Summary
Autodesk closed fiscal 2011 with a stronger fourth quarter. Revenue rose 15.7% to $527.7 million from $456.1 million in the prior-year quarter. Gross profit increased 16.4% to $479.3 million. Operating income climbed 27.9% to $71.6 million. Net income advanced 23.0% to $61.6 million. Diluted EPS was $0.26, up $0.05 from $0.21. Gross margin was 90.8%, up 0.6 percentage points. Operating margin was 13.6%, up 1.3 percentage points. Operating cash flow was $175.9 million, up 40.0%. Capital expenditures were $10.2 million, up 15.9%. Deferred revenue, current portion, was $496.2 million, up 11.6%.
For the full fiscal year, revenue was $1.95 billion, up 13.9% from $1.71 billion. Gross profit was $1.76 billion, up 15.3%. Operating income was $271.4 million, up 313.7% from $65.6 million. Net income was $212.0 million, up 265.5% from $58.0 million. Diluted EPS was $0.90, up $0.65 from $0.25. Operating cash flow was $540.8 million, up 119.1%. Capital expenditures were $28.3 million, down 27.4%. Gross margin was 89.9%, up 1.1 percentage points from 88.8%. Operating margin was 13.9%, up 10.1 percentage points from 3.8%. Non-GAAP operating margin was 21%, and non-GAAP net income was $310.4 million, or $1.32 per diluted share. Non-GAAP gross margin was 92%, and non-GAAP income from operations was $418.8 million.
Operational highlights show broad-based growth. Revenue from model-based design products increased 18% for fiscal 2011, and Suites revenue increased 26%. Emerging countries revenue increased 17% and represented 15% of net revenue. Maintenance revenue increased 6%, with commercial maintenance up 7%. Subscription enrollment was about 2.9 million users at January 31, 2011, up from 2.2 million users a year earlier. Backlog was $615.4 million, compared with $542.5 million. By geography, Americas revenue increased 7%, EMEA increased 17%, and APAC increased 20%. By segment, PSEB increased 15%, AEC increased 11%, MFG increased 22%, and M&E increased 5%. The company repurchased 9.0 million shares for $280.3 million during fiscal 2011. At January 31, 2011, 24.5 million shares remained available for repurchase under the existing authorization. The company said its subscription program provides customers with a cost effective and predictable budgetary option.
Guidance points to slower growth but higher margins. For fiscal 2012, Autodesk expects net revenue to increase approximately 10% compared with fiscal 2011. It expects operating margin to increase approximately 220 basis points compared with fiscal 2011. The company flagged uncertainty from the March 2011 earthquake and tsunami in Japan. Other risks include high unemployment in several important geographies, including the U.S., and mixed data on credit availability. Foreign currency fluctuations can affect results; the company uses hedge contracts but does not fully mitigate the impact. Tech Data accounted for 16% of consolidated net revenue in fiscal 2011 and 14% in fiscal 2010. Emerging markets carry economic volatility, geopolitical risk, local competition, intellectual property protection, poorly developed business infrastructure, scarcity of talent, and software piracy. Acquisitions bring cost and integration challenges and may negatively impact operating margins. Goodwill impairment charges may be recorded if revenue and cash flow projections decline significantly. The company remains cautious about the sustainability of the global economic recovery. International revenue will continue to comprise a majority of total net revenue. Autodesk has a $250.0 million U.S. line of credit with no borrowings outstanding. The company also cited risks from economic volatility and geopolitical activities in certain countries, particularly emerging economy countries.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2011 | Q3 FY2011 | QoQ | Q4 FY2010 | YoY |
|---|---|---|---|---|---|
| Revenue | $527.7M | $476.7M | +10.7% | — | — |
| Gross profit | $479.3M | $428.2M | +11.9% | — | — |
| Gross margin | 90.8% | 89.8% | +1.0 pp | — | — |
| Research & development | $126.9M | $122.8M | +3.3% | — | — |
| Sales & marketing | $226.9M | $185.1M | +22.6% | — | — |
| General & administrative | $52.1M | $51.1M | +2.0% | — | — |
| Total operating expenses | $407.7M | $359.0M | +13.6% | — | — |
| Operating income (loss) | $71.6M | $69.2M | +3.5% | — | — |
| Operating margin | 13.6% | 14.5% | -0.9 pp | — | — |
| Net income (loss) | $61.6M | $53.6M | +14.9% | — | — |
| Net margin | 11.7% | 11.2% | +0.4 pp | — | — |
| Diluted EPS | $0.26 | $0.23 | +$0.03 | — | — |
Risks
MD&A states that while some global macroeconomic indicators improved during fiscal 2011, unemployment remains high in several important geographies including the U.S., credit availability is mixed, and Autodesk remains cautious about the sustainability of the global economic recovery. A deceleration or reversal could cause customers to defer, reduce or cancel purchases, pressuring revenue after FY2011 net revenue rose 13.9% year over year.
MD&A discloses that net revenue from Japan was $200.6 million, or approximately 10% of net revenue, for fiscal 2011, and the March 2011 earthquake and tsunami created uncertainty that may impact future financial results.
A significant portion of revenue is maintenance revenue; customers have no obligation to attach or renew maintenance after the initial term, and decreases in attach or renewal rates or in new license sales would reduce future maintenance revenue. FY2011 maintenance revenue increased 6% and net maintenance billings increased 14%, but the risk remains material.
Tech Data Corporation and its global affiliates accounted for 16% of consolidated net revenue in fiscal 2011, up from 14% in fiscal 2010, and approximately 85% of FY2011 revenue was derived from indirect channel sales. Insolvency or loss of a major distributor could impair distribution and cash flows.
Combined revenue from AutoCAD and AutoCAD LT products represented 33% of consolidated net revenue for fiscal 2011. Any factor adversely affecting sales of these products, including release cycles, competition, or market acceptance, would likely harm financial results.
International net revenue represented 71% of net revenue in fiscal 2011, up from 69% in fiscal 2010, and emerging economies represented 15% of net revenue. This exposes Autodesk to regulatory, currency, intellectual property, corruption, geopolitical and collection risks.
The software industry has limited barriers to entry, and Autodesk faces vigorous competition and rapid technological change, including cloud computing, mobile devices, and new computing platforms. Failure to adapt could reduce net revenue and profit margins.
Autodesk is expanding its portfolio of Suites and other new business and sales initiatives; if assumptions about expenses, revenue, or revenue recognition prove incorrect, actual results may vary materially. FY2011 Suites revenue increased 26% and represented 23% of revenue, up from 20% in fiscal 2010.
Autodesk regularly acquires businesses, products, and technologies; integration challenges, inherited liabilities, failure to realize projections, and diversion of management could negatively impact results and cause quarterly fluctuations. MD&A notes acquisitions may negatively impact operating margins.
Autodesk is involved in legal proceedings and receives regulatory inquiries, and litigation activity has increased as the global economy changed and business evolved. Unfavorable outcomes could result in defense costs, damage awards, injunctive relief, fines, or changes to business practices.
A breach of security in products or computer systems, or at third-party hosting providers, could compromise source code or customer data, harm reputation, create liability, and adversely impact financial results.
Autodesk conducts substantial business outside the U.S. and uses hedges that may not be successful. MD&A notes FY2011 revenue benefited from foreign exchange; on a constant currency basis net revenue would have increased 13% versus 14% as reported.
Changes in accounting standards or tax rules, including potential IFRS adoption and revenue recognition changes, could materially affect reported results. Autodesk also has $147.5 million of net deferred tax assets that may require adjustment if future profitability changes.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Aggregate backlog
Non-GAAP Gross Margin
Total Subscription Program Enrollment
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q4 FY2011 (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.