were $9 million, down from $12 million. Current deferred revenue was $3.19 billion, up 13.5% from $2.81 billion. Billings increased 4% to $1,172 million. Recurring revenue represented 98% of total revenue. The net revenue retention rate remained within the 100 to 110 percent range on a constant currency basis. Total revenue grew 8.5% as reported and 12% at constant currency, showing foreign exchange remained a headwind. New subscription growth decelerated while renewal rates improved quarter over quarter, according to the MD&A. Autodesk repurchased 2,666 thousand shares for $534 million during the quarter. The company said it started the year strongly with rising renewal rates and robust free cash flow generation.
Guidance for the second quarter of fiscal 2024 includes non-GAAP EPS of $1.70 to $1.74. For the full fiscal year 2024, Autodesk guided non-GAAP EPS to $7.07 to $7.41, and free cash flow to $1,150 million to $1,250 million. Full-year revenue is expected to grow 7% to 9% as reported and 11% to 13% at constant currency. Billings are expected to be down 13% to 11% as reported and down 11% to 9% at constant currency. Non-GAAP operating margin is expected to be approximately flat year over year. The outlook assumes annual effective tax rates of 24% for GAAP and 18% for non-GAAP.
Risks include a challenging macroeconomic environment, foreign exchange rate fluctuations, and the decline in operations in Russia. Customer concentration is significant: Tech Data accounted for 40% of total net revenue, and Ingram Micro accounted for 8%. The company also flagged its transition to annual billings for multi-year contracts, which affects the timing of billings and cash collections. In the MD&A, Autodesk noted that if customers move from multi-year contracts billed upfront to annual billing installments, some may choose annual contracts, which would proportionately reduce the unbilled portion of total remaining performance obligations and negatively impact total RPO growth rates. Other risks cited include supply chain disruption, inflationary pressures, higher interest rates, a global labor shortage, and the war in Ukraine. Autodesk also pointed to dependence on international revenue, competition, rapid technological changes, and security risks. The company cited risks related to its strategy to move to platforms and capabilities, limited customer acceptance, and costs related to product defects.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2024 | Q4 FY2023 | QoQ | Q1 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.27B | $1.32B | -3.7% | $1.17B | +8.5% |
| Gross profit | $1.14B | $1.19B | -4.4% | $1.05B | +8.5% |
| Gross margin | 90.0% | 90.6% | -0.6 pp | 90.0% | -0.0 pp |
| Research & development | $327.0M | $313.0M | +4.5% | $289.0M | +13.1% |
| Sales & marketing | $456.0M | $439.0M | +3.9% | $419.0M | +8.8% |
| General & administrative | $132.0M | $155.0M | -14.8% | $120.0M | +10.0% |
| Total operating expenses | $925.0M | $917.0M | +0.9% | $839.0M | +10.3% |
| Operating income (loss) | $217.0M | $277.0M | -21.7% | $214.0M | +1.4% |
| Operating margin | 17.1% | 21.0% | -3.9 pp | 18.3% | -1.2 pp |
| Net income (loss) | $161.0M | $293.0M | -45.1% | $146.0M | +10.3% |
| Net margin | 12.7% | 22.2% | -9.5 pp | 12.5% | +0.2 pp |
| Diluted EPS | $0.75 | $1.34 | -$0.59 | $0.67 | +$0.08 |
Risks
Global economic and political conditions, including inflation, higher interest rates, supply chain disruptions, the war in Ukraine, and foreign exchange fluctuations, have adversely impacted and may continue to impact our business. The challenging macroeconomic environment contributed to a deceleration in new subscription growth during the three months ended April 30, 2023.
We may not be able to predict subscription renewal rates and their impact on future revenue. While renewal rates improved quarter over quarter, new subscription growth decelerated, and changes in renewal rates or mix could negatively affect our results.
We rely significantly on major distributors, particularly Tech Data (40% of net revenue for the three months ended April 30, 2023) and Ingram Micro (8%). We have entered transition agreements with these distributors, and any disruption or deterioration in these relationships could negatively impact our revenue.
Hackers regularly target our systems, and the risk of security incidents has increased due to the shift to work-from-home arrangements and heightened nation-state cyberattacks related to the Russian invasion of Ukraine. Despite significant efforts, we may not prevent security incidents, which could disrupt our systems, compromise data, and harm our reputation.
We derive a substantial portion of our net revenue from a small number of solutions, including AutoCAD-based software and collections. During the three months ended April 30, 2023 and 2022, combined revenue from AutoCAD and AutoCAD LT family products represented 28% of total net revenue. If these offerings are not successful, our revenue would be adversely affected.
Social and ethical issues relating to the use of artificial intelligence in our offerings may result in reputational harm or liability and increased research and development costs. We are increasingly building AI into many of our offerings, and emerging government regulation could further increase costs.
We face exposure to foreign currency exchange rate fluctuations, which negatively impacted net revenue for the three months ended April 30, 2023 (constant currency growth was 12% versus reported 8%). Our hedging activities may not completely mitigate these risks.
Our transition to annual billings for multi-year contracts may impact the timing of billings and cash collections, and could negatively impact total RPO growth rates as some customers may choose annual contracts instead. This transition could cause fluctuations in our financial results.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Remaining Performance Obligations (RPO)
Free Cash Flow
Billings
Deferred Revenue
Current Remaining Performance Obligations (cRPO)
Unbilled Deferred Revenue
Net Revenue Retention Rate (NR3)
Recurring Revenue as a Percentage of Net Revenue
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q1 FY2024 (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.