- First quarter revenue grew 12 percent, and 13 percent at constant exchange rates, to $1.4 billion.- Current remaining performance obligations were $3.9 billion, up 12 percent year over year. SAN FRANCISCO, June 11, 2024 /PRNewswire/ -- Autodesk, Inc. (NASDAQ:ADSK) today reported financial results for the first quarter of fiscal 2025. All growth rates are compared to the first quarter of fiscal 2024, unless otherwise noted. A reconciliation of GAAP to non-GAAP results is provided in the accompanying tables. For definitions, please view the Glossary of Terms later in this document. First Quarter Fiscal 2025 Financial Highlights Total revenue increased 12 percent to $1.42 billion; GAAP operating margin was 21 percent, up 4 percentage points; Non-GAAP operating margin was 35 percent, up 3 percentage points; GAAP diluted EPS was $1.16; Non-GAAP diluted EPS was $1.87; Cash flow from operating activities was $494 million; free cash flow was $487 million. "Autodesk is ahead of its peers in 3D AI and the industry clouds, platforms, and business model evolution that will be needed to deliver 3D AI products and services at scale. We can already use generative AI to quickly generate functional 3D shapes from a variety of inputs including 2D images, text, voxels and point clouds. We are well on the way to reasoning about all CAD geometry," said Andrew Anagnost, Autodesk president and CEO. "We intend to retain and extend this lead while also driving to an industry-leading 'Rule of Forty' ratio of 45 or more." Additional Financial Details Total billings decreased 5 percent to $1.11 billion. Total revenue was $1.42 billion, an increase of 12 percent as reported, and 13 percent on a constant currency basis. Recurring revenue represents 97 percent of total. Design revenue was $1.20 billion, an increase of 10 percent as reported, and 12 percent on a constant currency basis. On a sequential basis, Design revenue decreased 2 percent as reported, and 1 percent on a constant currency basis. Make revenue was $145 million, an increase of 20 percent as reported, and 21 percent on a constant currency basis. On a sequential basis, Make revenue increased 5 percent as reported and on a constant currency basis. Subscription plan revenue was $1.33 billion, an increase of 11 percent as reported, and 13 percent on a constant currency basis. On a sequential basis, subscription plan revenue decreased 1 percent as reported and on a constant currency basis. Net revenue retention rate remained within the range of 100 to 110 percent, on a constant currency basis. GAAP operating income was $299 million, compared to $217 million in the first quarter last year. GAAP operating margin was 21 percent, up 4 percentage points compared to the first quarter last year. Total non-GAAP operating income was $490 million, compared to $404 million in the first quarter last year. Non-GAAP operating margin was 35 percent, up 3 percentage points compared to the first quarter last year. GAAP diluted net income per share was $1.16, compared to $0.75 in the first quarter last year. Non-GAAP diluted net income per share was $1.87, compared to $1.55 in the first quarter last year. Deferred revenue decreased 12 percent to $3.96 billion. Unbilled deferred revenue was $1.93 billion, an increase of $1.03 billion compared to the first quarter last year. Remaining performance obligations ("RPO") increased 9 percent to $5.89 billion. Current RPO increased 12 percent to $3.92 billion. Cash flow from operating activities was $494 million, a decrease of $229 million compared to the first quarter last year. Free cash flow was $487 million, a decrease of $227 million compared to the first quarter last year.   First  Quarter Fiscal 2025 Business Highlights Net Revenue by Geographic Area Three Months Ended April 30, 2024 Three Months Ended April 30, 2023 Change compared to prior fiscal year Constant currency change compared to prior fiscal year (In millions, except percentages) $ % % Net Revenue: Americas U.S. $                    509 $                    456 $     53 12 % * Other Americas 110 97 13 13 % * Total Americas 619 553 66 12 % 12 % EMEA 534 474 60 13 % 14 % APAC 264 242 22 9 % 14 % Total Net Revenue $                  1,417 $                 1,269 $   148 12 % 13 % *  Constant currency data not provided at this level.   Net Revenue by Product Family Our product offerings are focused in four primary product families: Architecture, Engineering and Construction ("AEC"), AutoCAD and AutoCAD LT, Manufacturing ("MFG"), and Media and Entertainment ("M&E"). Three Months Ended April 30, 2024 Three Months Ended April 30, 2023 Change compared to prior fiscal year (In millions, except percentages) $ % AEC $                      674 $                    582 $          92 16 % AutoCAD and AutoCAD LT 376 349 27 8 % MFG 268 246 22 9 % M&E 71 71 — — % Other 28 21 7 33 % Total Net Revenue $                    1,417 $                 1,269 $       148 12 % Business Outlook The following are forward-looking statements based on current expectations and assumptions, and involve risks and uncertainties, some of which are set forth below under "Safe Harbor Statement."  Autodesk's business outlook for the second quarter and full-year fiscal 2025 considers the current economic environment and foreign exchange currency rate environment. A reconciliation between the fiscal 2025 GAAP and non-GAAP estimates is provided below or in the tables following this press release. Second Quarter Fiscal 2025 Q2 FY25 Guidance Metrics Q2 FY25(ending July 31, 2024) Revenue (in millions) $1,475 - $1,490 EPS GAAP $1.12 - $1.18 EPS non-GAAP (1) $1.98 - $2.04 (1) Non-GAAP earnings per diluted share excludes $0.80 related to stock-based compensation expense, $0.15 for the amortization of both purchased intangibles and developed technologies, and $0.07 for acquisition-related costs, partially offset by ($0.16) related to GAAP-only tax charges.   Full Year Fiscal 2025 FY25 Guidance Metrics FY25(ending January 31, 2025) Billings (in millions) $5,810 - $5,960Up 12% - 15% Revenue (in millions) (1) $5,990 - $6,090Up 9% - 11% GAAP operating margin 21% - 22% Non-GAAP operating margin (2) 35% - 36% EPS GAAP $4.71 - $4.93 EPS non-GAAP (3) $7.99 - $8.21 Free cash flow (in millions) (4) $1,430 - $1,500 (1) Excluding the impact of foreign currency exchange rates and hedge gains/losses, revenue guidance range would be approximately 1 percentage point higher. (2) 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. (3) Non-GAAP earnings per diluted share excludes $3.16 related to stock-based compensation expense, $0.57 for the amortization of both purchased intangibles and developed technologies, and $0.20 related to acquisition-related costs, partially offset by ($0.65) related to GAAP-only tax charges. (4) Free cash flow is cash flow from operating activities less approximately $30 million of capital expenditures. The second quarter and full-year fiscal 2025 outlook assume a projected annual effective tax rate of 21 percent and 19 percent for GAAP and non-GAAP results, respectively. Shifts in geographic profitability continue to impact the annual effective tax rate due to significant differences in tax rates in various jurisdictions. Therefore, assumptions for the annual effective tax rate are evaluated regularly and may change based on the projected geographic mix of earnings. Earnings Conference Call and Webcast Autodesk will host its first quarter conference call today at 5 p.m. ET. The live broadcast can be accessed at autodesk.com/investor. A transcript of the opening commentary will also be available following the conference call.  A replay of the broadcast will be available at 7 p.m. ET at autodesk.com/investor. This replay will be maintained on Autodesk's website for at least 12 months. Investor Presentation Details An investor presentation, Excel financials and other supplemental materials providing additional information can be found at autodesk.com/investor. Key Performance Metrics 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. These metrics are not intended to be combined with those items. We use these metrics to monitor the strength of our recurring business. We believe these metrics are useful to investors because they can ...