Summary
Autodesk reported fiscal 2022 second-quarter revenue of $1,060 million, up 16% from the prior-year quarter and up 14% in constant currency. Gross profit was $954.3 million, up 14.7%, but gross margin slipped to 90.1%, down 1.1 percentage points. Operating income rose 1.4% to $148.1 million, and GAAP operating margin was 14%, down 2 percentage points. Net income was $115.6 million, up 17.7%, and GAAP diluted EPS was $0.52, up 18.2%. For the six months ended July 31, 2021, revenue reached $2,049.0 million, up 14%, net income was $271.2 million, up 64.7%, and diluted EPS was $1.22, up 64.9%. Cost growth ran ahead of revenue growth, which is why a solid top line produced only a small gain in operating income.
The subscription mix keeps the model steady. Recurring revenue was 98% of total revenue, and the net revenue retention rate stayed in the range of 100% to 110%. Billings rose 29% to $1,015 million. Current remaining performance obligations increased 24% to $2.85 billion, and total remaining performance obligations increased 24% to $4.14 billion. Unbilled deferred revenue was $843 million, an increase of $375 million. Current deferred revenue was $2.52 billion, up 19.9%. Management pointed to new product subscriptions, digital sales, and better renewal rates as the drivers. Non-GAAP operating income was $331 million, and non-GAAP operating margin was 31%, up 2 percentage points. Non-GAAP diluted EPS was $1.21, compared with $0.98 a year earlier. The wide gap between GAAP and non-GAAP profit reflects stock-based compensation, amortization of purchased intangibles and developed technologies, and acquisition-related costs.
Cash flow improved sharply. Operating cash flow was $202 million for the quarter, up 121.5%, and capital expenditures were $15.8 million, down 41%. Free cash flow, defined as operating cash flow less capital expenditures, was $186 million, up $122 million. On a six-month basis, operating cash flow was $538.1 million, up 28.6%, capital expenditures were $36.1 million, down 22.7%, and free cash flow was $502.0 million. The company continues to spend on acquisitions, including Innovyze in the first quarter and Upchain in the second, along with product development.
Guidance covers the next quarter and the full fiscal year. For the third quarter, Autodesk guided non-GAAP diluted EPS to $1.22 to $1.28. For all of fiscal 2022, management guided billings of $4,875 million to $4,975 million, an increase of 18% to 20%, a non-GAAP operating margin of approximately 31%, non-GAAP diluted EPS of $4.91 to $5.06, and free cash flow of $1,500 million to $1,575 million. The company also said it is shifting more enterprise business agreement customers from multi-year paid up front to annual billings. That change should suit customers, though it will affect the timing of billings and collections.
The risks are the usual mix for this business. COVID-19 and its variants still cloud the pace of return to work, renewal activity, and large transactions. Currency swings matter: net revenue rose 16% as reported against 14% in constant currency, while total spend felt a negative foreign exchange impact. The company leans on a small set of channel partners, with Tech Data at 36% of total net revenue and Ingram Micro at 9% for the three months ended July 31, 2021. Maintenance revenue keeps shrinking as customers move to subscription plans, and the pace depends on renewal rates and the success of transition incentives. Competition, acquisition integration, tax rate changes, and data security all remain on the risk list.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2022 | Q1 FY2022 | QoQ | Q2 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.06B | $989.3M | +7.1% | $913.1M | +16.1% |
| Gross profit | $954.3M | $896.5M | +6.4% | $832.2M | +14.7% |
| Gross margin | 90.0% | 90.6% | -0.6 pp | 91.1% | -1.1 pp |
| Research & development | $276.9M | $265.5M | +4.3% | $232.5M | +19.1% |
| Sales & marketing | $398.8M | $377.1M | +5.8% | $350.9M | +13.7% |
| General & administrative | $119.4M | $111.9M | +6.7% | $93.2M | +28.1% |
| Total operating expenses | $806.2M | $762.7M | +5.7% | $686.1M | +17.5% |
| Operating income (loss) | $148.1M | $133.8M | +10.7% | $146.1M | +1.4% |
| Operating margin | 14.0% | 13.5% | +0.5 pp | 16.0% | -2.0 pp |
| Net income (loss) | $115.6M | $155.6M | -25.7% | $98.2M | +17.7% |
| Net margin | 10.9% | 15.7% | -4.8 pp | 10.8% | +0.2 pp |
| Diluted EPS | $0.52 | $0.70 | -$0.18 | $0.44 | +$0.08 |
Risks
International net revenue represented 67% of net revenue for the six months ended July 31, 2021, so global economic or political deterioration, protectionism, Brexit-related disruption, and COVID-19 variants could reduce customer spending and harm results.
GAAP operating margin declined 2.0 percentage points to 14.0% in the quarter ended July 31, 2021, and gross margin declined 1.1 percentage points to 90.1%, as costs rose on higher headcount, stock-based compensation, cloud hosting, and acquisition amortization.
Tech Data accounted for 36% and Ingram Micro 9% of total net revenue for the six months ended July 31, 2021; ownership changes at both distributors could cause reseller or end-user uncertainty and temporarily reduce sales.
Autodesk identified a compromised SolarWinds server and remediated the incident, but similar attacks could disrupt systems, expose customer or proprietary data, create liability, and harm reputation.
Customers are not obligated to renew, and net revenue retention rate was within 100% to 110% as of July 31, 2021; renewal declines or less favorable renewal terms could reduce future revenue.
Autodesk is increasingly building artificial intelligence into its offerings, and social or ethical controversy plus potential AI regulation could cause reputational harm, legal liability, and added research and development costs.
Combined revenue from AutoCAD and AutoCAD LT family products represented 29% of total net revenue for the six months ended July 31, 2021; if those offerings are not successful, revenue would be adversely affected.
Recent acquisitions including Innovyze, Spacemaker, and Upchain carry integration, retention, and amortization risks, and MD&A notes acquisitions may in certain instances negatively impact operating margins.
MD&A reports foreign exchange had a positive impact on net revenue but a negative impact on total spend for the three and six months ended July 31, 2021, and currency volatility can reduce earnings predictability.
Expanding privacy and data-localization rules, including GDPR, the Schrems II ruling, and UK GDPR, may increase compliance costs, trigger regulatory scrutiny, and limit cross-border data transfers.
Competition for highly skilled technical, professional, managerial, sales, and marketing personnel is intense; failure to attract or retain key employees could delay product introductions and impede financial goals.
Autodesk had $1.6 billion of debt as of July 31, 2021, plus a $650.0 million revolving facility; covenants, rating downgrades, or additional borrowings could restrict financing and reduce cash flow flexibility.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Remaining Performance Obligations (RPO)
Free Cash Flow
Deferred Revenue
Current Remaining Performance Obligations (cRPO)
Unbilled Deferred Revenue
Net Revenue Retention (NR3)
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q2 FY2022 (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.