Summary
Autodesk's FY2013 Q3 revenue was $548.0 million, flat compared with the prior-year quarter. Gross profit was $490.1 million, also flat. Gross margin reached 89.4%, up 0.3 percentage points. The bottom line moved sharply lower. Operating income fell 61.9% to $34.4 million. Operating margin was 6.3%, down 10.2 percentage points. Net income dropped 59.6% to $29.4 million. Diluted EPS was $0.13, down 59.4%. Operating cash flow was $157.1 million, up 14.1%. Capital expenditures were $16.5 million, up 85.4%. Deferred revenue, current portion, was $558.1 million, up 11.6%. The quarter included a company-wide restructuring plan. License and other revenue decreased 4% in the quarter, while maintenance revenue increased 6%. Net maintenance billings decreased 5% in the quarter. The restructuring plan is intended to reduce costs and accelerate the shift to cloud, social, and mobile computing.
Nine-month results show growth at the top line but weaker profitability. Revenue was $1,705.3 million, up 5.1%. Gross profit was $1,528.8 million, up 5.3%. Gross margin was 89.6%, up 0.2 percentage points. Operating income was $221.3 million, down 16.1%. Operating margin was 13.0%, down 3.3 percentage points. Net income was $172.9 million, down 18.9%. Diluted EPS was $0.75, down 17.6%. Operating cash flow was $403.5 million, up 1.3%. Capital expenditures were $44.7 million, down 8.2%. Maintenance revenue increased 8% year to date. License and other revenue increased 3% year to date. Commercial new seat license revenue increased 9% year to date. Upgrade revenue decreased 11% year to date.
Non-GAAP figures show a different picture. Non-GAAP gross profit was $501.3 million. Non-GAAP income from operations was $146.7 million. Non-GAAP net income was $109.0 million. Non-GAAP diluted EPS was $0.47. Non-GAAP operating margin was 27%. Suites revenue increased 10% in the quarter and 15% year to date. Suites comprised 30% and 29% of revenue. Flagship products were 54% and 56% of revenue, decreased 4% and increased 2%. New and adjacent products were 15% of revenue, decreased 3% and increased 1%. In the quarter, Americas revenue increased 4%, EMEA revenue decreased 3%, and APAC revenue decreased 3%. Emerging economies revenue decreased 9% in the quarter and 1% year to date, and represented 15% of revenue. Tech Data accounted for 24% and 23% of net revenue. Backlog decreased by $25.0 million to $2.1 million. Days sales outstanding was 49 at October 31, 2012 compared to 61 days at January 31, 2012. On a constant currency basis, net revenue would have increased 2% in the quarter and 5% year to date. Total spend increased 12% in the quarter and 9% year to date as reported, and 14% and 10% on a constant currency basis.
The company initiated a restructuring plan in the quarter. The plan includes a reduction of approximately 500 positions and the consolidation of eight leased facilities. Total cost is estimated at $42.0 million to $52.0 million. For the fourth quarter of fiscal 2013, management expects cost of revenue to slightly increase, marketing and sales to decrease, research and development to increase, and general and administrative expenses to increase, each compared with the fourth quarter of fiscal 2012. Restructuring charges will continue to reduce operating margins and net income for the remainder of fiscal 2013. Risks include weak global economic conditions, execution challenges from the reorganization, foreign exchange volatility, dependence on distributors, and weakness in emerging economies. Other risks include economic volatility, geopolitical risk, local competition, intellectual property protection, poorly developed business infrastructure, scarcity of talent, and software piracy. Autodesk repurchased 4.0 million shares for $130.2 million during the quarter. The company borrowed $110.0 million on its line of credit during the quarter. The line of credit permits unsecured short-term borrowings of up to $400.0 million.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2013 | Q2 FY2013 | QoQ | Q3 FY2012 | YoY |
|---|---|---|---|---|---|
| Revenue | $548.0M | $568.7M | -3.6% | $548.6M | -0.1% |
| Gross profit | $490.1M | $508.9M | -3.7% | $489.0M | +0.2% |
| Gross margin | 89.4% | 89.5% | -0.0 pp | 89.1% | +0.3 pp |
| Research & development | $153.0M | $144.9M | +5.6% | $141.2M | +8.4% |
| Sales & marketing | $203.9M | $212.4M | -4.0% | $206.2M | -1.1% |
| General & administrative | $62.1M | $58.7M | +5.8% | $51.4M | +20.8% |
| Total operating expenses | $455.7M | $416.0M | +9.5% | $398.8M | +14.3% |
| Operating income (loss) | $34.4M | $92.9M | -63.0% | $90.2M | -61.9% |
| Operating margin | 6.3% | 16.3% | -10.1 pp | 16.4% | -10.2 pp |
| Net income (loss) | $29.4M | $64.6M | -54.5% | $72.8M | -59.6% |
| Net margin | 5.4% | 11.4% | -6.0 pp | 13.3% | -7.9 pp |
| Diluted EPS | $0.13 | $0.28 | -$0.15 | $0.32 | -$0.19 |
Risks
Weak global economic conditions, European sovereign debt concerns, and U.S. fiscal cliff uncertainty are reducing customer spending. MD&A states an uneven global economy contributed to lower than anticipated revenue for Q3 FY2013, when revenue was flat at $548.0 million versus $548.6 million in Q3 FY2012.
Autodesk initiated a company-wide restructuring plan in Q3 FY2013 with about 500 position reductions and consolidation of eight leased facilities at an estimated cost of $42.0 million to $52.0 million. The company recorded $36.7 million of restructuring charges in Q3 FY2013, contributing to operating income down 61.9% and net income down 59.6% versus Q3 FY2012.
Reorganizing sales teams by industry and other internal organizational changes caused execution challenges that hurt revenue. MD&A says these challenges, combined with a weaker economy, resulted in lower than anticipated Q3 FY2013 revenue, with revenue flat at $548.0 million and operating margin down 10.2 percentage points to 6.3%.
Tech Data and its global affiliates accounted for 24% and 23% of total net revenue for the three and nine months ended October 31, 2012, up from 16% in both prior-year periods. The MuM asset acquisition concentrated additional sales through Tech Data, increasing dependence on a single distributor.
Maintenance customers have no obligation to renew after their initial term, and net maintenance billings decreased 5% in Q3 FY2013 while increasing 1% for the nine months ended October 31, 2012. Maintenance revenue was $230.9 million in Q3 FY2013, up 6%, but a decline in new licenses or attach rates would pressure future maintenance revenue.
International net revenue represented 68% of total net revenue in Q3 FY2013, and revenue from emerging economies decreased 9% in Q3 FY2013 and 1% for the nine months ended October 31, 2012. The company cites economic volatility, geopolitical risk, and software piracy in these countries.
Autodesk is migrating products to cloud, mobile, and social computing and expanding suites, but customer adoption may not occur as rapidly as anticipated. Suites revenue increased 10% in Q3 FY2013 and 15% for the nine months, while flagship product revenue decreased 4% in Q3 FY2013, showing transition risk.
A substantial portion of net revenue comes from AutoCAD and AutoCAD LT products, which represented 33% and 34% of total net revenue for the three and nine months ended October 31, 2012. Any factor adversely affecting sales of these products would likely harm financial results.
The software industry has limited barriers to entry, and some competitors have greater financial, technical, sales, and marketing resources. Increased competition could result in price reductions, reduced net revenue and profit margins, and loss of market share.
Autodesk regularly acquires businesses and technologies, and the recent increase in acquisitions exacerbates integration risks. The Q3 FY2013 Socialcam acquisition increased stock-based compensation expense, contributing to R&D expenses up 8% in Q3 FY2013.
Autodesk faces increased litigation activity and regulatory inquiries, and any claims or regulatory actions could result in costly defense, damage awards, fines, or orders to change business practices. The company also notes tax positions may be challenged by tax authorities.
Revenue was negatively impacted by foreign exchange rate changes in Q3 FY2013 and the nine months ended October 31, 2012. On a constant currency basis, net revenue would have increased 2% in Q3 FY2013 versus a slight decline as reported, showing FX volatility.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Net maintenance billings
Non-GAAP Gross Margin
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q3 FY2013 (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 15, 2026.