Summary

• Autodesk, Inc. stands as a global leader in 3D design, engineering, and entertainment technology solutions across various domains, including architecture, engineering, construction, product design, manufacturing, media, and entertainment.
• The Company's software products, accessible through a hybrid of desktop and cloud functionality.
• The company sells its products and services globally through a combination of indirect and direct channels. Indirect channels encompass value-added resellers, direct market resellers, distributors, and other software developers.
• In the fiscal year ending on January 30, 2023, the company witnessed substantial growth in sales, with total sales reaching $5,005 million. This marked an increase of $619 million or 14% compared to the sales figure of $4,386 million in the fiscal year ending on January 30, 2022.
• The company's gross profit for 2023 amounted to $4,525 million, reflecting a difference of $557 million or 14% from the gross profit of $3,968 million in the previous year, 2022.
• Additionally, the company's operating profit increased in 2023, totaling $989 million, which was higher by $371 million or 60% compared to the operating profit of $618 million in 2022.
• The net profit for the year 2023 was $823 million, representing an increase of $326 million or 66% compared to the net profit of $497 million in 2022.
• Moreover, the diluted earnings per share (EPS) for 2023 were reported as $3.78, which showed an increase of $1.54 or 69% compared to the diluted EPS of $2.24 in 2022.

Brief Company Overview

Autodesk, Inc. (NYSE:ADSK) stands as a global leader in 3D design, engineering, and entertainment technology solutions across various domains, including architecture, engineering, construction, product design, manufacturing, media, and entertainment. The Company's software products, accessible through a hybrid of desktop and cloud functionality, empower its customers to conceptualize, simulate, and analyze real-world performance at the early stages of the design process, facilitating the design, fabrication, manufacturing, and construction of diverse projects. These advanced features enable customers to foster innovation, optimize designs, streamline manufacturing and construction processes, save time and resources, enhance quality, achieve more sustainable outcomes, communicate plans effectively, and collaborate seamlessly with others.

The company sells its products and services globally through a combination of indirect and direct channels. Indirect channels encompass value-added resellers, direct market resellers, distributors, and other software developers. Transition agreements have been established with distributors Tech Data and Ingram Micro, outlining a one-to-two-year period for transition distribution activities, with potential extensions. In alignment with these agreements, Autodesk aims to enhance its selling efforts with value-added resellers and agents. Direct channels involve internal sales resources dedicated to selling in major accounts, highly specialized solutions, and transactions conducted through the online Autodesk branded store. The company anticipates ongoing changes in its channel mix as it expands its online Autodesk branded store business and witnesses a shift in its largest accounts towards direct-only business models.

As of December 2023, the company had a 52-week share price range of $259.25 to $188.28. The forwarding P/E ratio of the company is 32.36 times, the price-to-sales ratio (ttm) is 10.39 times, the profit margin is 17.15%, the operating margin is 24.40%, the return on assets (ttm) is 7.95%, the return on equity is 76.80%, and the diluted earnings per share (ttm) is $4.23. As of July 29, 2022 there were approximately 215.8 million shares of the registrant’s common stock outstanding that were held by non-affiliates, and the aggregate market value of such shares held by non-affiliates of the registrant was approximately $47.0 billion. As of March 7, 2023, the registrant had outstanding 214,782,702 shares of common stock..

Recent Developments

• In the third quarter of 2024, Autodesk forged an alliance with Pixar, Adobe, Apple, and NVIDIA. In collaboration with of construction payment and compliance management solutions. This strategic move is part of the construction industry's ongoing digital transformation, addressing challenges related to late payments and cash flow constraints. By integrating Payapps' best-in-class cloud offerings, Autodesk aims to provide more efficient, transparent, and compliant payment processes, ultimately improving the construction industry's workflows and facilitating greater collaboration among project stakeholders.¹
• In the second quarter of 2023, Autodesk forged an alliance with Pixar, Adobe, Apple, and NVIDIA. In collaboration with the Joint Development Foundation (JDF), affiliated with the Linux Foundation, they announced the formation of the Alliance for OpenUSD (AOUSD). This alliance aims to advance the standardization and development of Pixar's Universal Scene Description (USD) technology, promoting interoperability and growth within the 3D ecosystem. Chaired by Pixar's CTO Steve May, AOUSD will focus on developing specifications for OpenUSD, facilitating wider adoption and integration, and serving as a collaborative forum for industry-wide contributions to the evolution of this high-performance 3D scene description technology.²

Recent Financing Activities

• During the first nine months of fiscal 2023, Autodesk repurchased around 4.4 million shares at an average price of approximately $200 per share.³

Financial Performance Highlights

Q3 2023 Highlights

In the third quarter ending on January 30, 2024, the company reported sales of $1,414 million, indicating an increase of $96 million or 7.3% compared to the third quarter ending on January 30, 2023, which recorded sales of $1,318 million. The net profit for the third quarter of 2024 was $241 million, reflecting a decrease of $52 million or 17.7% when compared to the net profit of $293 million in the third quarter of 2023. Furthermore, the company's diluted earnings per share (EPS) for the third quarter of 2024 decreased to $1.12, a negative change of $0.23 or 17% compared to the diluted EPS of $1.35 in the third quarter of 2023.

Annual Performance Highlights

In the fiscal year ending on January 30, 2023, the company witnessed substantial growth in sales, with total sales reaching $5,005 million. This marked an increase of $619 million or 14% compared to the sales figure of $4,386 million in the fiscal year ending on January 30, 2022. The company's gross profit for 2023 amounted to $4,525 million, reflecting a difference of $557 million or 14% from the gross profit of $3,968 million in the previous year, 2022. Additionally, the company's operating profit increased in 2023, totaling $989 million, which was higher by $371 million or 60% compared to the operating profit of $618 million in 2022. The net profit for the year 2023 was $823 million, representing an increase of $326 million or 66% compared to the net profit of $497 million in 2022. Moreover, the diluted earnings per share (EPS) for 2023 were reported as $3.78, which showed an increase of $1.54 or 69% compared to the diluted EPS of $2.24 in 2022.

In the fiscal year ending January 31, 2023, the company experienced significant growth in net revenue across its primary product families. The Architecture, Engineering, and Construction (AEC) product family saw a substantial increase of $309 million or 16%, attributed to growth in revenue from AEC Collections, EBAs, Revit, and Autodesk Build. AutoCAD and AutoCAD LT exhibited an increase of $143 million or 11%, driven by growth in revenue from both AutoCAD and AutoCAD LT. The Manufacturing (MFG) product family recorded a growth of $102 million or 12%, attributed to increased revenue from MFG Collections, Fusion360, Vault, and EBAs. Similarly, the Media and Entertainment (M&E) product family experienced growth of $32 million or 12%, driven by increased revenue from Maya, 3DS Max, and M&E Collections. Additionally, the "Other" category showed substantial growth of $33 million or 87%. These positive changes reflect the company's effective strategies and market demand for its diverse product offerings, reinforcing its overall financial performance.

Operating Activities: In fiscal 2023, the company reported net cash provided by operating activities amounting to $2,071 million. This figure was primarily composed of $823 million in net income, adjusted for non-cash items totaling $556 million. These non-cash items included stock-based compensation expense, depreciation, amortization, accretion expense, lease-related asset impairment charges, and deferred income tax. The increase in cash provided by working capital was mainly attributed to a net increase in deferred revenue amounting to $798 million. This rise was propelled by an increase in product subscriptions and EBA offerings. However, this positive trend was partially offset by a change in accounts receivable, amounting to $247 million, influenced by the seasonality of billings in the fourth fiscal quarter and the timing of cash collections from customers..

Investing Activities: Net cash used in investing activities was $143 million for fiscal 2023 and was primarily due to purchases of marketable securities and business combinations, net of cash acquired, partially offset by sales and maturities of marketable securities.

Financing Activities: In fiscal 2023, the company reported net cash used in financing activities totaling $1,487 million. This significant outflow was primarily attributed to activities such as the repurchase of common stock and the repayment of debt

Business Overview

Autodesk's architecture, engineering, and construction products enhance the design, construction, and operation of building, infrastructure, and industrial projects. Their product development and manufacturing software cater to various industries, offering comprehensive digital solutions for design, engineering, manufacturing, and production. Autodesk’s product offerings include:

1. ^ https://itwire.com/guest-articles/guest-opinion/autodesk-signs-definitive-agreement-to-acquire-payapps-for-global-payment-and-compliance-management.html
2. ^ https://www.animationmagazine.net/2023/08/pixar-adobe-apple-autodesk-nvidia-form-openusd-alliance-to-drive-open-standards-for-3d-content/
3. ^ https://www.prnewswire.com/news-releases/autodesk-inc-announces-fiscal-2023-third-quarter-results-301685521.html