About Autodesk Inc.

Autodesk is a pioneer in 3D design, engineering, and digital entertainment software. Since introducing its AutoCAD software in 1982, the company offers one of the broadest portfolios of 3D computer-aided design (CAD) software on the market. Its AutoCAD and Revit software is primarily used by architects, engineers, and structural designers to design, draft, and model buildings and other structures. Maya is a 3D animation software used in film visual effects and game development. Autodesk 360 provides cloud-based tools and services, plus mobile apps for smartphones and tablets that can be used by professionals, amateur designers, and students. Services offered include consulting, support, and training.

Operations

Autodesk's flagship AutoCAD product platform underpins all of the company's design product offerings and is a part of its largest business segment Platform Solutions and Emerging Business (PSEB), which accounts for 35% of sales. Its Architecture, Engineering and Construction (AEC), 32% of sales, and Manufacturing (MFG), 25% of sales, segments offer tailored versions of AutoCAD software for the specific industries that they serve, namely building and civil infrastructure and transportation, automotive, and industrial machinery.

Bringing in 8% of sales is Autodesk's fourth segment Media and Entertainment (M&E). Its two product groups -- animation and creative finishing - develop software that is specifically sold to creative professionals, post-production facilities, and broadcasters for everything from feature films and TV shows to games and Web design.

Autodesk also breaks revenue into money that comes from customers that license its products and those who use it through. Licensing revenue in 2014 was about $1.2 billion and revenue from subscriptions was about $1.1 billion.

The company has research and product development operations in the US, Canada, China, and Singapore, as well as software developers in other parts of the world.

Geographic Reach

Autodesk sells to customers globally, led by the Europe, Middle East and Africa (EMEA) region (39% of sales) and closely trailed by the Americas (36% of sales) and Asia/Pacific (27% of sales). The company's key markets are Australia, Belgium, Canada, France, Germany, Italy, Japan, South Korea, the UK, and the US. It operates in 115 locations around the world.

Sales and Marketing

Autodesk makes direct sales of its software licenses and services, but most sales come indirectly through a global network of about 2,500 resellers and distributors. For 2104 (ended January) about 84% of its revenue came from indirect sales channels. Autodesk relies heavily on its largest distributor,  Tech Data, which generated 24%, 23%, and 17% of net revenue for 2014, 2013, and 2012.

Autodesk's sales and marketing organizations are divided among three main regions: the Americas, EMEA, and Asia/Pacific. Those regional sales organizations work in conjunction with local sales offices.

Financial Performance

After four straight years of rising revenues, Autodesk revenue dropped 2% in 2014. Revenue came in at $2.27 billion for the year, off from $2.31 billion in 2013. Sales were down 10% in the media and entertainment segment and down 6% in the Platform Solutions and Emerging Business segment, in which sales were off for the AutoCAD and AutoCAD LT products. Autodesk's net income was also down in 2014, dropping almost 8% to about $229 million from $247 million in 2013. Besides the decline in revenue, the company had higher costs for and other items. In 2014 the company's cash flow from operations increased to $564 million compared to $559 million in 2013 mainly because of lower restructuring charges and higher account receivables.

Strategy

Autodesk's strategy today is predicated on the ongoing industry transition from the personal computer to cloud, mobile, and social computing. It is migrating many of its products to the cloud, which involves developing new cloud computing infrastructure and restructuring applications to fit the cloud. It is also delivering more of its products on mobile devices. In 2014, the company started offering flexible term-based licenses for certain products. The new terms are to offer customers more flexibility in how they use Autodesk products and address new types of customers such as project-based users and small businesses. In cloud computing, the company is developing capabilities that allow cloud-based collaborative Product Lifecycle Management, Building Information Modeling, and online simulation.

As it develops new products, Autodesk draws on both internal and third-party product development and acquisitions of businesses, products, and technology assets to enhance its design tools and build out its visualization, analysis, and simulation offerings. Annually, R&D expenditures are about 25% of Autodesk's net revenue.

Another key element of Autodesk's growth strategy is expanding in emerging markets. The company sees long-term growth opportunity in selling its design technology to help such markets with infrastructure build-out.

Another area in which Autodesk is staking a claim is 3D printing. The company released a opone source 3D printer called Ember and Spark, an open and free platform for 3D printing. Late in 2014, the company put its money where it wants its software to be, announcing it would invest $100 million in startups and researchers working on 3D printing technology.

Mergers and Acquisitions

In the past two years, Autodesk has practiced acquisition-aided design to add capabilities in strategic areas.

In an effort to beef up its cloud cred, Autodesk in 2014 acquired Shotgun Software, a developer of cloud-based production software for the film, television, and games industries. Shotgun's 500-plus customers include leading studios.

Also in 2014, Autodesk got some game, buying Stockholm-based Bitsquid AB, the creator of the Bitsquid game engine. Bitsquid brings expertise in 3D game development and technology that will help Autodesk to strengthen its portfolio of tools for game makers through the development of a new 3D game engine.

In another acquisition, the company acquired the technology and the development team of Circuits.io, a web-based app and connected community for designing and simulating electronic circuits. Autodesk partnered with the Circuits.io team to introduce Autodesk 123D Circuits in 2013, and through this acquisition Autodesk intends to expand its offering of technology for electronic circuit design and simulation.

In a bid to expand its offerings for manufacturers, in early 2014 it bought UK-based  Delcam (provider of CAM software) for $286 million. Autodesk also agreed to buy structural fabrication and detailing technology assets from Graitec.

In 2013 the company bought privately held German software company PI-VR, which specializes in real-time visualization for the automotive industry. Visualization technology reduces the need for often costlier physical prototypes. The company also acquired Allpoint Systems Technology that year, which develops cloud-based reality capture software and complements Autodesk's existing technology, and Firehole Technologies, which provides design and analysis software for composite materials.

In 2012 Autodesk acquired  Pramati's social collaboration software Qontext to capitalize on the move toward mobile, cloud, and social computing. That same year it boosted its simulation technologies development with the purchase of Naiad, a liquid simulation technology used to create water and other fluid effects in films and other applications. The technology was used in blockbuster movies such as Avatar, Harry Potter, and X-Men.

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Autodesk Inc.

111 Mcinnis Pkwy
San Rafael, CA 94903-2700
Phone: 1 (415) 507-5000
Fax: 1 (415) 507-5100
usa.autodesk.com

Stats

  • Employer Type: Public
  • Stock Symbol: ADSK
  • Stock Exchange: NASDAQ
  • President and CEO: Carl Bass
  • Chairman: Crawford W. Beveridge
  • SVP and CFO: R. Scott Herren

Major Office Locations

  • San Rafael, CA

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