SAN RAFAEL, Calif., May 24, 2018 — (PRNewswire) —   Autodesk, Inc. (NASDAQ: ADSK) today reported financial results for the first quarter of fiscal 2019.

First Quarter Fiscal 2019

Note: Starting the first quarter of fiscal 2019, Autodesk reports its results under two new accounting standards.  Revenue is now reported under Accounting Standard Codification ("ASC") 606 and sales commissions are now reported under ASC 340-40. We did not recast historical information as we elected to use the modified retrospective transition method. These new standards did not result in a change in timing or amount of revenue recognized for the majority of our maintenance and subscription offerings.  However, we are required to capitalize and amortize sales commissions under the new standards. ASC 606 and ASC 340-40 do not affect cash flows or subscriptions.

• Subscription plan ARR was $1.40 billion, an increase of 103 percent compared to the first quarter last year as reported, and 101 percent on a constant currency basis. Under the prior revenue accounting standard, ASC 605, subscription plan ARR was $1.43 billion, an increase of 106 percent compared to the first quarter last year.
• Total ARR was $2.13 billion, an increase of 22 percent compared to the first quarter last year as reported, and on a constant currency basis. Under ASC 605, total ARR was $2.17 billion, an increase of 25 percent compared to the first quarter last year.
• Subscription plan subscriptions increased 307,000 from the fourth quarter of fiscal 2018 to 2.57 million at the end of the first quarter of fiscal 2019. Subscription plan subscriptions benefited from 154,000 maintenance subscribers that converted to product subscription under the maintenance-to-subscription (M2S) program.
• Total subscriptions increased 101,000 from the fourth quarter of fiscal 2018 to 3.82 million at the end of the first quarter of fiscal 2019.
• Deferred revenue was $1.81 billion, flat compared to the first quarter last year. Unbilled deferred revenue at the end of the first quarter was $412 million. Total deferred revenue (deferred revenue plus unbilled deferred revenue) was $2.22 billion, an increase of approximately 21 percent compared to the first quarter last year. Under ASC 605, total deferred revenue was $2.28 billion, an increase of approximately 24 percent compared to the first quarter last year.
• Revenue was $560 million, an increase of 15 percent compared to the first quarter last year as reported, and on a constant currency basis. Under ASC 605, total revenue was $574 million, an increase of 18 percent compared to the first quarter last year.
• Billings were $411 million, a decrease of 18 percent compared to the first quarter last year driven primarily by the initial impact of the adoption of ASC 606. Under ASC 605, billings were $561 million, an increase of 12 percent compared to the first quarter last year.
• Total GAAP spend (cost of revenue plus operating expenses) was $615 million, an increase of 2 percent compared to the first quarter last year. Absent ASC 340-40, total GAAP spend was $602 million, a decrease of 1 percent compared to the first quarter last year.
• Total non-GAAP spend was $531 million, an increase of 1 percent compared to the first quarter last year. A reconciliation of GAAP to non-GAAP results is provided in the accompanying tables. Absent ASC 340-40, total non-GAAP spend was $518 million, a decrease of 1 percent compared to the first quarter last year.
• GAAP diluted net loss per share was $(0.38), compared to GAAP diluted net loss per share of $(0.59) in the first quarter last year. Under ASC 605 and absent ASC 340-40, total GAAP diluted net loss per share was $(0.27).
• Non-GAAP diluted earnings per share was $0.06, compared to non-GAAP diluted net loss per share of $(0.16) in the first quarter last year. Under ASC 605 and absent ASC 340-40, total non-GAAP diluted net income per share was $0.16.

For definitions, please view the Glossary of Terms later in this document.

"Our first quarter results are a good start to the new fiscal year and demonstrate Autodesk is firmly in the growth phase of our business model transition," said Andrew Anagnost, Autodesk president and CEO.  "Once again, our focus on driving growth in ARR has yielded strong results, which we believe will accelerate as we move through the year.  Our focus and investment on our customers' experience continued to drive customers to migrate from maintenance to subscription during the quarter.  We've now seen approximately half a million maintenance subscriptions convert to product subscriptions in less than a year and we expect that number to grow significantly in the coming quarters."

"Our growth in ARR was only part of the story during the first quarter, as we also delivered strong growth in billings, total deferred revenue, and ARPS," said Scott Herren, Autodesk CFO.  "This quarter also marked another milestone in our business model transition with our return to non-GAAP profitability.  Overall, we remain confident in achieving the targets we set for this year and the long-term targets laid out at our recent investor day."

First Quarter Operational Overview

Subscription plan ARR was $1.40 billion, an increase of 103 percent compared to the first quarter last year as reported, and 101 percent on a constant currency basis.  Subscription plan ARR includes $273 million related to the maintenance-to-subscription program.  Maintenance plan ARR was $725 million, a decrease of 31 percent compared to the first quarter last year as reported, and on a constant currency basis.  Total ARR was $2.13 billion, an increase of 22 percent compared to the first quarter last year as reported, and on a constant currency basis.

Subscription plan subscriptions (product, EBA, and cloud) were 2.57 million, a net increase of 307,000 from the fourth quarter of fiscal 2018, led by new product subscriptions and 154,000 product subscriptions that migrated from maintenance plan subscriptions.  Maintenance plan subscriptions were 1.24 million, a net decrease of 206,000 from the fourth quarter of fiscal 2018, which includes the 154,000 that migrated to product subscription.  Total subscriptions were 3.82 million, a net increase of 101,000 from the fourth quarter of fiscal 2018.   

Total recurring revenue in the first quarter was 95 percent of total revenue compared to 90 percent of total revenue in the first quarter last year.

Revenue in the Americas was $234 million, an increase of 11 percent compared to the first quarter last year. Revenue in EMEA was $221 million, an increase of 16 percent compared to the first quarter last year as reported, and on a constant currency basis. Revenue in APAC was $106 million, an increase of 23 percent compared to the first quarter last year as reported, and 22 percent on a constant currency basis.

Under ASC 605

• Subscription plan ARR was $1.43 billion, an increase of 106 percent compared to the first quarter last year.
• Maintenance plan ARR was $746 million, a decrease of 29 percent compared to the first quarter last year.
• Total ARR was $2.17 billion, an increase of 25 percent compared to the first quarter last year.
• Billings were $561 million, an increase of 12 percent compared to the first quarter last year.
• Total revenue was $574 million, an increase of 18 percent compared to the first quarter last year as reported, and on a constant currency basis.
• Revenue in the Americas was $238 million , an increase of 13 percent compared to the first quarter last year.
• Revenue in EMEA was $229 million , an increase of 21 percent compared to the first quarter last year, and 20 percent a constant currency basis.
• Revenue in APAC was $107 million , an increase of 25 percent compared to the first quarter last year, and 24 percent on a constant currency basis.