Summary
Autodesk's fiscal 2024 third quarter showed steady top-line growth and much stronger profitability. Revenue was $1.41 billion, up 10.5% from the prior-year quarter. Gross profit was $1.29 billion, up 10.9%. Operating income was $334 million, up 30.5%. Net income was $241 million, up 21.7%. Diluted EPS was $1.12, up 23.1%. Gross margin reached 91.0%, up 0.4 percentage points. Operating margin was 23.6%, up 3.6 percentage points. On a year-to-date basis, revenue was $4.03 billion, up 9.2%, and operating income was $813 million, up 14.2%. Net income was $624 million, up 17.7%, and diluted EPS was $2.89, up 18.9%.
The product mix was led by AEC, where revenue rose 17% to $675 million, and by Make, where revenue rose 15% to $134 million. Design grew 10% as reported and 12% at constant currency. AutoCAD and AutoCAD LT revenue increased 5% to $372 million, while MFG revenue rose 6% to $269 million. Media and entertainment revenue fell 6% to $73 million, which management attributed to upfront revenue from a multi-year contract in the prior-year quarter that did not recur. Subscription plan revenue grew 11% as reported and 13% at constant currency. Recurring revenue represented 98% of total revenue. Net revenue retention rate stayed in the 100% to 110% range on a constant currency basis. Total billings fell 11% to $1,204 million. Current remaining performance obligations were $3.52 billion, up 12%.
Cash generation was the weak spot. Operating cash flow was $18 million, down 96.2% from the prior-year quarter. Year to date operating cash flow was $876 million, down 24.5%. Capital expenditures were $5 million in the quarter, down 44.4%, and $21 million year to date, down 34.4%. Free cash flow was $13 million, down $447 million from the prior-year quarter. Current deferred revenue was $3.12 billion, up 14.2% from the prior-year quarter. The company said the operating cash flow decline reflected timing of billing installments and seasonality, with deferred revenue down during the nine months.
Management raised revenue, EPS, and free cash flow guidance. For the fourth quarter of fiscal 2024, revenue is expected at $1,422 million to $1,437 million, GAAP EPS at $0.99 to $1.05, and non-GAAP EPS at $1.91 to $1.97. For the full fiscal year 2024, revenue is expected at $5,450 million to $5,465 million, up approximately 9%, with billings of $5,075 million to $5,175 million, down 12% to 11%. Full-year GAAP EPS is guided to $3.88 to $3.94, non-GAAP EPS to $7.43 to $7.49, and free cash flow to $1,200 million to $1,260 million. GAAP operating margin is expected to be approximately flat year over year. The outlook assumes a projected annual effective tax rate of 24 percent for GAAP results and 18 percent for non-GAAP results.
Risks remain familiar. Autodesk depends on major distributors, with TD Synnex at 39% of total net revenue in the quarter and Ingram Micro at 7%. The shift to annual billings for multi-year contracts can affect the timing of billings and cash collections. Foreign exchange was a negative factor for reported net revenue. Management also flagged global economic conditions, geopolitical conflicts, supply chain pressures, higher interest rates, and labor shortages. Even with those risks, the quarter featured the largest enterprise business agreement in company history and record contributions from construction and water verticals.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2024 | Q2 FY2024 | QoQ | Q3 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.41B | $1.34B | +5.1% | $1.28B | +10.5% |
| Gross profit | $1.29B | $1.22B | +5.7% | $1.16B | +10.9% |
| Gross margin | 91.0% | 90.6% | +0.5 pp | 90.6% | +0.4 pp |
| Research & development | $339.0M | $355.0M | -4.5% | $311.0M | +9.0% |
| Sales & marketing | $439.0M | $449.0M | -2.2% | $454.0M | -3.3% |
| General & administrative | $165.0M | $141.0M | +17.0% | $129.0M | +27.9% |
| Total operating expenses | $953.0M | $956.0M | -0.3% | $904.0M | +5.4% |
| Operating income (loss) | $334.0M | $262.0M | +27.5% | $256.0M | +30.5% |
| Operating margin | 23.6% | 19.5% | +4.1 pp | 20.0% | +3.6 pp |
| Net income (loss) | $241.0M | $222.0M | +8.6% | $198.0M | +21.7% |
| Net margin | 17.0% | 16.5% | +0.5 pp | 15.5% | +1.6 pp |
| Diluted EPS | $1.12 | $1.03 | +$0.09 | $0.91 | +$0.21 |
Risks
Global economic and political conditions, including the wars between Russia and Ukraine and Israel and Hamas, supply chain disruption, inflation, higher interest rates, and government spending cuts, may reduce customer demand. The filing notes deceleration in China and APAC net revenue declined 2% in the quarter and was flat year to date.
Operating cash flow decreased to $876 million for the nine months ended October 31, 2023 from $1.16 billion for the nine months ended October 31, 2022. Management attributes part of the decrease to a $551 million decrease in deferred revenue from billing timing and seasonality, and expects the shift from multi-year upfront billings to annual billing installments to reduce the unbilled portion of RPO and negatively impact total RPO growth rates.
TD Synnex accounted for 40% of total net revenue for the nine months ended October 31, 2023, up from 37% in the prior-year period, and Ingram Micro accounted for 8%, down from 9%. Transition distribution agreements with these distributors run for one to two years; a significant business disruption or deterioration with either could temporarily impair Autodesk's ability to sell to end users.
Autodesk is transitioning its indirect business to a new transaction model where channel partners provide quotes but transactions occur directly with Autodesk, with major market rollout planned in fiscal 2025 and 2026. Management expects the change to positively impact revenue growth while having a negative impact on operating margin near term.
Autodesk is increasingly building AI into its offerings and expects AI to help drive future growth, but competitors may incorporate AI more quickly or more successfully, which could impair its ability to compete. AI offerings may also expose Autodesk to lawsuits, regulatory investigations, cybersecurity incidents, and reputational harm, and AI ethics regulation could increase R&D costs.
Recurring revenue was 98% of net revenue for both the three and nine months ended October 31, 2023, and NR3 was within 100% to 110% on a constant currency basis. However, customers are not obligated to renew, and renewal rates may decline or fluctuate due to pricing, competitive offerings, customer satisfaction, or reductions in customer spending.
Combined revenue from AutoCAD and AutoCAD LT family products represented 27% of total net revenue for the nine months ended October 31, 2023, down from 28% in the prior-year period. A critical growth strategy depends on migrating these customers to Industry Collections and cloud-based functionality.
International net revenue represented 64% of net revenue for the nine months ended October 31, 2023, down from 66% in the prior-year period. Risks include tariffs, sanctions, currency fluctuations, trade protectionism, and regulatory changes across international markets.
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 (NR3)
Recurring Revenue as % of Net Revenue
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q3 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.