This is a summary of the second quarter fiscal 2009 earnings call conducted by Autodesk, Inc. (ADSK) on August 14, 2008.
Management:
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President, Chief Executive Officer: Director Carl Bass
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Vice President of Finance: Sue Pirri
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Director of Investor Relations: David Gennarelli
Key Investor Issues:
- Autodesk posted earnings of $89.8 million, or 39 cents per share, compared with earnings of $91.6 million, or 38 cents a share a year ago.
- Excluding charges related to stock options and other items, the company would have earned $130.3 million, or 56 cents a share, for the quarter.
- Revenue rose nearly 18% to $619.5 million.
- Revenue from licensing was $440.2 million while maintenance revenue was $179.3 million.
- For the third quarter, revenue is expected to come in between $625 million and $635 million. Earnings are seen between 54 cents and 56 cents per share, excluding charges.
Second Quarter Highlights:
Both revenue and EPS grew beyond expectations:
- Revenue for the quarter increased 18% over last year to $620 million.
- Diluted earnings per share were $0.39 on a GAAP basis and $0.56 non-GAAP.
By geography, results varied.
The Americas posted 4% growth for the quarter and there were a number of positive trends. There was a rebound in the company’s business in Canada and Autodesk posted a record quarter in Latin America. The company also continued to make inroads with its government business in the U.S., where Autodesk posted solid results of federal agencies, state agencies, and city level departments.
Outside of the Americas, the business in EMEA and Asia-Pacific continues to underpin the company’s overall revenue growth.
- Combined, these regions increased 26% in the second quarter. Even at constant currency, this growth rate was 13% overall, with pockets of exceptional growth.
- Revenue in emerging markets grew 40% and represented 18% of total revenue for the quarter.
The model-based 3D design solutions - Inventor, Revit, Civil 3D, NavisWorks, Robobat, and Moldflow - posted solid results and increased 36% to $166 million.
- 3D revenue was 27% of total revenue for the quarter.
- Excluding Moldflow, 3D solutions grew 31% to $159 million.
- The company shipped over 36,000 commercial seats of these products.
During this quarter and going forward, the company saw less correlation between revenue growth and seat growth, due to changes in the mix of geographies and products, proportion of maintenance in the user base, currency exchange rates, and average selling prices.
Revenue from 2D vertical products remained strong and increased 16% compared to the second quarter of fiscal 2008.
AutoCAD grew a solid 12%, while LT grew 6%. LT growth was impacted by very strong sales in the first quarter, in advance of the price increase instituted with the release of AutoCAD LT 2009.
The company closed four small acquisitions, including REALVIZ, Kynogon, Square One Research, and Green Building Studio.
The technologies acquired with these firms advance the company’s base of robust solutions for visualization, simulation, and analysis, as well as technology used to create energy efficient buildings.
The company also closed the acquisition of Moldflow in the quarter.
Moldflow has already made a meaningful contribution to the company’s business and there are opportunities to provide a fully digital development process for plastic injection part and mold design.
Net revenue in the quarter was $620 million, an increase of 18% as reported and 10% constant currency.
- License revenue increased 12% to $440 million.
- Revenue from new seats grew 8% in the quarter.
- Total upgrade revenue, including cross-grade, increased 27%.
