Summary
Autodesk's fiscal 2013 fourth quarter showed modest top-line growth but weaker operating profitability. Revenue for the quarter ended January 31, 2013 was $606.9 million, up 2.4% from the prior-year quarter. Gross profit rose 1.9% to $544.9 million. Gross margin slipped to 89.8%, down 0.5 percentage points. Operating income fell 7.8% to $84.6 million, and operating margin dropped to 13.9%, down 1.6 percentage points. Net income was $74.5 million, up 3.5%, and diluted EPS was $0.32, up $0.01. The quarter paired revenue growth with margin compression.
For the full fiscal year, the pattern was similar but more pronounced on the bottom line. Revenue for fiscal 2013 was $2.31 billion, up 4.4% from fiscal 2012. Gross profit was $2.07 billion, up 4.4%. Operating income fell 14.0% to $305.9 million, and operating margin was 13.2%, down 2.8 percentage points. Net income declined 13.3% to $247.4 million, and diluted EPS was $1.07, down $0.15. Gross margin for the year was 89.7%, flat versus the prior fiscal year. Operating cash flow for the full year was $559.1 million, down 2.5%, while fourth-quarter operating cash flow was $155.6 million, down 11.2%. The current portion of deferred revenue ended the year at $647.0 million, up 11.1% from the prior-year quarter.
The MD&A points to a business in transition. Suites revenue increased 16% for fiscal 2013 and represented 30% of net revenue, up from 27% in fiscal 2012. Flagship products were 56% of total net revenue, an increase of 1%, while new and adjacent products were 15%, a decrease of 3%. Segment performance was mixed. AEC revenue rose 11%, MFG rose 6%, and PSEB rose 2%. M&E revenue fell 10%, hurt by an 8% decline in Animation and a 16% decline in Creative Finishing. Geographically, the Americas grew 5%, APAC grew 9%, and EMEA grew 1%. Emerging economies revenue decreased 4% and fell to 14% of net revenue from 16%. International net revenue was 71% of the total, down from 72%. Tech Data accounted for 23% of consolidated net revenue in fiscal 2013 and 17% in fiscal 2012, a concentration worth watching.
Management also described a restructuring plan launched in the third quarter of fiscal 2013. The plan included a reduction of approximately 500 positions and the consolidation of eight leased facilities, with a total cost of up to $52.0 million. The company said the reorganization and its shift to cloud and mobile computing created execution challenges that hurt short-term financial results. For fiscal 2014, management expects net revenue to increase approximately 6% compared to fiscal 2013. It also expects fiscal 2014 operating margin to increase approximately 455 to 480 basis points compared to fiscal 2013. Cost of revenue is expected to increase in absolute dollars and slightly as a percentage of net revenue. Marketing and sales, research and development, and general and administrative expenses are each expected to increase in absolute dollars but remain relatively consistent as a percentage of net revenue.
Risks remain substantial. The MD&A cites weak global economic conditions, foreign exchange fluctuations, and economic volatility in emerging economies. It notes that international revenue is a majority of the total and that unfavorable conditions in key countries could hurt results. The M&E segment faces lower industry demand and product cannibalization from suites. The company also depends on major distributors and resellers, with Tech Data representing a significant share of revenue. Software piracy, talent scarcity, and poorly developed business infrastructure in emerging markets add further challenges. Autodesk's own reorganization and cloud transition carry execution risk. The fiscal 2014 guidance implies a sharp margin recovery, but the fiscal 2013 results show that operating leverage has been difficult to achieve.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2013 | Q3 FY2013 | QoQ | Q4 FY2012 | YoY |
|---|---|---|---|---|---|
| Revenue | $606.9M | $548.0M | +10.7% | $592.4M | +2.4% |
| Gross profit | $544.9M | $490.1M | +11.2% | $534.9M | +1.9% |
| Gross margin | 89.8% | 89.4% | +0.3 pp | 90.3% | -0.5 pp |
| Research & development | $149.4M | $153.0M | -2.4% | $149.5M | -0.1% |
| Sales & marketing | $236.0M | $203.9M | +15.7% | $233.5M | +1.1% |
| General & administrative | $67.7M | $62.1M | +9.0% | $60.1M | +12.6% |
| Total operating expenses | $460.3M | $455.7M | +1.0% | $443.1M | +3.9% |
| Operating income (loss) | $84.6M | $34.4M | +145.9% | $91.8M | -7.8% |
| Operating margin | 13.9% | 6.3% | +7.7 pp | 15.5% | -1.6 pp |
| Net income (loss) | $74.5M | $29.4M | +153.4% | $72.0M | +3.5% |
| Net margin | 12.3% | 5.4% | +6.9 pp | 12.2% | +0.1 pp |
| Diluted EPS | $0.32 | $0.13 | +$0.19 | $0.31 | +$0.01 |
Risks
Global economic weakness and uncertainty, including U.S. fiscal cliff and sequestration, have led customers to reduce workforces and purchases of licenses and maintenance contracts, and may continue to pressure revenue and require restructuring charges.
During fiscal 2013, Autodesk undertook organizational changes and a company-wide restructuring plan with approximately 500 position reductions and consolidation of eight leased facilities, incurring $43.9 million of the up to $52.0 million total cost; execution challenges impacted short-term financial results and additional actions may harm operating margins.
Industry shift from PC to cloud, mobile and social computing lowers barriers to entry and poses a disruptive challenge; Autodesk is investing heavily in cloud/mobile offerings, but customer adoption may not occur as rapidly as anticipated and revenue recognition changes could negatively impact financial performance.
Software industry has limited barriers to entry and vigorous competition, with some competitors having greater financial, technical, sales and marketing resources; increased competition could result in price reductions, reduced net revenue and profit margins, and loss of market share.
Tech Data Corporation and its global affiliates accounted for 23% of total net revenue for fiscal year ended January 31, 2013, up from 17% in fiscal 2012 and 16% in fiscal 2011; a significant disruption or deterioration in this relationship could negatively impact sales and financial results.
A significant portion of revenue is generated through maintenance revenue; customers have no obligation to attach or renew maintenance contracts, and decreases in attach or renewal rates or in new license sales would negatively impact future revenue and financial results.
International net revenue represented 71% of net revenue in fiscal 2013 and 72% in fiscal 2012, exposing Autodesk to regulatory, economic, intellectual property, collections, currency, taxation and political risks; revenue from emerging economies decreased 4% in fiscal 2013 and represented 14% of net revenue.
Combined revenue from AutoCAD and AutoCAD LT products, not including suites, represented 33% of total net revenue for fiscal year ended January 31, 2013; any factor adversely affecting sales of these products would likely harm financial results.
Operating expenses increased $136.9 million or 8% in fiscal 2013 while net revenue increased $96.6 million or 4%, and operating margin decreased from 16% in fiscal 2012 to 13% in fiscal 2013, primarily due to higher employee-related costs and restructuring charges.
Autodesk regularly acquires or invests in businesses and technologies, and the recent increase in acquisitions exacerbates integration risks, including failure to realize anticipated revenue and cost projections, diversion of management attention, and potential impairment charges.
In December 2012, Autodesk issued $750.0 million aggregate principal amount of senior unsecured notes and has a $400.0 million revolving credit facility; debt service, refinancing risk, and covenants may adversely affect financial condition and future results.
Autodesk has seen an increase in litigation activity and regulatory inquiries; significant disputes or formal regulatory actions could result in costly defense, damage awards, injunctive relief, fines, or changes to business practices.
Media and Entertainment net revenue decreased 10% in fiscal 2013 compared to fiscal 2012, driven by an 8% decrease in Animation revenue and a 16% decrease in Creative Finishing revenue, related to general decrease in M&E industry end-market demand.
Days sales outstanding in trade receivables was 74 at January 31, 2013 compared to 61 at January 31, 2012, due to higher billings in the last month of fiscal 2013, which increases collection risk.
SaaS KPIs
All quarters →Deferred Revenue
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q4 FY2013 (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.