Autodesk: 27/11/2024 - Autodesk Inc.: Q3'25 Earnings Slide Presentation

Third quarter fiscal 2025 earnings November 26, 2024 © 2024 Autodesk. All rights reserved. Third quarter fiscal 2025 $1.54B Billings $1.57B Total revenue $199M Free cash flow 36% Non-GAAP operating margin See appendix for glossary of terms and see Excel financials for additional information: investors.autodesk.com/financials/quarterly-results 3 Q3 FY25 revenue mix by product family & geography MFG APAC $307M $285M Up 14% Y/Y M&E and Up 10% Y/Y $114M Other $705M Americas $751M Up 16% Y/Y Up 10% Y/Y AEC Up 11% Y/Y $398M $580M Up 7% Y/Y Up 12% Y/Y AutoCAD and AutoCAD LT EMEA Totals may not sum due to rounding. 4 Demonstrated progress on executing strategic plan STRATEGIC INITIATIVES A leader in attractive markets with strong secular growth potential: Accelerating digital transformation in AEC, and the transition to the cloud in manufacturing and media and entertainment, are driving customers to break down siloed workflows and seamlessly connect data end to end in the cloud Aggressive pursuit of strategy to realize secular opportunity: Capitalizing on leadership by developing end-to-end solutions which expand Autodesk's addressable market, drive efficiency and sustainability for customers and Autodesk, and position us ahead of peers in cloud, platform and AI Differentiated business: Subscription business model and diversified product and customer portfolio makes Autodesk resilient Disciplined and focused execution and capital deployment: Modernization of our go-to-market approach builds direct and durable relationships with our customers and enables us to serve them more efficiently. This supports revenue, margin, and free cash flow growth and will deliver sustainable shareholder value over many years FINANCIAL HIGHLIGHTS Revenue growth: Delivered double-digit annual revenue growth at scale, >95% recurring Margin enhancement: Expanded underlying non-GAAP operating margins (excluding impacts of new transaction model and FX) by ~300 basis points since FY23 - on track to reach FY26 target of 38-40% in FY25 (1) , a year ahead of schedule. We expect the new transaction model and subsequent go-to- market optimization to increase sales and marketing efficiency and deliver GAAP margins among the best in the industry FCF growth: On track to deliver $2.05B of FCF at the midpoint in FY26 Returning capital to shareholders: Repurchased about $3B of stock which offset dilution and reduced share count by about 5M shares over the last three years. Pace of buybacks to offset dilution is expected to accelerate into FY26 as FCF builds from the FY24 trough Analysis excludes FX impact of (~1 pt) in both FY24 & FY25 and new transaction model impact of (1 to 1.5 pts) in FY25. FX impacts represent difference between as reported non-GAAP operating margin and non-GAAP operating margin when applying FY23 actual blended average FX rates. 5 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 midpoint 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 bps of improvements since fiscal 23 Please note: Analysis excludes FX impact of (~1 pt) in both FY24 & FY25 and new transaction model impact of (1 to 1.5 pts) in FY25. FX impacts represent difference between as reported non-GAAP operating margin and non-GAAP operating margin when applying FY23 actual blended average FX rates. 6 Outlook 7 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 21.5% - 22% Non-GAAP operating margin (4) 35.5% - 36% EPS GAAP $4.95 - $5.01 EPS non-GAAP (5) $8.29 - $8.35 Free cash flow (in millions) (6) $1,470 - $1,500 GAAP to Non-GAAP reconciliations in the appendix. Non-GAAP earnings per diluted share excludes $0.85 related to stock-based compensation expense, $0.17 for the amortization of both purchased intangibles and developed technologies, and $0.05 for acquisition-related costs, partially offset by ($0.18) related to GAAP-only tax charges. Excluding the impact of foreign currency exchange rates and hedge gains/losses, revenue guidance range would be approximately 1 percentage point higher. Non-GAAP operating margin excludes approximately 11% related to stock-based compensation expense, approximately 2% for the amortization of both purchased intangibles and developed technologies, and approximately 1% related to acquisition-related costs. Non-GAAP earnings per diluted share excludes $3.15 related to stock-based compensation expense, $0.61 for the amortization of both purchased intangibles and developed technologies, $0.23 related to acquisition-related costs, and $0.04 related to losses on strategic investments, partially offset by ($0.69) related to GAAP-only tax charges. 8 (6) Free cash flow is cash flow from operating activities less approximately $30 million of capital expenditures. 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 percent of total deferred for FY25 at constant currency revenue to be in the high single digit percent Gross margins to be approximately flat year over year Other income and expense (net) to be approximately $30 to $35 million Effective tax rate of 19 percent Share count to be broadly consistent with prior years 9 New transaction model 10 New transaction model Creates a direct relationship between Autodesk and its customers Requestsa quotefrom solutionprovider. Helpscustomerwithsolution designandconfiguresquotein the Autodesk system. Sendsthe quotetocustomer. Acceptsquoteand pays Autodesk 11 Attachments Original document Permalink Disclaimer Autodesk Inc. published this content on November 27, 2024 , and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 27, 2024 at 05:23:21.742 .