SAN RAFAEL, Calif., August 24, 2017 /PRNewswire/ — Autodesk, Inc. (NASDAQ: ADSK) today announced its financial results for the second quarter of fiscal 2018.
**Second Quarter Fiscal 2018 Highlights**
- **Subscription Plan ARR**: Reached $784 million, marking a 94% increase compared to the same period last year on a reported basis and 98% on a constant currency basis.
- **Total ARR**: Grew to $1.83 billion, reflecting a 21% increase year-over-year as reported and 23% on a constant currency basis. Subscription plan ARR contributed $8 million from the maintenance-to-subscription program.
- **Subscription Plan Subscriptions**: Increased by 270,000 from Q1 FY18 to reach 1.59 million by the end of Q2. Of these, 63,000 came from maintenance subscribers converting to product subscriptions under the maintenance-to-subscription program.
- **Total Subscriptions**: Grew by 153,000 to reach 3.44 million by the end of Q2.
- **Deferred Revenue**: Climbed 17% to $1.78 billion compared to $1.52 billion in the same period last year. Unbilled deferred revenue stood at $63 million at the end of Q2.
- **Revenue**: Declined 9% to $502 million compared to the second quarter last year as reported and 8% on a constant currency basis. This decline is due to the company's ongoing business model transition, where more revenue is recognized over time instead of upfront, and new offerings typically have lower initial prices.
- **Total GAAP Spend**: Decreased 1% to $609 million compared to the second quarter last year.
- **Total Non-GAAP Spend**: Increased 1% to $531 million compared to the second quarter last year.
- **GAAP Diluted Net Loss Per Share**: Was $(0.66) compared to $(0.44) in the second quarter last year.
- **Non-GAAP Diluted Net Loss Per Share**: Was $(0.11) compared to non-GAAP diluted net income per share of $0.05 in the second quarter last year.
“Once again, we observed robust growth across all subscription plan types and geographies,†said Andrew Anagnost, Autodesk president and CEO. “We're seeing encouraging trends in ARR growth, particularly with products that were the first to transition to subscription-only models. These products are further along in the transition and have ARR growth rates significantly higher than our current average, proving that our model shift is successful. Subscription is providing a superior experience for our customers, expanding our market opportunities in construction and manufacturing, and enhancing the lifetime value of Autodesk subscriptions.â€
“During the second quarter, we introduced a straightforward pathway for maintenance customers to switch to subscription,†continued Anagnost. “Although the program began halfway through the quarter, it has already achieved impressive results with nearly one-quarter of renewal opportunities transitioning to subscription.â€
“Strong operational execution and a stable macroeconomic environment resulted in another quarter of better-than-expected outcomes,†said Scott Herren, Autodesk CFO. “We’ve achieved these results while maintaining strict cost control. Our first-half performance strengthens our belief that the transition is beneficial for both our customers and partners. It also positions us well for the remainder of the year and reinforces our confidence in reaching our FY 20 targets.â€
**Operational Overview**
Subscription plan ARR reached $784 million, growing 94% compared to the second quarter last year as reported and 98% on a constant currency basis. This figure includes $8 million related to the maintenance-to-subscription program. Maintenance plan ARR was $1.05 billion, declining 5% compared to the second quarter last year as reported and on a constant currency basis. Total ARR for the second quarter grew 21% to $1.83 billion compared to the second quarter last year as reported and 23% on a constant currency basis. Similar to the previous three quarters, second-quarter total ARR growth was affected by the allocation of existing marketing development funds (MDF). MDF is recorded as contra revenue and has historically been allocated against license revenue. With the discontinuation of perpetual license sales, MDF is now allocated against recurring revenue, negatively impacting subscription plan ARR growth by 5 percentage points, maintenance plan ARR growth by 2 percentage points, and total ARR growth by 3 percentage points.
Subscription plan subscriptions (products, EBA, and cloud) reached 1.59 million, increasing by 270,000 from the first quarter of fiscal 2018, driven primarily by new product subscriptions and 63,000 product subscriptions migrating from maintenance plan subscriptions. Maintenance plan subscriptions were 1.85 million, decreasing by 117,000 from the first quarter of fiscal 2018, which includes the 63,000 that migrated to product subscription. Total subscriptions reached 3.44 million, increasing by 153,000 from the first quarter of fiscal 2018.
Total recurring revenue in the second quarter accounted for 91% of total revenue compared to 69% in the second quarter last year.
As a reminder, during the business model transition, revenue is negatively impacted as more revenue is recognized ratably rather than upfront and as new product offerings generally have a lower initial purchase price. As part of this transition, Autodesk stopped selling new perpetual licenses for most individual products at the end of the fourth quarter of fiscal 2016 and for suites at the end of the second quarter of fiscal 2017.
Revenue in the Americas was $214 million, down 7% compared to the second quarter last year as reported and on a constant currency basis. Revenue in EMEA was $199 million, down 10% compared to the second quarter last year as reported and 7% on a constant currency basis. Revenue in APAC was $89 million, down 12% compared to the second quarter last year as reported and on a constant currency basis.
**Business Outlook**
The following are forward-looking statements based on current expectations and assumptions, involving risks and uncertainties detailed below under "Safe Harbor Statement." Autodesk's business outlook for the third quarter and full year fiscal 2018 assumes a continuation of the current economic environment and foreign exchange currency rate environment. A reconciliation between the fiscal 2018 GAAP and non-GAAP estimates is provided below or in the tables following this press release.
| Third Quarter Fiscal 2018 |
|---------------------------|
| Q3 FY18 Guidance Metrics |
| Revenue (in millions) | $505 – $515 |
| EPS GAAP | ($0.64) – ($0.58) |
| EPS non-GAAP (1) | ($0.16) – ($0.12) |
(1) Non-GAAP earnings per diluted share excludes $0.29 related to stock-based compensation expense, between $0.15 and $0.13 related to GAAP-only tax charges, and $0.04 for the amortization of acquisition-related intangibles.
| Full Year Fiscal 2018 |
|--------------------------|
| FY18 Guidance Metrics |
| Revenue (in millions) (1) | $2,030 – $2,050 |
| GAAP Spend Growth | Approx. (2%) |
| Non-GAAP Spend Growth (2) | Approx. flat |
| EPS GAAP | ($2.55) – ($2.44) |
| EPS non-GAAP (3) | ($0.61) – ($0.54) |
| Net Subscription Additions| 625,000 – 675,000 |
| Total ARR | 24% -26% |
(1) Excluding the impact of foreign currency exchange rates and hedge gains/losses, revenue guidance would be $2.035 – 2.055 billion.
(2) Non-GAAP spend excludes $243 million related to stock-based compensation expense, $36 million for the amortization of acquisition-related intangibles, and $22 million related to CEO transition costs.
(3) Non-GAAP earnings per diluted share excludes $1.11 related to stock-based compensation expense, between $0.52 and $0.48 related to GAAP-only tax charges, $0.17 for the amortization of acquisition-related intangibles, $0.10 related to CEO transition costs, and $0.04 related to losses on strategic investments and dispositions.
The third quarter and full year fiscal 2018 outlook assume a projected annual effective tax rate of (14)% and 26% 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.
**Earnings Conference Call and Webcast**
Autodesk will host its second quarter conference call today at 5:00 p.m. ET. The live broadcast can be accessed at [http://www.autodesk.com/investor](http://www.autodesk.com/investor). Supplemental financial information and prepared remarks for the conference call will be posted to the investor relations section of Autodesk’s website simultaneously with this press release.
A replay of the broadcast will be available at 7:00 p.m. ET at [http://www.autodesk.com/investor](http://www.autodesk.com/investor). This replay will be maintained on Autodesk’s website for at least 12 months.
**Glossary of Terms**
**Annualized Recurring Revenue (ARR):** Represents the annualized value of our average monthly recurring revenue for the preceding three months. "Maintenance plan ARR" captures ARR relating to traditional maintenance attached to perpetual licenses. "Subscription plan ARR" captures ARR relating to term-based product subscriptions, cloud service offerings, and flexible enterprise business arrangements. Refer to the definition of recurring revenue below for more details on what is included within ARR. Recurring revenue acquired with the acquisition of a business may cause variability in the comparison of this calculation.
ARR is currently one of our key performance metrics to assess the health and trajectory of our business. ARR should be viewed independently of revenue and deferred revenue as ARR is a performance metric and is not intended to be combined with any of these items.
**Constant Currency (CC) Growth Rates:** We calculate constant currency growth rates by (i) applying the applicable prior period exchange rates to current period results and (ii) excluding any gains or losses from foreign currency hedge contracts that are reported in the current and comparative periods.
**Enterprise Business Agreements (EBAs):** These represent programs providing enterprise customers with token-based access or a fixed maximum number of seats to a broad pool of Autodesk products over a defined contract term.
**License and Other Revenue:** Represents (1) perpetual license revenue and (2) other revenue. Perpetual license revenue includes software license revenue from the sale of perpetual licenses, and Creative Finishing. Other revenue includes revenue such as standalone consulting and training, and is recognized over time as the services are performed.
**Maintenance Plan:** Our maintenance plans provide our customers with a cost-effective and predictable budgetary option to obtain the productivity benefits of our new releases and enhancements when and if released during the term of their contracts. Under our maintenance plans, customers are eligible to receive unspecified upgrades when and if available, and technical support. We recognize maintenance revenue over the term of the agreements, generally between one and three years.
**Recurring Revenue:** Consists of the revenue for the period from our traditional maintenance plans and revenue from our subscription plan offerings. It excludes subscription revenue related to consumer product offerings, select Creative Finishing product offerings, education offerings, and third-party products. Recurring revenue acquired with the acquisition of a business is captured when total subscriptions are captured in our systems and may cause variability in the comparison of this calculation.
**Subscription Plan:** Comprises our term-based product subscriptions, cloud service offerings, and enterprise business agreements (EBAs). Subscriptions represent a hybrid of desktop and SaaS functionality which provides a device-independent, collaborative design workflow for designers and their stakeholders. With subscription, customers can use our software anytime, anywhere, and get access to the latest updates to previous versions.
**Subscription Revenue:** Includes subscription fees from term-based product subscriptions, flexible enterprise business arrangements and all other services as part of a bundled subscription agreement accounted for as a single unit of accounting. (i.e., cloud services, maintenance, and consulting).
**Total Subscriptions:** Consists of subscriptions from our maintenance plans and subscription plan offerings that are active and paid as of the quarter end date. For certain cloud service offerings and flexible enterprise business arrangements, subscriptions represent the monthly average activity reported within the last three months of the quarter end date. Total subscriptions do not include education offerings, consumer product offerings, select Creative Finishing product offerings, Autodesk Buzzsaw, Autodesk Constructware, and third-party products. Subscriptions acquired with the acquisition of a business are captured once the data conforms to our subscription count methodology and when added, may cause variability in the comparison of this calculation.
**Unbilled Deferred Revenue:** Unbilled deferred revenue represents contractually stated or committed orders under multi-year billing plans for subscription, services, license and maintenance for which the associated revenue has not been recognized and the customer has not been invoiced. Unbilled deferred revenue is not included on our Consolidated Balance Sheet until invoiced to the customer.
**Safe Harbor Statement**
This press release contains forward-looking statements that involve risks and uncertainties, including statements in the paragraphs under “Business Outlook†above, other statements about our short-term and long-term targets, statements regarding the impacts and results of our business model transition, expectations regarding the transition of product offerings to subscription and acceptance by our customers and partners of subscriptions, expectations for subscriptions and ARR, statements about the expansion of our market opportunity, and other statements regarding our strategies, market and product positions, performance, and results. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: failure to achieve our revenue and profitability objectives; failure to successfully manage transitions to new business models and markets, including the introduction of additional ratable revenue streams and our continuing efforts to attract customers to our cloud-based offerings and expenses related to the transition of our business model; difficulty in predicting revenue from new businesses and the potential impact on our financial results from changes in our business models; general market, political, economic, and business conditions; any imposition of new tariffs or trade barriers; the impact of non-cash charges on our financial results; fluctuation in foreign currency exchange rates; the success of our foreign currency hedging program; failure to control our expenses; our performance in particular geographies, including emerging economies; the ability of governments around the world to meet their financial and debt obligations, and finance infrastructure projects; weak or negative growth in the industries we serve; slowing momentum in subscription billings or revenues; difficulties encountered in integrating new or acquired businesses and technologies; the inability to identify and realize the anticipated benefits of acquisitions; the financial and business condition of our reseller and distribution channels; dependence on and the timing of large transactions; failure to achieve sufficient sell-through in our channels for new or existing products; pricing pressure; unexpected fluctuations in our annual effective tax rate; the timing and degree of expected investments in growth and efficiency opportunities; changes in the timing of product releases and retirements; and any unanticipated accounting charges.
Further information on potential factors that could affect the financial results of Autodesk are included in Autodesk’s Annual Report on Form 10-K for the fiscal year ended January 31, 2017 and Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2017, which are on file with the U.S. Securities and Exchange Commission. Autodesk disclaims any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
**About Autodesk**
Autodesk makes software for people who make things. If you’ve ever driven a high-performance car, admired a towering skyscraper, used a smartphone, or watched a great film, chances are you’ve experienced what millions of Autodesk customers are doing with our software. Autodesk gives you the power to make anything. For more information visit [autodesk.com](autodesk.com) or follow @autodesk.
**Trademark Information**
Autodesk, AutoCAD, AutoCAD LT, BIM 360 and Fusion 360 are registered 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 and service offerings, and specifications and pricing at any time without notice, and is not responsible for typographical or graphical errors that may appear in this document.
© 2017 Autodesk, Inc. All rights reserved.
**Autodesk, Inc.**
**Condensed Consolidated Statements of Operations (1)**
(In millions, except per share data)
| Three Months Ended July 31, | 2017 | 2016 |
|-----------------------------|------|------|
| Net revenue: | | |
| Maintenance | $261.8 | $277.5 |
| Subscription | $196.1 | $101.8 |
| Total maintenance and subscription revenue | $457.9 | $379.3 |
| License and other | $43.9 | $171.4 |
| Total net revenue | $501.8 | $550.7 |
*Note: The condensed consolidated statements of operations have been updated in the first quarter of fiscal 2018 to improve revenue transparency. All subscription revenue is now reported in the subscription line, and all maintenance revenue is reported in the maintenance line. Remaining non-recurring revenue is reported as license and other revenue.*
This update aligns the cost of revenue presentation with revenue changes, simplifies the reconciliation between the income statement and recurring revenue, and strengthens the link between financial statements and the business model transition.
**Second Quarter Fiscal 2018 Highlights**
- **Subscription Plan ARR**: Reached $784 million, marking a 94% increase compared to the same period last year on a reported basis and 98% on a constant currency basis.
- **Total ARR**: Grew to $1.83 billion, reflecting a 21% increase year-over-year as reported and 23% on a constant currency basis. Subscription plan ARR contributed $8 million from the maintenance-to-subscription program.
- **Subscription Plan Subscriptions**: Increased by 270,000 from Q1 FY18 to reach 1.59 million by the end of Q2. Of these, 63,000 came from maintenance subscribers converting to product subscriptions under the maintenance-to-subscription program.
- **Total Subscriptions**: Grew by 153,000 to reach 3.44 million by the end of Q2.
- **Deferred Revenue**: Climbed 17% to $1.78 billion compared to $1.52 billion in the same period last year. Unbilled deferred revenue stood at $63 million at the end of Q2.
- **Revenue**: Declined 9% to $502 million compared to the second quarter last year as reported and 8% on a constant currency basis. This decline is due to the company's ongoing business model transition, where more revenue is recognized over time instead of upfront, and new offerings typically have lower initial prices.
- **Total GAAP Spend**: Decreased 1% to $609 million compared to the second quarter last year.
- **Total Non-GAAP Spend**: Increased 1% to $531 million compared to the second quarter last year.
- **GAAP Diluted Net Loss Per Share**: Was $(0.66) compared to $(0.44) in the second quarter last year.
- **Non-GAAP Diluted Net Loss Per Share**: Was $(0.11) compared to non-GAAP diluted net income per share of $0.05 in the second quarter last year.
“Once again, we observed robust growth across all subscription plan types and geographies,†said Andrew Anagnost, Autodesk president and CEO. “We're seeing encouraging trends in ARR growth, particularly with products that were the first to transition to subscription-only models. These products are further along in the transition and have ARR growth rates significantly higher than our current average, proving that our model shift is successful. Subscription is providing a superior experience for our customers, expanding our market opportunities in construction and manufacturing, and enhancing the lifetime value of Autodesk subscriptions.â€
“During the second quarter, we introduced a straightforward pathway for maintenance customers to switch to subscription,†continued Anagnost. “Although the program began halfway through the quarter, it has already achieved impressive results with nearly one-quarter of renewal opportunities transitioning to subscription.â€
“Strong operational execution and a stable macroeconomic environment resulted in another quarter of better-than-expected outcomes,†said Scott Herren, Autodesk CFO. “We’ve achieved these results while maintaining strict cost control. Our first-half performance strengthens our belief that the transition is beneficial for both our customers and partners. It also positions us well for the remainder of the year and reinforces our confidence in reaching our FY 20 targets.â€
**Operational Overview**
Subscription plan ARR reached $784 million, growing 94% compared to the second quarter last year as reported and 98% on a constant currency basis. This figure includes $8 million related to the maintenance-to-subscription program. Maintenance plan ARR was $1.05 billion, declining 5% compared to the second quarter last year as reported and on a constant currency basis. Total ARR for the second quarter grew 21% to $1.83 billion compared to the second quarter last year as reported and 23% on a constant currency basis. Similar to the previous three quarters, second-quarter total ARR growth was affected by the allocation of existing marketing development funds (MDF). MDF is recorded as contra revenue and has historically been allocated against license revenue. With the discontinuation of perpetual license sales, MDF is now allocated against recurring revenue, negatively impacting subscription plan ARR growth by 5 percentage points, maintenance plan ARR growth by 2 percentage points, and total ARR growth by 3 percentage points.
Subscription plan subscriptions (products, EBA, and cloud) reached 1.59 million, increasing by 270,000 from the first quarter of fiscal 2018, driven primarily by new product subscriptions and 63,000 product subscriptions migrating from maintenance plan subscriptions. Maintenance plan subscriptions were 1.85 million, decreasing by 117,000 from the first quarter of fiscal 2018, which includes the 63,000 that migrated to product subscription. Total subscriptions reached 3.44 million, increasing by 153,000 from the first quarter of fiscal 2018.
Total recurring revenue in the second quarter accounted for 91% of total revenue compared to 69% in the second quarter last year.
As a reminder, during the business model transition, revenue is negatively impacted as more revenue is recognized ratably rather than upfront and as new product offerings generally have a lower initial purchase price. As part of this transition, Autodesk stopped selling new perpetual licenses for most individual products at the end of the fourth quarter of fiscal 2016 and for suites at the end of the second quarter of fiscal 2017.
Revenue in the Americas was $214 million, down 7% compared to the second quarter last year as reported and on a constant currency basis. Revenue in EMEA was $199 million, down 10% compared to the second quarter last year as reported and 7% on a constant currency basis. Revenue in APAC was $89 million, down 12% compared to the second quarter last year as reported and on a constant currency basis.
**Business Outlook**
The following are forward-looking statements based on current expectations and assumptions, involving risks and uncertainties detailed below under "Safe Harbor Statement." Autodesk's business outlook for the third quarter and full year fiscal 2018 assumes a continuation of the current economic environment and foreign exchange currency rate environment. A reconciliation between the fiscal 2018 GAAP and non-GAAP estimates is provided below or in the tables following this press release.
| Third Quarter Fiscal 2018 |
|---------------------------|
| Q3 FY18 Guidance Metrics |
| Revenue (in millions) | $505 – $515 |
| EPS GAAP | ($0.64) – ($0.58) |
| EPS non-GAAP (1) | ($0.16) – ($0.12) |
(1) Non-GAAP earnings per diluted share excludes $0.29 related to stock-based compensation expense, between $0.15 and $0.13 related to GAAP-only tax charges, and $0.04 for the amortization of acquisition-related intangibles.
| Full Year Fiscal 2018 |
|--------------------------|
| FY18 Guidance Metrics |
| Revenue (in millions) (1) | $2,030 – $2,050 |
| GAAP Spend Growth | Approx. (2%) |
| Non-GAAP Spend Growth (2) | Approx. flat |
| EPS GAAP | ($2.55) – ($2.44) |
| EPS non-GAAP (3) | ($0.61) – ($0.54) |
| Net Subscription Additions| 625,000 – 675,000 |
| Total ARR | 24% -26% |
(1) Excluding the impact of foreign currency exchange rates and hedge gains/losses, revenue guidance would be $2.035 – 2.055 billion.
(2) Non-GAAP spend excludes $243 million related to stock-based compensation expense, $36 million for the amortization of acquisition-related intangibles, and $22 million related to CEO transition costs.
(3) Non-GAAP earnings per diluted share excludes $1.11 related to stock-based compensation expense, between $0.52 and $0.48 related to GAAP-only tax charges, $0.17 for the amortization of acquisition-related intangibles, $0.10 related to CEO transition costs, and $0.04 related to losses on strategic investments and dispositions.
The third quarter and full year fiscal 2018 outlook assume a projected annual effective tax rate of (14)% and 26% 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.
**Earnings Conference Call and Webcast**
Autodesk will host its second quarter conference call today at 5:00 p.m. ET. The live broadcast can be accessed at [http://www.autodesk.com/investor](http://www.autodesk.com/investor). Supplemental financial information and prepared remarks for the conference call will be posted to the investor relations section of Autodesk’s website simultaneously with this press release.
A replay of the broadcast will be available at 7:00 p.m. ET at [http://www.autodesk.com/investor](http://www.autodesk.com/investor). This replay will be maintained on Autodesk’s website for at least 12 months.
**Glossary of Terms**
**Annualized Recurring Revenue (ARR):** Represents the annualized value of our average monthly recurring revenue for the preceding three months. "Maintenance plan ARR" captures ARR relating to traditional maintenance attached to perpetual licenses. "Subscription plan ARR" captures ARR relating to term-based product subscriptions, cloud service offerings, and flexible enterprise business arrangements. Refer to the definition of recurring revenue below for more details on what is included within ARR. Recurring revenue acquired with the acquisition of a business may cause variability in the comparison of this calculation.
ARR is currently one of our key performance metrics to assess the health and trajectory of our business. ARR should be viewed independently of revenue and deferred revenue as ARR is a performance metric and is not intended to be combined with any of these items.
**Constant Currency (CC) Growth Rates:** We calculate constant currency growth rates by (i) applying the applicable prior period exchange rates to current period results and (ii) excluding any gains or losses from foreign currency hedge contracts that are reported in the current and comparative periods.
**Enterprise Business Agreements (EBAs):** These represent programs providing enterprise customers with token-based access or a fixed maximum number of seats to a broad pool of Autodesk products over a defined contract term.
**License and Other Revenue:** Represents (1) perpetual license revenue and (2) other revenue. Perpetual license revenue includes software license revenue from the sale of perpetual licenses, and Creative Finishing. Other revenue includes revenue such as standalone consulting and training, and is recognized over time as the services are performed.
**Maintenance Plan:** Our maintenance plans provide our customers with a cost-effective and predictable budgetary option to obtain the productivity benefits of our new releases and enhancements when and if released during the term of their contracts. Under our maintenance plans, customers are eligible to receive unspecified upgrades when and if available, and technical support. We recognize maintenance revenue over the term of the agreements, generally between one and three years.
**Recurring Revenue:** Consists of the revenue for the period from our traditional maintenance plans and revenue from our subscription plan offerings. It excludes subscription revenue related to consumer product offerings, select Creative Finishing product offerings, education offerings, and third-party products. Recurring revenue acquired with the acquisition of a business is captured when total subscriptions are captured in our systems and may cause variability in the comparison of this calculation.
**Subscription Plan:** Comprises our term-based product subscriptions, cloud service offerings, and enterprise business agreements (EBAs). Subscriptions represent a hybrid of desktop and SaaS functionality which provides a device-independent, collaborative design workflow for designers and their stakeholders. With subscription, customers can use our software anytime, anywhere, and get access to the latest updates to previous versions.
**Subscription Revenue:** Includes subscription fees from term-based product subscriptions, flexible enterprise business arrangements and all other services as part of a bundled subscription agreement accounted for as a single unit of accounting. (i.e., cloud services, maintenance, and consulting).
**Total Subscriptions:** Consists of subscriptions from our maintenance plans and subscription plan offerings that are active and paid as of the quarter end date. For certain cloud service offerings and flexible enterprise business arrangements, subscriptions represent the monthly average activity reported within the last three months of the quarter end date. Total subscriptions do not include education offerings, consumer product offerings, select Creative Finishing product offerings, Autodesk Buzzsaw, Autodesk Constructware, and third-party products. Subscriptions acquired with the acquisition of a business are captured once the data conforms to our subscription count methodology and when added, may cause variability in the comparison of this calculation.
**Unbilled Deferred Revenue:** Unbilled deferred revenue represents contractually stated or committed orders under multi-year billing plans for subscription, services, license and maintenance for which the associated revenue has not been recognized and the customer has not been invoiced. Unbilled deferred revenue is not included on our Consolidated Balance Sheet until invoiced to the customer.
**Safe Harbor Statement**
This press release contains forward-looking statements that involve risks and uncertainties, including statements in the paragraphs under “Business Outlook†above, other statements about our short-term and long-term targets, statements regarding the impacts and results of our business model transition, expectations regarding the transition of product offerings to subscription and acceptance by our customers and partners of subscriptions, expectations for subscriptions and ARR, statements about the expansion of our market opportunity, and other statements regarding our strategies, market and product positions, performance, and results. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: failure to achieve our revenue and profitability objectives; failure to successfully manage transitions to new business models and markets, including the introduction of additional ratable revenue streams and our continuing efforts to attract customers to our cloud-based offerings and expenses related to the transition of our business model; difficulty in predicting revenue from new businesses and the potential impact on our financial results from changes in our business models; general market, political, economic, and business conditions; any imposition of new tariffs or trade barriers; the impact of non-cash charges on our financial results; fluctuation in foreign currency exchange rates; the success of our foreign currency hedging program; failure to control our expenses; our performance in particular geographies, including emerging economies; the ability of governments around the world to meet their financial and debt obligations, and finance infrastructure projects; weak or negative growth in the industries we serve; slowing momentum in subscription billings or revenues; difficulties encountered in integrating new or acquired businesses and technologies; the inability to identify and realize the anticipated benefits of acquisitions; the financial and business condition of our reseller and distribution channels; dependence on and the timing of large transactions; failure to achieve sufficient sell-through in our channels for new or existing products; pricing pressure; unexpected fluctuations in our annual effective tax rate; the timing and degree of expected investments in growth and efficiency opportunities; changes in the timing of product releases and retirements; and any unanticipated accounting charges.
Further information on potential factors that could affect the financial results of Autodesk are included in Autodesk’s Annual Report on Form 10-K for the fiscal year ended January 31, 2017 and Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2017, which are on file with the U.S. Securities and Exchange Commission. Autodesk disclaims any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
**About Autodesk**
Autodesk makes software for people who make things. If you’ve ever driven a high-performance car, admired a towering skyscraper, used a smartphone, or watched a great film, chances are you’ve experienced what millions of Autodesk customers are doing with our software. Autodesk gives you the power to make anything. For more information visit [autodesk.com](autodesk.com) or follow @autodesk.
**Trademark Information**
Autodesk, AutoCAD, AutoCAD LT, BIM 360 and Fusion 360 are registered 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 and service offerings, and specifications and pricing at any time without notice, and is not responsible for typographical or graphical errors that may appear in this document.
© 2017 Autodesk, Inc. All rights reserved.
**Autodesk, Inc.**
**Condensed Consolidated Statements of Operations (1)**
(In millions, except per share data)
| Three Months Ended July 31, | 2017 | 2016 |
|-----------------------------|------|------|
| Net revenue: | | |
| Maintenance | $261.8 | $277.5 |
| Subscription | $196.1 | $101.8 |
| Total maintenance and subscription revenue | $457.9 | $379.3 |
| License and other | $43.9 | $171.4 |
| Total net revenue | $501.8 | $550.7 |
*Note: The condensed consolidated statements of operations have been updated in the first quarter of fiscal 2018 to improve revenue transparency. All subscription revenue is now reported in the subscription line, and all maintenance revenue is reported in the maintenance line. Remaining non-recurring revenue is reported as license and other revenue.*
This update aligns the cost of revenue presentation with revenue changes, simplifies the reconciliation between the income statement and recurring revenue, and strengthens the link between financial statements and the business model transition.Selective Laser Sintering - Sls
Stereo Light Curing Molding - Sla
It mainly uses photosensitive resin as a raw material, and utilizes the characteristic that liquid photosensitive resin will cure quickly under ultraviolet laser beam irradiation. The photosensitive resin is generally liquid, and it immediately initiates a polymerization reaction and completes curing when irradiated with a certain wavelength of ultraviolet light (250 nm to 400 nm). SLA focuses on the surface of the light-curing material by focusing ultraviolet light of a specific wavelength and intensity to solidify it sequentially from point to line and from line to surface, thereby completing the drawing of a layered cross-section.
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