Summary
Autodesk posted $952.4 million of revenue in the third quarter of fiscal 2021, up 13% from the prior-year quarter, and $2.75 billion for the first nine months, up 15.8%. Gross profit rose 13.8% to $868.7 million, and gross margin reached 91.2%, up 0.6 percentage points from 90.6%. The profit lines grew far faster than sales. Operating income climbed 51.9% to $168.0 million, which pushed operating margin to 17.6% from 13.1%. Net income rose 98.2% to $132.2 million, and diluted EPS rose 96.7%, from $0.30 to $0.59. On a non-GAAP basis, net income was $231.5 million, diluted EPS was $1.04, and operating margin was 30%.
The mix keeps tilting toward subscriptions. Subscription revenue rose 24% in the quarter and 28% year to date, while maintenance revenue fell 56% and 50% over the same spans as customers move off legacy plans. Recurring revenue supplied 97% of net revenue in both periods, up from 96% a year earlier, and management intends to retire maintenance plans on May 7, 2021. Retention cooled: NR3 sat in the 100% to 110% range on October 31, 2020, against 110% to 120% a year before. Demand was broad. AEC revenue rose 17%, AutoCAD and AutoCAD LT rose 14%, and MFG and M&E each rose 7%. APAC led the regions with 19% growth, ahead of the Americas at 12% and EMEA at 11%.
Cash generation held up. Operating cash flow was $361.1 million for the quarter, up 30.6%, and $779.6 million for the nine months, up 8.7%. Capital expenditures were $20.9 million in the quarter, up 115.5%. Deferred revenue, current portion only, stood at $2.16 billion, up 18.6% from a year earlier, and remaining performance obligations were $3.58 billion, up 20.5%. Cash and marketable securities totaled $1.62 billion on October 31, 2020, with 58.0% of that balance held outside the United States. Autodesk repurchased 2.1 million shares for $392.9 million during the nine months, and in November 2020 spent roughly $200 million, net of cash acquired, on Spacemaker AS. The balance sheet carries $1.65 billion of notes, and the $650.0 million revolver was undrawn.
Spending grew at a slower pace than revenue. Marketing and sales expense rose 9% to $359.3 million and research and development rose 9% to $233.0 million, while general and administrative expense was roughly flat at $98.8 million. Interest and other expense, net narrowed to $11.9 million in the quarter from $14.2 million a year earlier, although the nine-month figure widened to $69.1 million from $37.7 million, largely on negative adjustments to non-marketable equity securities. Income tax expense was $23.9 million against pre-tax income of $156.1 million. COVID-19 still shapes demand. Usage ran above pre-pandemic levels in parts of Asia and most of Europe, but stayed below those levels in the U.S. and parts of Europe, with the U.K. improving sequentially. Management credited strong enterprise deal activity, improving subscription renewal rates, and digital sales for the quarter.
Guidance is narrow and covers only the fourth quarter of fiscal 2021. Autodesk expects cost of revenue, marketing and sales, and research and development to increase in absolute dollars while holding flat as a percentage of net revenue, general and administrative expense to decrease on both measures, and amortization of purchased intangibles to be flat. The chief risks are customer concentration and currency. Tech Data accounted for 37% of total net revenue in the quarter and Ingram Micro for 10%. Reported net revenue growth of 13% trailed constant currency growth of 14%, so foreign exchange was a drag. Forecast U.S. taxable income was not enough to release the valuation allowance on U.S. deferred tax assets, and management flagged continued pandemic uncertainty for fiscal 2021 and beyond.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2021 | Q2 FY2021 | QoQ | Q3 FY2020 | YoY |
|---|---|---|---|---|---|
| Revenue | $952.4M | $913.1M | +4.3% | $842.7M | +13.0% |
| Gross profit | $868.7M | $832.2M | +4.4% | $763.2M | +13.8% |
| Gross margin | 91.2% | 91.1% | +0.1 pp | 90.6% | +0.6 pp |
| Research & development | $233.0M | $232.5M | +0.2% | $213.0M | +9.4% |
| Sales & marketing | $359.3M | $350.9M | +2.4% | $330.7M | +8.6% |
| General & administrative | $98.8M | $93.2M | +6.0% | $99.1M | -0.3% |
| Total operating expenses | $700.7M | $686.1M | +2.1% | $652.6M | +7.4% |
| Operating income (loss) | $168.0M | $146.1M | +15.0% | $110.6M | +51.9% |
| Operating margin | 17.6% | 16.0% | +1.6 pp | 13.1% | +4.5 pp |
| Net income (loss) | $132.2M | $98.2M | +34.6% | $66.7M | +98.2% |
| Net margin | 13.9% | 10.8% | +3.1 pp | 7.9% | +6.0 pp |
| Diluted EPS | $0.59 | $0.44 | +$0.15 | $0.30 | +$0.29 |
Risks
The filing says COVID-19 continues to create uncertainty, and MD&A notes usage levels were above pre-COVID-19 levels in parts of Asia and most of Europe but remained below pre-COVID-19 levels in the U.S. and parts of Europe. Autodesk extended payment terms to 60 days through August 7, 2020, offered free commercial use of cloud collaboration products through June 2020, delayed the multi-user to named-user license transition, and deferred a 20% maintenance price increase.
Tech Data accounted for 37% of total net revenue for both the three and nine months ended October 31, 2020, up from 35% in the prior-year periods, and Ingram Micro accounted for 10% of total net revenue. The filing also notes Apollo closed its acquisition of Tech Data on June 30, 2020, and reseller and end user uncertainty could negatively impact Autodesk's ability to sell through those channels.
Net revenue retention rate (NR3) was within 100% to 110% as of October 31, 2020, compared with 110% to 120% as of October 31, 2019. The filing says renewal rates may decline or fluctuate due to offering pricing, competitive offerings, customer satisfaction, and reductions in customer spending or number of users because of economic downturns, including COVID-19.
International net revenue represented 66% of net revenue for the nine months ended October 31, 2020, exposing Autodesk to global economic and political trends. The U.K. left the EU on January 31, 2020, with a transition period set to end December 31, 2020, and the filing cites risks of currency volatility, disrupted free movement of goods and people, and new trade agreement uncertainty.
MD&A says subscription revenue increased 24% for the quarter and 28% year to date, while maintenance revenue decreased 56% for the quarter and 50% year to date due to the M2S migration. Autodesk will retire maintenance plan offerings as of May 7, 2021 and is transitioning multi-subscription plans to named-user plans in fiscal 2021, with uncertain customer acceptance and pricing outcomes.
The filing notes several acquisitions in the second and third quarters of fiscal 2021, and in November 2020 Autodesk used approximately $200 million cash, net of cash acquired, to acquire Spacemaker AS. Risks include assimilating solutions and personnel, inheriting liabilities, failing to realize anticipated revenue and cost synergies, and diverting management attention.
The filing highlights expanding privacy laws, including GDPR, the CCPA effective January 2020, and the CPRA passed in November 2020 and expected to take effect January 1, 2023. It also notes legal challenges to the EU-U.S. Privacy Shield and European Commission model contractual clauses used for transferring personal data from the European Union to the United States.
Autodesk has $1.6 billion of debt and a $650.0 million unsecured revolving loan facility. Breaching credit agreement covenants could prevent borrowing under the facility and allow outstanding indebtedness to be declared immediately due and payable, and credit rating downgrades could increase interest rates or restrict future financing.
MD&A says total deferred revenue was $2.93 billion, a decrease of 2% compared to the fourth quarter in the prior fiscal year, and RPO was $3.58 billion, an increase of 1% compared to the fourth quarter in the prior fiscal year. RPO can change quarter to quarter due to renewal timing, contract duration, billing cycles, and foreign currency fluctuations.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Current RPO
Net Revenue Retention Rate (NR3)
Non-GAAP Gross Margin
Recurring Revenue as a Percentage of Net Revenue
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q3 FY2021 (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.