Summary
Autodesk closed fiscal 2012 with fourth-quarter revenue of $592.4 million, up 12.3% from the prior-year quarter. Full-year revenue reached $2.22 billion, up 13.5% from fiscal 2011. Gross profit in the quarter was $534.9 million, up 11.6%, while gross margin slipped to 90.3%, down 0.5 percentage points. Operating income rose 28.2% to $91.8 million, and operating margin expanded to 15.5%, up 1.9 percentage points. Net income was $72.0 million, up 16.9%, and diluted EPS was $0.31, up $0.05. For the full year, net income was $285.3 million, up 34.6%, and diluted EPS was $1.22, up $0.32. Full-year gross profit was $1.99 billion, up 13.2%, and full-year operating income was $355.6 million, up 31.0%. Full-year gross margin was 89.7%, down 0.3 percentage points, and full-year operating margin was 16.0%, up 2.1 percentage points.
Operating cash flow was $175.2 million in the quarter, flat versus the prior-year quarter. Full-year operating cash flow was $573.5 million, up 6.0%. Deferred revenue, current portion, was $582.3 million at January 31, 2012, up 17.4% from a year earlier. The company's non-GAAP results were stronger. Non-GAAP net income was $405.4 million for fiscal 2012, and non-GAAP diluted EPS was $1.74. Non-GAAP operating margin was 24%, compared with 21% in fiscal 2011. Non-GAAP gross margin was 92%, compared with 92% in fiscal 2011.
Operational momentum came from suites and emerging markets. Revenue from suites increased 31% in fiscal 2012 and represented 27% of net revenue, up from 23% in fiscal 2011. Revenue from emerging economies increased 16% and represented 16% of net revenue, up from 15%. Subscription program enrollment was about 3.2 million users at January 31, 2012, up from 2.9 million users a year earlier. Net maintenance billings increased 19% in fiscal 2012. Flagship products were 58% of net revenue and grew 8%, while new and adjacent products were 16% of net revenue and grew 8%.
Management issued full-year guidance for fiscal 2013. Autodesk expects net revenue to increase by approximately 10% compared to fiscal 2012. It expects operating margin to increase by approximately 130 basis points compared to fiscal 2012. The company plans to keep growing its desktop business, migrate products to the cloud, and expand into new markets. Acquisitions increased in number, pace, and dollars spent in fiscal 2012 compared with fiscal 2011. Risks include weak global economic conditions, high unemployment, limited credit availability, foreign exchange volatility, and challenges in emerging economies such as economic volatility, geopolitical risk, local competition, intellectual property protection, poor business infrastructure, talent scarcity, and software piracy.
Distributor concentration is a notable risk. Tech Data and its global affiliates accounted for 17% of consolidated net revenue during fiscal 2012. If Tech Data's acquisition of Mensch und Maschine Software assets had taken place at the beginning of fiscal 2011, Tech Data would have accounted for 21% and 22% of net revenue for fiscal 2012 and 2011. On a constant currency basis, fiscal 2012 net revenue would have increased 12% compared to fiscal 2011. Total spend increased 11% as reported and 13% on a constant currency basis. Autodesk ended the year with a higher deferred revenue balance and a higher accounts receivable balance compared to fiscal 2011. Days sales outstanding in trade receivables was 61 at January 31, 2012, compared to 55 at January 31, 2011.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2012 | Q3 FY2012 | QoQ | Q4 FY2011 | YoY |
|---|---|---|---|---|---|
| Revenue | $592.4M | $548.6M | +8.0% | $527.7M | +12.3% |
| Gross profit | $534.9M | $489.0M | +9.4% | $479.3M | +11.6% |
| Gross margin | 90.3% | 89.1% | +1.2 pp | 90.8% | -0.5 pp |
| Research & development | $149.5M | $141.2M | +5.9% | $126.9M | +17.8% |
| Sales & marketing | $233.5M | $206.2M | +13.2% | $226.9M | +2.9% |
| General & administrative | $60.1M | $51.4M | +16.9% | $52.1M | +15.4% |
| Total operating expenses | $443.1M | $398.8M | +11.1% | $407.7M | +8.7% |
| Operating income (loss) | $91.8M | $90.2M | +1.8% | $71.6M | +28.2% |
| Operating margin | 15.5% | 16.4% | -0.9 pp | 13.6% | +1.9 pp |
| Net income (loss) | $72.0M | $72.8M | -1.1% | $61.6M | +16.9% |
| Net margin | 12.2% | 13.3% | -1.1 pp | 11.7% | +0.5 pp |
| Diluted EPS | $0.31 | $0.32 | -$0.01 | $0.26 | +$0.05 |
Risks
Global economic uncertainty, sovereign debt issues, and weak credit conditions may reduce customer spending on licenses and maintenance. MD&A states that if global economic conditions deteriorate, Autodesk may not achieve its fiscal 2013 financial goals.
Tech Data and its global affiliates accounted for 17% of consolidated net revenue in fiscal 2012, up from 16% in fiscal 2011, and would have accounted for 21% if the MuM asset acquisition had occurred at the start of fiscal 2011. A significant disruption or deterioration in this distributor relationship could temporarily impair sales to end users.
Approximately 84% of fiscal 2012 revenue was derived from indirect channel sales through distributors and resellers. The risk factor notes these partners are not highly capitalized and the consolidation between two important distributors could harm revenue if sell-through or financial condition weakens.
A significant portion of revenue is generated through maintenance revenue, and customers have no obligation to attach or renew maintenance after the typical one-year term. A decline in attach or renewal rates, or fewer new licenses sold, would reduce future maintenance revenue and financial results.
MD&A states Autodesk expects suites to increase as a percentage of revenue while flagship and new adjacent products decline as a percentage. If customers do not migrate from standalone AutoCAD and AutoCAD LT products to suites, results of operations could be adversely affected.
MD&A says the industry is transitioning from the personal computer to cloud, mobile, and social computing, and Autodesk's growth strategy is predicated on leading that transition. Failure to adapt products to cloud computing, mobile devices, and new platforms may reduce product sales and competitive position.
International net revenue represented 72% of fiscal 2012 net revenue, and emerging economies represented 16% and grew 16% in fiscal 2012. Risks include economic volatility, geopolitical risk, local competition, intellectual property protection, poorly developed infrastructure, talent scarcity, and software piracy.
MD&A states Autodesk increased the number, pace, and dollars spent on acquisitions in fiscal 2012 compared to fiscal 2011. Integration challenges, failure to realize anticipated revenue and cost projections, and impairment of investments could negatively affect results.
The software industry has limited barriers to entry, and some competitors in certain markets have greater financial, technical, sales, and marketing resources. Rapid technological changes, including cloud, mobile, and new computing platforms, could reduce net revenue and profit margins.
Quarterly financial results have fluctuated and may continue to do so, and operating expenses are relatively fixed in the short term. A revenue shortfall below expectations could have an immediate and significant adverse effect on profitability.
Autodesk has seen an increase in litigation activity and regulatory inquiries as the global economy changed and its business evolved. Significant disputes or formal regulatory actions could result in costly defense, damage awards, injunctive relief, fines, or changes to business practices.
Combined revenue from AutoCAD and AutoCAD LT products, excluding suites, represented 33% of total net revenue in fiscal 2012. Any factor adversely affecting sales of these products, including product release cycle, competition, or market acceptance, would likely harm financial results.
Software piracy remains a persistent problem, and unauthorized copying of Autodesk products or disclosure of source code could harm financial performance and reputation. Policing unauthorized use is time-consuming and costly.
SaaS KPIs
All quarters →Total Subscription Program Enrollment
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q4 FY2012 (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.