Summary
Autodesk reported fiscal 2024 second quarter revenue of $1.34 billion, up 8.7 percent from the prior-year quarter. Gross profit rose 8.9 percent to $1.22 billion, and gross margin was 90.6%, up 0.2 percentage points. GAAP operating income increased 8.3 percent to $262 million, while operating margin was 19.5%, roughly flat versus the prior-year quarter. Net income was $222 million, up 19.4 percent, and diluted EPS came to $1.03, up 21.2 percent. On a non-GAAP basis, operating income was $489 million, operating margin was 36 percent, and diluted EPS was $1.91, compared with $1.65 in the prior-year quarter.
Cash generation was uneven. Operating cash flow for the quarter was $135 million, down 47.5 percent from the prior-year quarter. Capital expenditures were $7 million, down 36.4 percent. Free cash flow, a non-GAAP measure that subtracts capital expenditures from operating cash flow, was $128 million, down $118 million. Through the first six months, operating cash flow was $858 million, up 24.2 percent, and revenue was $2.61 billion, up 8.6 percent. Net income for the first half was $383 million, up 15.4 percent. Deferred revenue (current portion) stood at $3.13 billion at July 31, 2023, up 15.6 percent from the prior-year quarter. Billings, a key performance metric, decreased 8 percent to $1,095 million.
Recurring revenue represented 98 percent of total revenue in the quarter, and the net revenue retention rate stayed within the 100 to 110 percent range on a constant currency basis. That recurring base gives the quarter some stability, but the headline billings decline shows how timing can move reported cash metrics. The company also leans on a concentrated distribution network. TD Synnex accounted for 40 percent of total net revenue, and Ingram Micro accounted for 8 percent. Foreign exchange remained a headwind: revenue grew 8.7 percent as reported, while constant currency growth was 12 percent. The MD&A says total spend rose 9 percent, with foreign exchange having a positive impact on spend.
Management gave guidance for the third quarter and the full fiscal year. For the next quarter, revenue is expected between $1,380 million and $1,395 million, and non-GAAP EPS is expected between $1.97 and $2.03. For the full fiscal year ending January 31, 2024, revenue is guided to $5,405 million to $5,455 million, up 8 percent to 9 percent. Full-year billings are expected to be $5,075 million to $5,175 million, down 12 percent to 11 percent. Non-GAAP EPS guidance is $7.30 to $7.49, and free cash flow guidance is $1,170 million to $1,250 million. The company also said GAAP and non-GAAP operating margin should be approximately flat year over year. The CFO noted that early expansion of some enterprise business agreements expected to renew later in the year reduces the likelihood of more cautious forecast scenarios, so the lower ends of guidance ranges were raised.
Risks remain familiar and real. Autodesk called out global economic and political conditions, foreign exchange headwinds, recessionary fears, supply chain disruptions, inflationary pressures, and higher interest rates. The war in Ukraine and the company's exit from Russia are also listed as factors. The transition to annual billings for multi-year contracts can affect the timing of billings and cash collections, and the company expects that shift to impact those metrics. Customer concentration, competition, rapidly evolving technology, and issues around the use of artificial intelligence in its offerings are additional risks. The effective tax rate is another moving part, with the third quarter and full-year fiscal 2024 outlook assuming a projected annual effective tax rate of 25 percent for GAAP and 18 percent for non-GAAP results. Shifts in geographic profitability can change those assumptions.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2024 | Q1 FY2024 | QoQ | Q2 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.34B | $1.27B | +6.0% | $1.24B | +8.7% |
| Gross profit | $1.22B | $1.14B | +6.7% | $1.12B | +8.9% |
| Gross margin | 90.6% | 90.0% | +0.6 pp | 90.4% | +0.2 pp |
| Research & development | $355.0M | $327.0M | +8.6% | $306.0M | +16.0% |
| Sales & marketing | $449.0M | $456.0M | -1.5% | $433.0M | +3.7% |
| General & administrative | $141.0M | $132.0M | +6.8% | $128.0M | +10.2% |
| Total operating expenses | $956.0M | $925.0M | +3.4% | $876.0M | +9.1% |
| Operating income (loss) | $262.0M | $217.0M | +20.7% | $242.0M | +8.3% |
| Operating margin | 19.5% | 17.1% | +2.4 pp | 19.6% | -0.1 pp |
| Net income (loss) | $222.0M | $161.0M | +37.9% | $186.0M | +19.4% |
| Net margin | 16.5% | 12.7% | +3.8 pp | 15.0% | +1.5 pp |
| Diluted EPS | $1.03 | $0.75 | +$0.28 | $0.85 | +$0.18 |
Risks
MD&A states supply chain disruption, inflationary pressures, higher interest rates, a global labor shortage, the war in Ukraine, and foreign exchange rate fluctuations may impact its fiscal 2024 outlook. Risk factors also note economic downturn or recession, government spending cuts, and deceleration in China could delay or reduce customer technology purchases.
International net revenue represented 64% of net revenue for the six months ended July 31, 2023, down from 66% for the six months ended July 31, 2022, and risk factors say a deceleration in growth has recently occurred in certain geographies including China. MD&A reports a negative foreign exchange impact on net revenue for both the three and six months ended July 31, 2023.
TD Synnex accounted for 40% of total net revenue for both the three and six months ended July 31, 2023, up from 37% in the prior-year periods, while Ingram Micro accounted for 8%, down from 9%. Transition distribution agreements with both distributors run for a one-to-two-year period and a significant disruption or deterioration could temporarily hurt sales.
Risk factors say Autodesk is increasingly building AI into many offerings and social and ethical issues relating to AI may cause reputational harm, competitive harm, legal liability, and additional research and development costs. MD&A highlights Autodesk Forma's AI-powered insights for early-stage planning and design.
MD&A expects the transition to annual billings for multi-year contracts to impact the timing of billings and cash collections, and risk factors say if customers choose annual contracts the unbilled portion of total remaining performance obligations would decrease and total RPO growth rates would be negatively impacted. RPO decreased 7% compared to the fourth quarter in the prior fiscal year, and current RPO was less than 1% decrease compared to the fourth quarter in the prior fiscal year.
Combined revenue from AutoCAD and AutoCAD LT family products, not including collections having AutoCAD or AutoCAD LT as a component, represented 27% of total net revenue for the six months ended July 31, 2023, down from 28% for the six months ended July 31, 2022. Risk factors say any factor adversely affecting sales of these subscriptions would likely harm financial results.
Risk factors note several acquisitions in fiscal 2023 and the six months ended July 31, 2023, and warn of integration difficulties, inherited liabilities such as intellectual property infringement claims, failure to realize revenue and cost projections, and diversion of management attention. MD&A says acquisitions entail cost and integration challenges and may in certain instances negatively impact operating margins.
MD&A highlights the Inflation Reduction Act's 15% corporate minimum income tax and the Tax Act requirement to capitalize and amortize research and development expenditures beginning in fiscal 2023, with no assurance the provision will be repealed or modified. Risk factors say changes in tax laws or successful challenges to how or where profits are recognized could increase overall taxes.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Remaining Performance Obligations (RPO)
Free Cash Flow
Billings
Current Remaining Performance Obligations (cRPO)
Net Revenue Retention Rate
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q2 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.