Slide 1: Third quarter fiscal 2025 earnings
Third quarter fiscal 2025 earnings November 26, 2024 © 2024 Autodesk. All rights reserved.
Slide 2: Safe harbor
Safe harbor This presentation contains forward looking statements about revenue, billings, free cash flow, operating margin, EPS, products, future performance, financial and otherwise, and strategy, including statements regarding our progress on our key priorities, business models, guidance for the
Slide 3: Third quarter fiscal 2025
Third quarter fiscal 2025 $1.54B $1.57B $199M 36% Billings Total revenue Free cash flow Non-GAAP operating margin See appendix for glossary of terms and see Excel financials for additional information: investors.autodesk.com/financials/quarterly-results 3
Slide 4: Q3 FY25 revenue mix by product family & geography
Q3 FY25 revenue mix by product family & geography MFG APAC $307M $285M Up 14% Y/Y Up 10% Y/Y M&E and $114M Other $705M Up 16% Y/Y Americas $751M Up 10% Y/Y Up 11% Y/Y AEC $398M $580M Up 7% Y/Y Up 12% Y/Y EMEA AutoCAD and AutoCAD LT Totals may not sum due to rounding. 4
Slide 5: Demonstrated progress on executing strategic plan
Demonstrated progress on executing strategic plan STRATEGIC INITIATIVES FINANCIAL HIGHLIGHTS A leader in attractive markets with strong secular growth Revenue growth: Delivered double-digit annual revenue growth potential: Accelerating digital transformation in AEC, and the at scale, >95% recurr
Slide 6: FY25 underlying non-GAAP operating margin ~39%
FY25 underlying non-GAAP operating margin ~39% Stripping out the effects on margins from FX and the new transaction model, we expect to be towards the mid- point of our fiscal 26 non-GAAP operating margin target of 38 to 40 percent in fiscal 25, a year ahead of schedule and representing about 300 bp
Slide 7: Outlook
Outlook 7
Slide 8: Outlook
Outlook Q4 FY25(1) FY25(1) (ending January 31, 2025) (ending January 31, 2025) Revenue (in millions) $1,623 - $1,638 Billings (in millions) $5,900 - $5,980 Up 14% - 15% EPS GAAP $1.21 - $1.27 Revenue (in millions)(3) $6,115 - $6,130 Up approx. 11% EPS non-GAAP(2) $2.10 - $2.16 GAAP operating margin
Slide 9: Non-GAAP FY25 model expectations
Non-GAAP FY25 model expectations INCOME STATEMENT BALANCE SHEET / CASH FLOW ▪ Other revenue to grow in a similar range as last two years ▪ Capital expenditures to be approximately $30 million ▪ Net revenue retention rate to be in the range of 100 to 110 percent ▪ Long-term deferred revenue as a perc
Slide 10: New transaction model
New transaction model 10
Slide 11: New transaction model
New transaction model Creates a direct relationship between Autodesk and its customers Requests a quote from solution provider. Helps customer with solution design and configures quote in the Autodesk system. Sends the quote to customer. Accepts quote and pays Autodesk 11
Slide 12: Benefits customers, partners and Autodesk
Benefits customers, partners and Autodesk A direct relationship enables us to understand and serve our customers better Data-Driven Interactions Customers will have more personalized and relevant experiences with support and services tailored to their needs. Predictability Customers receive consiste
Slide 13: New transaction model results in accounting change
New transaction model results in accounting change Higher net revenue, lower operating margin percent, and neutral to free cash flow Illustrative example of new transaction model accounting changes New Current buying ▪ In the new transaction model, reseller transaction compensation, previously recog
Slide 14: Modeling the new transaction model
Modeling the new transaction model Geographic and business mix, implementation timetable, and ratable model ▪ In FY24, about $600M of developed market reseller compensation was in contra revenue. Over time, this will be recognized in marketing and sales expense ▪ The implementation timetable, along
Slide 15: Appendix
Appendix 15
Slide 16: Reconciliation of GAAP financial measures to non-GAAP financial measures
Reconciliation of GAAP financial measures to non-GAAP financial measures (in millions, except per share data) To supplement our condensed consolidated financial statements presented on a GAAP basis, we provide investors with certain non-GAAP measures including non-GAAP operating margin, non-GAAP dil
Slide 17: Net cash provided by operating activities to free cash flow reconciliation
Appendix - net cash provided by operating activities to free cash flow reconciliation Three Months Ended October 31, Nine Months Ended October 31, 2024 2023 2024 2023 (Unaudited) Net cash provided by operating activities $ 209 $ 18 $ 915 $ 876 Capital expenditures (10) (5) (26) (21) Free cash flow $
Slide 18: GAAP to non-GAAP operating margin reconciliation
Appendix - GAAP to non-GAAP operating margin reconciliation Three Months Ended October 31, Nine Months Ended October 31, 2024 2023 2024 2023 (Unaudited) GAAP operating margin 22 % 24 % 22 % 20 % Stock-based compensation expense 12 % 13 % 11 % 13 % Amortization of developed technologies 1% 1% 1% 1% A
Slide 19: GAAP to non-GAAP diluted EPS reconciliation Q4 FY25 outlook
Appendix - GAAP to non-GAAP diluted EPS reconciliation Q4FY25 Outlook GAAP EPS $1.21 - $1.27 Stock-based compensation expense $0.85 Amortization of purchased intangibles and developed technologies $0.17 Acquisition-related costs $0.05 Income tax effect of non-GAAP adjustments $(0.18) Non-GAAP EPS $2
Slide 20: GAAP to non-GAAP diluted EPS reconciliation FY25 outlook
Appendix - GAAP to non-GAAP diluted EPS reconciliation FY25 Outlook GAAP EPS $4.95 - $5.01 Stock-based compensation expense $3.15 Amortization of purchased intangibles and developed technologies $0.61 Acquisition-related costs $0.23 Loss on strategic investments and dispositions, net $0.04 Income ta
Slide 21: Glossary of terms
Glossary of terms In order to help better understand our financial performance we use several key performance metrics including billings, recurring revenue, and net revenue retention rate. These metrics are key performance metrics and should be viewed independently of revenue and deferred revenue as
Slide 22: Glossary of terms
Glossary of terms Enterprise Business Agreements (EBAs): Represents programs providing enterprise customers with token-based access to a broad pool of Autodesk products over a defined contract term. Flex: A pay-as-you-go consumption option to pre-purchase tokens to access any product available with
Slide 23: Glossary of terms
Glossary of terms Net Revenue Retention Rate (NR3): Measures the year-over-year change in Recurring Revenue for the population of customers that existed one year ago (“base customers”). Net revenue retention rate is calculated by dividing the current quarter Recurring Revenue related to base custome
Slide 24: Glossary of terms
Glossary of terms Remaining Performance Obligations (RPO): The sum of total short-term, long-term, and unbilled deferred revenue. Current remaining performance obligations is the amount of revenue we expect to recognize in the next twelve months. Solution Provider: Solution Provider is the name of o
Slide 25: Autodesk trademarks notice
Autodesk and the Autodesk logo are registered trademarks or trademarks of Autodesk, Inc., and/or its subsidiaries and/or affiliates in the USA and/or other countries. All other brand names, product names, or trademarks belong to their respective holders. Autodesk reserves the right to alter product