Summary
Autodesk closed fiscal 2023 with fourth-quarter revenue of $1.318 billion, up 8.8% from the prior-year quarter. Gross profit was $1.194 billion, up 8.6%, while gross margin was 90.6%, down 0.2 percentage points. GAAP operating income rose 93.7% to $277 million, and operating margin was 21.0%, up 9.2 percentage points. Net income was $293 million, up 229.2%. For the full fiscal year, revenue was $5.005 billion, up 14.1%; operating income was $989 million, up 60.0%; net income was $823 million, up 65.6%; and diluted EPS was $3.78, up $1.54. Non-GAAP results also improved. Fourth-quarter non-GAAP operating income was $479 million versus $421 million a year earlier, non-GAAP operating margin was 36%, up 1 percentage point, and non-GAAP diluted EPS was $1.86 versus $1.50. Full-year non-GAAP diluted EPS was $6.63 versus $5.07.
Cash generation stood out. Fourth-quarter operating cash flow was $911 million, up 26.2%, and capital expenditures were $8 million, up 33.3%. Free cash flow, which the company defines as operating cash flow minus capital expenditures, was $903 million, an increase of $187 million. For the full year, operating cash flow was $2.071 billion, up 35.3%, and capital expenditures were $40 million, down 28.6%. Deferred revenue reached $3.203 billion at January 31, 2023, up 11.9%. Remaining performance obligations were $5.620 billion, up 18.6%, and unbilled deferred revenue was $1.043 billion, an increase of $94 million compared with the fourth quarter of last year.
Operational metrics showed momentum. Fourth-quarter billings rose 28% to $2.12 billion, and full-year billings rose 20% to $5.80 billion. Current remaining performance obligations increased 12% to $3.52 billion. The net revenue retention rate stayed within the 100% to 110% range, and recurring revenue was 98% of total revenue. Total subscriptions ended fiscal 2023 at 6.74 million, up approximately 702 thousand from fiscal 2022. Management said the company closed its largest deal to date during the quarter.
Guidance points to slower reported growth. For the full fiscal year 2024, Autodesk guided billings down 13% to 11% (down 11% to 9% excluding foreign exchange) and revenue up 7% to 9% (up 11% to 13% excluding foreign exchange). GAAP and non-GAAP operating margins are both expected to be approximately flat year over year. For the first quarter of fiscal 2024, the company guided non-GAAP diluted EPS of $1.50 to $1.56. For the full fiscal year 2024, it guided non-GAAP diluted EPS of $6.98 to $7.32 and free cash flow of $1.150 billion to $1.250 billion. The outlook assumes a 24% annual effective tax rate for GAAP results and 18% for non-GAAP results.
Risks remain front and center. The annual report cites supply chain disruption, inflationary pressures, higher interest rates, a global labor shortage, the ebb and flow of COVID-19, the war in Ukraine, and foreign exchange swings as factors that may affect results. Autodesk also expects the transition to annual billings for multi-year contracts to change the timing of billings and cash collections. Channel concentration is notable: Tech Data represented 37% of total net revenue in fiscal 2023 and Ingram Micro 9%. Acquisitions carry integration and cost risks, and the company lists competition, rapid technological change, export and import controls, privacy laws, and security incidents among its exposures.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2023 | Q3 FY2023 | QoQ | Q4 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.32B | $1.28B | +3.0% | $1.21B | +8.8% |
| Gross profit | $1.19B | $1.16B | +2.9% | $1.10B | +8.7% |
| Gross margin | 90.6% | 90.6% | -0.0 pp | 90.7% | -0.1 pp |
| Research & development | $313.0M | $311.0M | +0.6% | $290.3M | +7.8% |
| Sales & marketing | $439.0M | $454.0M | -3.3% | $427.8M | +2.6% |
| General & administrative | $155.0M | $129.0M | +20.2% | $227.6M | -31.9% |
| Total operating expenses | $917.0M | $904.0M | +1.4% | $956.0M | -4.1% |
| Operating income (loss) | $277.0M | $256.0M | +8.2% | $142.4M | +94.5% |
| Operating margin | 21.0% | 20.0% | +1.0 pp | 11.8% | +9.3 pp |
| Net income (loss) | $293.0M | $198.0M | +48.0% | $89.1M | +228.8% |
| Net margin | 22.2% | 15.5% | +6.8 pp | 7.3% | +14.9 pp |
| Diluted EPS | $1.34 | $0.91 | +$0.43 | $0.40 | +$0.94 |
Risks
The filing and MD&A highlight global economic and political conditions, including supply chain disruption, inflationary pressures, higher interest rates, a global labor shortage, COVID-19, and the war in Ukraine. MD&A states these may impact the fiscal 2024 outlook, and customers may delay or reduce technology purchases, which has been seen in certain countries including China.
International net revenue represented 66% of net revenue for fiscal 2023 compared with 67% for fiscal 2022, making Autodesk highly exposed to global economic and political trends. The filing notes recent deceleration in certain geographies including China, plus risks from trade protectionism, sanctions, tariffs, and the war in Ukraine.
Tech Data accounted for 37% of total net revenue for fiscal 2023 and Ingram Micro 9%. Autodesk entered transition agreements with both distributors in October and November 2022 for one to two years; disruption or deterioration during the transition could negatively impact its ability to sell to end users.
Combined revenue from AutoCAD and AutoCAD LT family products represented 28% of total net revenue for fiscal 2023 and 29% for fiscal 2022. If sales of these offerings decrease without a corresponding increase in Industry Collections or cloud-based functionality, results of operations would be adversely affected.
Customers are not obligated to renew, and renewal rates can decline due to pricing, competitive offerings, customer satisfaction, or reduced spending. NR3 was within the range of 100% and 110% as of both January 31, 2023 and 2022, but unpredictability in renewals could impact future revenue and operating results.
Autodesk is increasingly building AI into many offerings, and social and ethical issues plus potential government regulation of AI ethics may cause reputational harm, competitive harm, legal liability, and additional research and development costs, and could slow adoption.
Autodesk regularly acquires businesses and completed several transactions in fiscal 2022 and the first fiscal quarter of fiscal 2023. Integration challenges, inherited liabilities, failure to realize revenue and cost projections, and acquisition-related costs could cause quarterly financial fluctuations.
MD&A reports foreign exchange rate changes had a negative impact on fiscal 2023 net revenue, with net revenue up 14% as reported versus 15% constant currency. Autodesk hedges only a portion of exposure, so currency volatility could adversely affect future revenue and expenses.
Tax authorities are increasingly reviewing corporate tax regimes, and the Inflation Reduction Act enacted on August 16, 2022 includes an adjusted book minimum tax and excise tax on stock buybacks. Changes or challenges to tax positions could increase Autodesk's effective tax rate and cash taxes.
As of January 31, 2023, Autodesk had $2.30 billion of principal debt with notes due from June 2025 to December 2031, plus a $1.5 billion unsecured revolving facility. Debt service, covenant compliance, and possible credit rating downgrades could reduce financial flexibility and increase borrowing costs.
MD&A states the expected transition to annual billings for multi-year contracts will impact the timing of billings and cash collections. The risk factors also list the shift to named-user plans and annual billing of multi-year contracts among factors that could cause financial results and key metrics to fluctuate.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Remaining Performance Obligations (RPO)
Free Cash Flow
Billings
Deferred Revenue
Current Remaining Performance Obligations (cRPO)
Unbilled Deferred Revenue
Net Revenue Retention Rate (NR3)
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q4 FY2023 (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.