Revenue Recognition

12 Months Ended

Jan. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Revenue Disaggregation

Autodesk recognizes revenue from the sale of (1) product subscriptions, cloud service offerings, and enterprise business agreements (“EBAs”), (2) renewal fees for existing maintenance plan agreements that were initially purchased with a perpetual software license, and (3) consulting, training, and other products and services. The three categories are presented as line items on Autodesk’s Consolidated Statements of Operations.

Information regarding the components of Autodesk’s net revenue from contracts with customers by product family, geographic location, sales channel, and product type was as follows: 

	Fiscal Year ended January 31,
	2023		2022		2021
Net revenue by product family:
Architecture, Engineering and Construction (1)	$	2,278	$	1,969	$	1,649
AutoCAD and AutoCAD LT (1)	1,387		1,244		1,099
Manufacturing	978		876		799
Media and Entertainment	291		259		219
Other	71		38		24
Total net revenue	$	5,005	$	4,386	$	3,790
Net revenue by geographic area:
Americas
U.S.	$	1,720	$	1,457	$	1,282
Other Americas	372		308		260
Total Americas	2,092		1,765		1,542
Europe, Middle East and Africa	1,906		1,700		1,473
Asia Pacific	1,007		921		775
Total net revenue	$	5,005	$	4,386	$	3,790
Net revenue by sales channel:
Indirect	$	3,250	$	2,849	$	2,600
Direct	1,755		1,537		1,190
Total net revenue	$	5,005	$	4,386	$	3,790
Net revenue by product type (2):
Design	$	4,264	$	3,772	$	3,268
Make	452		364		296
Other	289		250		226
Total net revenue	$	5,005	$	4,386	$	3,790

___________________

(1)    During the year ended January 31, 2023, the Company corrected an immaterial classification error and reclassified certain revenue amounts between Architecture, Engineering and Construction and AutoCAD and AutoCAD LT. The year ended January 31, 2022 has been adjusted to conform to the current period presentation. These reclassifications did not impact total net revenue.

(2)    The prior period amount has been adjusted to conform to the current period presentation for a change in presentation of certain subscription plan offerings. See Note 1, “Business and Summary of Significant Accounting Policies” for further detail.

Payments for product subscriptions, industry collections, cloud subscriptions, and maintenance subscriptions are typically due up front with payment terms of 30 to 45 days. Payments on EBAs are typically due in annual installments over the contract term, with payment terms of 30 to 60 days. Autodesk does not have any material variable consideration, such as obligations for returns, refunds, warranties, or amounts payable to customers for which significant estimation or judgment is required as of the reporting date.

Remaining performance obligations consist of total short-term, long-term, and unbilled deferred revenue. As of January 31, 2023, Autodesk had remaining performance obligations of $5.62 billion, which represents the total contract price allocated to remaining performance obligations, which are generally recognized over the next three years. We expect to recognize $3.52 billion or 63% of our remaining performance obligations as revenue during the next 12 months. We expect to recognize the remaining $2.10 billion or 37% of our remaining performance obligations as revenue thereafter.

The amount of remaining performance obligations may be impacted by the specific timing, duration, and size of customer subscription and support agreements, the specific timing of customer renewals, the frequency of the billing installments, and foreign currency fluctuations.

Contract Balances

We receive payments from customers based on a billing schedule as established in our contracts. Contract assets relate to performance completed in advance of scheduled billings. Contract assets were not material as of January 31, 2023. Deferred revenue relates to billings in advance of performance under the contract. The primary changes in our contract assets and deferred revenues are due to our performance under the contracts and billings.

Revenue recognized during the fiscal years ended January 31, 2023 and 2022, that was included in the deferred revenue balances at January 31, 2022 and 2021, was $2.85 billion and $2.50 billion, respectively. The satisfaction of performance obligations typically lags behind billings received under revenue contracts from customers.