The following are forward-looking statements based on current expectations and assumptions, and involve risks and uncertainties some of which are set forth below under "Safe Harbor Statement." Autodesk's business outlook for the second quarter and full year fiscal 2019 assumes, among other things, a continuation of the current economic environment and foreign exchange currency rate environment. A reconciliation between the fiscal 2019 GAAP and non-GAAP estimates is provided below or in the tables following this press release.
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.
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Second Quarter Fiscal 2019 |
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Q2 FY19 Guidance Metrics |
Q2 FY19 under 606 (ending July 31,
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Revenue (in millions) |
$595 - $605 |
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EPS GAAP |
$(0.38) - $(0.35) |
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EPS non-GAAP (1) |
$0.13 - $0.16 |
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(1) |
Non-GAAP earnings per diluted share excludes $0.27 related to stock-based compensation expense, between $0.16 related to
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Full Year Fiscal 2019 |
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FY19 Guidance Metrics |
FY19 under 605 (ending
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FY19 under 606 (ending
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Billings (in millions) |
$2,720 - $2,820 |
$2,560 - $2,660 (2) |
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Revenue (in millions) |
$2,495 - $2,545 |
$2,455 - $2,505 (3) |
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GAAP spend growth (cost of revenue plus operating expenses) |
(2.5)% - (1.5)% |
(2.5)% - (1.5)% |
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Non-GAAP spend growth (cost of revenue plus operating expenses) (4) |
1 - 2% |
1 - 2% |
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EPS GAAP |
$(0.58) - $(0.40) |
$(0.73) - $(0.55) |
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EPS non-GAAP (5) |
$0.92 - $1.10 |
$0.77 - $0.95 |
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Net subscription additions |
500k - 550k |
500k - 550k |
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Total ARR growth |
29% - 31% |
28% - 30% |
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(1) |
The move to the new revenue standard results in a net reduction to revenue and EPS of approximately $40 million and $0.15 respectively, compared to what would have been recognized under ASC 605, and a reduction of approximately $20M in ARR. |
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(2) |
Billings guidance reflects the initial impact of the adoption of ASC 606. This adjustment does not impact cash flow. |
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(3) |
Excluding the impact of foreign currency exchange rates and hedge gains/losses, revenue guidance would be $2,420 - $2,470 million. |
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(4) |
Non-GAAP spend excludes $235 million related to stock-based compensation expense, $33 million related to restructuring and other facility exit costs, and $28 million for the amortization of acquisition-related intangibles. |
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(5) |
Non-GAAP earnings per diluted share excludes $1.08 related to stock-based compensation expense, $0.15 related to GAAP-only tax charges, $0.15 related to restructuring and other facility exit costs, $0.13 for the amortization of acquisition-related intangibles, and ($0.01) related to gains on strategic investments and dispositions. |
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The second quarter and full year fiscal 2019 outlook assume a projected annual effective tax rate of (68) percent and 19 percent for GAAP and non-GAAP results, respectively. Assumptions for the annual effective tax rate are regularly evaluated and may change based on the projected geographic mix of earnings. At this stage of the business model transition, small shifts in geographic profitability significantly impact the annual effective tax rate.
