Summary
Autodesk reported steady growth for the third quarter of fiscal 2022, ended October 31, 2021. Revenue rose 18.2 percent to $1,126 million. Gross profit was $1,018.7 million, up 17.3 percent, while the gross margin slipped to 90.5 percent, down 0.7 percentage points. Billings increased 16 percent to $1,168 million. Current remaining performance obligations grew 21 percent to $2.88 billion, and total remaining performance obligations rose 18 percent to $4.23 billion. Current deferred revenue was $2.56 billion, up 18.6 percent. Recurring revenue accounted for 97 percent of total revenue, and the net revenue retention rate stayed within the 100 to 110 percent range.
The quarter leaned on the subscription model. Growth came from subscription plans, enterprise business agreements and cloud offerings, while maintenance revenue kept shrinking as customers moved off the older plans. Demand was broad based rather than concentrated in one region or one product family. AEC remained the largest piece of the business and grew fastest among the main families, helped by collections, enterprise agreements and the water infrastructure software brought in with Innovyze. AutoCAD and AutoCAD LT, manufacturing, and media and entertainment all contributed growth as well. Direct sales outpaced the indirect channel, supported by enterprise agreements and the online Autodesk branded store, and acquisitions over the past year widened the product set.
Profitability improved in dollar terms but not as a share of revenue. Operating income was $193.3 million, up 15.1 percent from the prior-year quarter, and the operating margin was 17.2 percent, down 0.5 percentage points. Net income rose 3.4 percent to $136.7 million, and diluted earnings per share were $0.61, up 3.4 percent. Tax expense increased on the jurisdictional mix of earnings and the release of the U.S. valuation allowance at the end of the prior fiscal year. Non-GAAP results looked stronger, with non-GAAP operating income of $365 million, a non-GAAP operating margin of 32 percent, up 2 percentage points, and non-GAAP diluted earnings per share of $1.33.
Through the first nine months of fiscal 2022, revenue was $3,174.8 million, up 15.4 percent, and operating income rose 6.9 percent to $475.2 million. Diluted earnings per share for the nine months were $1.83, up 36.6 percent. Operating cash flow for the nine months was $808.5 million, up 3.7 percent, and capital expenditures were $49.5 million, down 26.8 percent.
Cash flow softened in the quarter itself. Operating cash flow was $270.4 million, down 25.1 percent, and capital expenditures were $13.4 million, down 35.9 percent. Free cash flow was $257 million, a decrease of $83 million from the prior-year quarter. The company repurchased 1.7 million shares for $476.0 million during the nine months ended October 31, 2021. Receivables and deferred revenue move with the seasonality of billings, and the fourth fiscal quarter typically carries heavier enterprise agreement activity.
Guidance for the fourth quarter of fiscal 2022 calls for non-GAAP diluted earnings per share of $1.41 to $1.47. For the full fiscal year, Autodesk expects billings of $4,740 million to $4,800 million, up 14 to 16 percent, non-GAAP diluted earnings per share of $4.98 to $5.04, and free cash flow of $1,420 million to $1,460 million. Management pointed to supply chain disruption and the resulting inflationary pressure, a global labor shortage, and the ebb and flow of COVID as factors that are slowing the pace of recovery and shaping the outlook. The company also expects to shrink its facilities footprint and could record impairment charges of up to approximately $180 million on real estate leases over the next several quarters. Maintenance revenue should keep declining, and channel concentration is a standing risk, with Tech Data at 37 percent of total net revenue in the quarter and Ingram Micro at 9 percent.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2022 | Q2 FY2022 | QoQ | Q3 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.13B | $1.06B | +6.2% | $952.4M | +18.2% |
| Gross profit | $1.02B | $954.3M | +6.7% | $868.7M | +17.3% |
| Gross margin | 90.5% | 90.0% | +0.4 pp | 91.2% | -0.7 pp |
| Research & development | $282.1M | $276.9M | +1.9% | $233.0M | +21.1% |
| Sales & marketing | $419.4M | $398.8M | +5.2% | $359.3M | +16.7% |
| General & administrative | $112.8M | $119.4M | -5.5% | $98.8M | +14.2% |
| Total operating expenses | $825.4M | $806.2M | +2.4% | $700.7M | +17.8% |
| Operating income (loss) | $193.3M | $148.1M | +30.5% | $168.0M | +15.1% |
| Operating margin | 17.2% | 14.0% | +3.2 pp | 17.6% | -0.5 pp |
| Net income (loss) | $136.7M | $115.6M | +18.3% | $132.2M | +3.4% |
| Net margin | 12.1% | 10.9% | +1.2 pp | 13.9% | -1.7 pp |
| Diluted EPS | $0.61 | $0.52 | +$0.09 | $0.59 | +$0.02 |
Risks
Supply chain disruption, inflationary pressures, and a global labor shortage are currently impacting the pace of Autodesk's recovery and outlook, and COVID-19 variants or renewed restrictions could slow growth. MD&A also notes deceleration in growth in certain geographies including China.
Autodesk identified a compromised SolarWinds server and expects hackers to continue targeting its systems; work-from-home arrangements compound the risk. A security incident could disrupt customer operations, expose sensitive data, and lead to regulatory inquiry, lawsuits, and significant remediation costs.
Customers are not obligated to renew subscriptions, and renewal rates may decline or fluctuate due to pricing, competitive offerings, customer satisfaction, or reduced spending. Autodesk cannot assure renewal rates or subscription mix, and MD&A reports NR3 was within 100% and 110% as of both October 31, 2021 and 2020.
Autodesk derives a substantial portion of net revenue from AutoCAD-based products; combined revenue from AutoCAD and AutoCAD LT family products, excluding collections, was 29% of total net revenue for the nine months ended October 31, 2021. Distributor Tech Data accounted for 37% and 36% of total net revenue for the three and nine months ended October 31, 2021.
Autodesk is increasingly building AI into many offerings, and social or ethical controversies, or new government regulation of AI ethics, could cause reputational harm, competitive harm, or legal liability and increase R&D costs.
Autodesk regularly acquires businesses and technologies, including Innovyze, Upchain, and Spacemaker, and faces integration, retention, liability, and synergy risks. Acquisitions also increase amortization expense and can cause quarterly fluctuations.
International net revenue represented 67% and 66% of net revenue for the nine months ended October 31, 2021 and 2020, exposing Autodesk to Brexit, trade tensions, tariffs, and currency volatility. MD&A shows foreign exchange had a positive impact on net revenue but a negative impact on total spend.
Competition for highly skilled technical, professional, managerial, sales, and marketing personnel is intense, and a global labor shortage could make it difficult to attract and retain key employees needed for timely product introductions and financial goals.
Changes in U.S. and foreign tax laws, including proposed increases in corporate tax rates by the current U.S. administration and OECD-led tax changes, could increase Autodesk's effective tax rate and cash taxes. Tax authorities are increasingly scrutinizing existing corporate tax regimes.
MD&A states Autodesk expects to reduce its facilities portfolio worldwide and could incur impairment charges of up to approximately $180 million over the next several quarters as it shifts to a hybrid workforce.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Remaining Performance Obligations (RPO)
Free Cash Flow
Billings
Current RPO
Unbilled Deferred Revenue
Recurring Revenue as % of Net Revenue
Net Revenue Retention Rate
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q3 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.