Summary
Autodesk reported second quarter fiscal 2023 revenue of $1.24 billion, up 16.7% from $1.06 billion in the prior-year quarter. Six-month revenue reached $2.41 billion, a 17.5% increase over the same period last year. Billings climbed 17% to $1,191 million, and recurring revenue made up 98% of total revenue, flat against both prior-year periods. The net revenue retention rate stayed inside the 100% to 110% band, unchanged from a year earlier. Subscription plan revenue rose 16% as reported and 17% in constant currency, and it rose 7% sequentially. Design revenue rose 15% to $1,064 million, while Make revenue gained 26% to $113 million. The United States produced $424 million, up 22%, EMEA delivered $473 million, up 15%, and APAC contributed $249 million, up 10%.
Profitability moved up sharply. Gross profit was $1.12 billion, up 17.2%, and gross margin rose to 90.4% from 90.0%, a gain of 0.4 percentage points. Operating income jumped 63.5% to $242 million, lifting operating margin to 19.6%, up 5.6 percentage points. Non-GAAP operating margin was 36%, 5 percentage points higher than a year ago. Net income increased 61.7% to $186 million. Diluted EPS was $0.85, up 63.5% from $0.52, and non-GAAP diluted EPS reached $1.65 against $1.21. The margin gain came while spend still grew. Total spend rose 9% as reported and 11% in constant currency, with foreign exchange acting as a positive factor. Marketing and sales, research and development, and general and administrative expenses all increased, driven by headcount, stock-based compensation, cloud hosting costs, and lease-related impairment charges.
Cash generation held firm. Operating cash flow was $257 million for the quarter, up 27.2% from $202 million, and free cash flow was $246 million, an increase of $60 million. Capital expenditures fell 31.2% to $11 million. For the six months, operating cash flow was $691 million versus $538 million. Deferred revenue, current portion, was $2.71 billion, up 7.5%. The balance sheet carried $1.57 billion in cash, cash equivalents, and marketable securities at July 31, 2022, and about 73% of cash and cash equivalents sit outside the United States. Autodesk repurchased 1,417 thousand shares during the quarter at an average price of $181.64.
The outlook for the third quarter and the full fiscal year rests on non-GAAP targets. Non-GAAP diluted EPS guidance is $1.66 to $1.72 for the third quarter and $6.52 to $6.71 for the full fiscal year, and non-GAAP operating margin is expected near 36% for the full year. Free cash flow is forecast at $2,000 million to $2,080 million for the fiscal year. Management said the guidance is unchanged at the midpoint across all metrics, with underlying business momentum offsetting incremental foreign exchange headwinds, and it repeated that the company is on track for its fiscal 23 goals. The full-year revenue outlook assumes a foreign exchange and hedge drag, and tax assumptions could shift as the geographic mix of earnings changes.
Risks are not hard to find. Autodesk listed foreign exchange rate swings, recessionary fears, supply chain disruption, inflationary pressure, and hiring conditions among the factors that could change results. The war in Ukraine and the company's exit from Russia add geopolitical and regulatory exposure, and most revenue comes from outside the United States. Distributor concentration is notable, with Tech Data accounting for 37% of total net revenue and Ingram Micro 9%. The Inflation Reduction Act brings an adjusted book minimum tax and an excise tax on stock buybacks, and the company is still assessing the impact. Autodesk also recorded $7 million of lease-related asset impairment and other charges in the quarter as it shrinks its facilities footprint, and it warned that EBA seasonality tends to move billings, collections, and related balances in the fourth and first fiscal quarters.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2023 | Q1 FY2023 | QoQ | Q2 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.24B | $1.17B | +5.7% | $1.06B | +16.7% |
| Gross profit | $1.12B | $1.05B | +6.2% | $954.3M | +17.2% |
| Gross margin | 90.4% | 90.0% | +0.4 pp | 90.0% | +0.3 pp |
| Research & development | $306.0M | $289.0M | +5.9% | $276.9M | +10.5% |
| Sales & marketing | $433.0M | $419.0M | +3.3% | $398.8M | +8.6% |
| General & administrative | $128.0M | $120.0M | +6.7% | $119.4M | +7.2% |
| Total operating expenses | $876.0M | $839.0M | +4.4% | $806.2M | +8.7% |
| Operating income (loss) | $242.0M | $214.0M | +13.1% | $148.1M | +63.4% |
| Operating margin | 19.6% | 18.3% | +1.3 pp | 14.0% | +5.6 pp |
| Net income (loss) | $186.0M | $146.0M | +27.4% | $115.6M | +60.9% |
| Net margin | 15.0% | 12.5% | +2.6 pp | 10.9% | +4.1 pp |
| Diluted EPS | $0.85 | $0.67 | +$0.18 | $0.52 | +$0.33 |
Risks
Risk factors and MD&A highlight global economic and political conditions, supply chain disruption and inflationary pressures, a global labor shortage, the ebb and flow of COVID-19, the war in Ukraine, and foreign exchange rate fluctuations as factors that may impact Autodesk's outlook. MD&A states these risks could affect business in the remainder of fiscal 2023 and beyond.
International net revenue represented 66% and 67% of net revenue for the six months ended July 31, 2022 and 2021, respectively. The filing cites a recent deceleration in growth in certain geographies including China, plus sanctions and trade protectionism risks.
Tech Data accounted for 37% and 36% of total net revenue for the six months ended July 31, 2022 and 2021, respectively, and Ingram Micro accounted for 9% in both periods. A significant disruption or deterioration in either distributor relationship could temporarily impair sales.
Customers are not obligated to renew subscriptions, and renewal rates may decline due to pricing, competitive offerings, customer satisfaction, or reduced spending. Net revenue retention rate was within the range of 100% and 110% as of both July 31, 2022 and 2021.
Risk factors state hackers regularly target Autodesk's systems, offerings, services, and applications. The risk is compounded by work-from-home arrangements and the Russian invasion of Ukraine, as Autodesk and its third-party providers are vulnerable to heightened cyberattacks from or affiliated with nation-state actors, including retaliatory attacks against U.S.-based companies.
Autodesk is increasingly building artificial intelligence into many offerings and flags social and ethical issues relating to AI use. It cites potential reputational harm, liability, and government regulation of AI ethics that could increase research and development costs or slow adoption.
The software industry has limited barriers to entry, and the shift to subscriptions and cloud-enabled technologies further lowers barriers and poses a disruptive challenge. Some competitors have greater financial, technical, sales, and marketing resources.
Autodesk regularly acquires businesses and made several acquisitions in fiscal 2022 and the first fiscal quarter of 2023. The filing cites integration difficulties, inherited liabilities, failure to realize anticipated revenue and cost synergies, and diversion of management attention.
Risk factors cite debt service obligations and covenant compliance, and MD&A states interest expense increased as a result of debt issued in fiscal year 2022. A breach of covenants could restrict additional borrowings or accelerate outstanding indebtedness.
Changes in tax rules and regulations could materially affect Autodesk's tax obligations and effective tax rate. The filing notes the Inflation Reduction Act enacted on August 16, 2022 includes an adjusted book minimum tax and excise tax on stock buybacks, and that required capitalization and amortization of research and development expenditures beginning in fiscal 2023 may increase cash taxes.
MD&A states remaining performance obligations decreased 1% and current remaining performance obligations were flat compared with the fourth quarter of the prior fiscal year. Autodesk historically has increased EBA sales activity in its fourth fiscal quarter, and this seasonality may affect billings, RPO, and collections in the fourth and first fiscal quarters.
Autodesk derives a substantial portion of net revenue from a small number of solutions. Combined revenue from AutoCAD and AutoCAD LT family products represented 28% and 29% of total net revenue for the six months ended July 31, 2022 and 2021, respectively.
Autodesk relies on third parties such as Amazon Web Services for operational and technical services and on single or limited suppliers. The filing warns that third-party security incidents, service delays, or supply chain attacks could compromise data, expose Autodesk to liability, or disrupt operations.
Risk factors cite increasing regulatory focus on privacy issues and expanding laws, as well as governmental export and import controls. Violations could impair Autodesk's ability to compete in international markets or subject it to liability.
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 % of Net Revenue
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q2 FY2023 (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.