Autodesk, Inc. reports 694% EBITDA growth in 2020 and 14.3 pp EBITDA Margin growth from 2.7% to 17.0%
02/27/2020 • About Autodesk, Inc. (
$ADSK) • By InTwits
Autodesk, Inc. reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Autodesk, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 5.5% while average EBITDA Margin was 0.1% for the sames years
- Autodesk, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: $44m in 2020, $54m in 2019, $153m in 2018, $78m in 2017, $53m in 2016
- The company has highly profitable business model: ROIC is 16.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Autodesk, Inc.'s Revenue jumped on 27.4%. Revenue growth showed slowdown in FY20Q4 - it was 22.0% YoY. During FY2016-FY2020 Revenue growth bottomed in FY2017 at -18.9% and was accelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.6 pp from 35.7% to 33.1% in 2020. During the last 5 years EBITDA Margin bottomed in FY2018 at -19.5% and was growing since that time.
Gross Margin increased slightly on 1.2 pp from 88.9% to 90.1% in FY2020. During FY2016-FY2020 Gross Margin bottomed in FY2017 at 83.2% and was growing since that time. SG&A as a % of Revenue decreased on 6.9 pp from 59.3% to 52.4% in FY2020. During FY2016-FY2020 SG&A as a % of Revenue topped in FY2018 at 67.7% and was declining since that time.
Net Income margin increased on 9.7 pp from -3.1% to 6.6% in FY2020. During the last 5 years Net Income margin bottomed in FY2017 at -28.7% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.6% in FY2020. The company showed decline in CAPEX/Revenue of 2.1 pp from 3.7% in FY2017 to 1.6% in FY2020. Average CAPEX/Revenue for the last three years was 2.2%.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 4.6x. Net Debt / EBITDA dropped on 15.7x from 17.1x to 1.4x in FY2020. Debt jumped on 21.9% while cash surged on 100%.
Autodesk, Inc. has no short term refinancing risk: cash is higher than short term debt (356.5%).
Valuation and dividends
The company's trades at EV/EBITDA 74.1x and P/E 188.8x.
Management team
Autodesk, Inc.'s CEO is Andrew Anagnost. Andrew Anagnost has 4 years tenure with the company.
Financial and operational results
FY ended 01/31/2020
Autodesk, Inc. ($ADSK) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 2,504 | 2,031 | 2,057 | 2,570 | 3,274 | 27.4% |
| Gross Profit | 2,133 | 1,689 | 1,753 | 2,284 | 2,949 | 29.1% |
| SG&A | 1,309 | 1,310 | 1,392 | 1,524 | 1,716 | 12.6% |
| EBITDA | 147 | -360 | -401 | 70 | 557 | 693.6% |
| EBIT | 1 | -500 | -509 | | | |
| Tax | 310 | 58 | 10 | | | |
| Net Income | -331 | -582 | -567 | -81 | 215 | |
| Stock Based Compensation | 197 | 222 | 261 | | | |
Balance Sheet
|
|---|
| Cash | 1,353 | 1,213 | 1,078 | 886 | 1,775 | 100.3% |
| Accounts Receivable | 654 | 452 | 438 | | | |
| Accounts Payable | 120 | 94 | 95 | | | |
| Short Term Debt | 0 | 399 | 0 | 0 | 498 | |
| Long Term Debt | 1,488 | 1,092 | 1,586 | 2,088 | 2,047 | -2.0% |
Cash flow
|
|---|
| Capex | 72 | 76 | 51 | 67 | 53 | -20.6% |
| Acquisitions | 149 | 85 | | | | |
Ratios
|
|---|
| Revenue growth | -0.3% | -18.9% | 1.3% | 25.0% | 27.4% | |
| EBITDA growth | -44.8% | -345.0% | 11.2% | -117.5% | 693.6% | |
|
|---|
| Gross Margin | 85.2% | 83.2% | 85.2% | 88.9% | 90.1% | 1.2% |
| EBITDA Margin | 5.9% | -17.7% | -19.5% | 2.7% | 17.0% | 14.3% |
| EBIT Margin | 0.1% | -24.6% | -24.8% | | |
| SG&A, % of revenue | 52.3% | 64.5% | 67.7% | 59.3% | 52.4% | -6.9% |
| SBC, % of revenue | 7.9% | 10.9% | 12.7% | | |
| Net Income Margin | -13.2% | -28.7% | -27.6% | -3.1% | 6.6% | 9.7% |
| CAPEX, % of revenue | 2.9% | 3.7% | 2.5% | 2.6% | 1.6% | -1.0% |
|
|---|
| ROIC | 0.0% | -18.1% | -27.9% | -1.5% | 16.4% | 18.0% |
| ROE | -17.2% | -49.5% | | | | |
| Net Debt/EBITDA | 0.9x | | | 17.1x | 1.4x | -15.7x |
People
|
|---|
| Insider ownership | 0.3% | 0.3% | 0.3% | | | |
| Employees | 9,500 | 9,000 | 8,800 | | | |
| Revenue/Employee, th. $ | 264 | 226 | 234 | | | |
Autodesk, Inc. ($ADSK) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 736 | 797 | 843 | 899 | | 31.4% | 30.3% | 27.5% | 22.0% |
| EBITDA | 78 | 128 | 164 | 188 | | - | - | 329.1% | 185.8% |
| Net Income | -24 | 40 | 67 | 132 | | - | - | - | 103.7% |
Balance Sheet
|
|---|
| Cash | 883 | 924 | 956 | 1,775 | | -19.2% | 3.2% | 9.2% | 100.3% |
| Short Term Debt | 59 | 508 | 513 | 498 | | - | - | - | - |
| Long Term Debt | 2,229 | 1,648 | 1,530 | 2,047 | | 40.5% | 3.8% | -3.6% | -2.0% |
Ratios
|
|---|
| Gross Margin | 88.8% | 90.0% | 90.6% | 90.7% | | 0.7% | 1.4% | 1.5% | 1.2% |
| EBITDA Margin | 10.6% | 16.0% | 19.4% | 20.9% | | 16.2% | 16.4% | 13.7% | 12.0% |
| Net Income Margin | -3.3% | 5.0% | 7.9% | 14.7% | | 11.4% | 11.5% | 11.5% | 5.9% |
Peers in Application Software
Below you can find Autodesk, Inc. benchmarking vs. other companies in Application Software industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | - | -0.2% | -95.9% | 34.9% | 355,942.4% |
| AudioEye, Inc. ($AEYE) | - | 175.5% | 106.6% | 90.2% | 90.2% |
| Cloudera, Inc. ($CLDR) | - | 57.2% | 42.6% | 28.9% | 65.5% |
| Integrated Ventures Inc ($INTV) | - | - | - | -8.9% | 62.7% |
| Smartsheet Inc. ($SMAR) | - | 64.3% | 66.1% | 59.7% | 52.4% |
| |
|---|
| Median (92 companies) | 12.0% | 15.7% | 15.2% | 19.4% | 14.5% |
|---|
| Autodesk, Inc. ($ADSK) | - | -18.9% | 1.3% | 25.0% | 27.4% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Aware, Inc. ($AWRE) | 90.3% | 94.6% | 92.3% | 89.7% | 92.8% |
| Alteryx, Inc. ($AYX) | 81.3% | 83.4% | 91.0% | 90.6% | 91.1% |
| Smith Micro Software, Inc. ($SMSI) | 73.2% | 77.9% | 83.5% | 90.9% | 89.9% |
| Cadence Design Systems, Inc. ($CDNS) | 85.9% | 87.8% | 87.9% | 88.6% | 88.6% |
| Mitek Systems, Inc. ($MITK) | 90.2% | 91.1% | 86.3% | 85.5% | 87.0% |
| |
|---|
| Median (89 companies) | 63.8% | 64.4% | 65.3% | 67.9% | 69.4% |
|---|
| Autodesk, Inc. ($ADSK) | 85.2% | 83.2% | 85.2% | 88.9% | 90.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -1,837.2% | -1,118.0% | -40,379.4% | -23,127.1% | 52.2% |
| j2 Global, Inc. ($JCOM) | 41.7% | 36.5% | 35.7% | 38.6% | 40.5% |
| Intelligent Systems Corporation ($INS) | -5.4% | -12.8% | 33.6% | 43.6% | 40.4% |
| Adobe Inc. ($ADBE) | 31.2% | 34.2% | 35.3% | 35.8% | 39.7% |
| SS&C Technologies Holdings, Inc. ($SSNC) | 34.9% | 37.9% | 27.7% | 38.2% | 38.3% |
| |
|---|
| Median (89 companies) | -5.3% | -3.3% | -3.3% | 4.5% | 6.8% |
|---|
| Autodesk, Inc. ($ADSK) | 5.9% | -17.7% | -19.5% | 2.7% | 17.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| MicroStrategy Incorporated ($MSTR) | 0.5% | 0.8% | 1.4% | 2.1% | 234.8% |
| Integrated Ventures Inc ($INTV) | - | - | 199.9% | 15.2% | 27.2% |
| Intelligent Systems Corporation ($INS) | 3.8% | 9.7% | 4.3% | 4.9% | 19.2% |
| LivePerson, Inc. ($LPSN) | 5.5% | 7.9% | 8.8% | 16.3% | 11.4% |
| PROS Holdings, Inc. ($PRO) | 4.7% | 0.8% | 0.7% | 2.1% | 11.3% |
| |
|---|
| Median (87 companies) | 3.0% | 2.3% | 2.4% | 3.0% | 2.6% |
|---|
| Autodesk, Inc. ($ADSK) | 2.9% | 3.7% | 2.5% | 2.6% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -210.9% | -256.8% | -416.3% | -247.2% | 137.3% |
| Manhattan Associates, Inc. ($MANH) | 99.3% | 102.5% | 80.9% | 71.7% | 53.4% |
| Citrix Systems, Inc. ($CTXS) | 16.1% | 16.7% | 25.2% | 29.8% | 33.5% |
| Sonic Foundry, Inc. ($SOFO) | -18.1% | -50.6% | -786.4% | - | 31.3% |
| Paycom Software, Inc. ($PAYC) | 75.4% | 51.1% | 47.5% | 47.5% | 28.7% |
| |
|---|
| Median (92 companies) | -9.8% | -10.2% | -9.8% | -4.5% | -2.2% |
|---|
| Autodesk, Inc. ($ADSK) | 0.0% | -18.1% | -27.9% | -1.5% | 16.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dropbox, Inc. ($DBX) | - | -3.8x | - | 2.4x | 1,341.0x |
| Avaya Holdings Corp. ($AVYA) | - | - | 7.4x | - | 77.9x |
| Alteryx, Inc. ($AYX) | - | - | 2.5x | 6.1x | 32.2x |
| Five9, Inc. ($FIVN) | -6.7x | -8.6x | 7.3x | 5.3x | 17.6x |
| Synchronoss Technologies, Inc. ($SNCR) | - | - | - | - | 11.6x |
| |
|---|
| Median (53 companies) | -0.9x | -0.8x | -0.7x | 0.4x | 0.0x |
|---|
| Autodesk, Inc. ($ADSK) | 0.9x | - | - | 17.1x | 1.4x |
