Autodesk 2012 Annual Report Download - page 102

Maintenance Revenue
Our maintenance revenue relates to a program known by our user community as the Subscription Program. Our
maintenance program provides our commercial and educational customers with a cost effective and predictable budgetary
option to obtain the productivity benefits of our new releases and enhancements when and if released during the term of their
contracts. Under our maintenance program, customers are eligible to receive unspecified upgrades when and if available,
downloadable training courses and online support. We recognize maintenance revenue ratably over the maintenance contract
periods.
Maintenance revenue increased 10% during fiscal 2012, as compared to fiscal 2011, primarily due to a 10% increase in
commercial maintenance revenue. The 10% increase in commercial maintenance revenue was due to an 8 percentage point
increase in commercial enrollment during the corresponding maintenance contract term and a 2 percentage point increase in net
revenue per maintenance seat. Commercial maintenance revenue represented 98% of maintenance revenue for both fiscal 2012
and 2011. Total subscription program enrollment at January 31, 2012 and 2011 consisted of about 3.2 million users and 2.9
million users, respectively.
Changes in maintenance revenue lag changes in net billings for maintenance contracts because we recognize the revenue
from those contracts ratably over their contract terms. Our maintenance contracts are for a term of predominantly one year, but
may be two or three year, or occasionally as long as five year, terms. Net maintenance billings increased 19% during fiscal
2012 as compared to fiscal 2011. This increase was due to an increase in maintenance renewals, new multi-year maintenance
contracts, and the impact from the upgrade promotions mentioned above in "License and Other Revenue."
Deferred revenue for fiscal 2012 and 2011 was $719.2 million and $587.9 million, respectively. Deferred revenue
consists primarily of deferred maintenance revenue. To a lesser extent, deferred revenue consists of deferred license and other
revenue derived from hosted technology solutions, consulting services and deferred license sales.
Net Revenue by Geographic Area
Net revenue in the Americas geography increased by 14% both as reported and constant currency basis, during fiscal
2012, as compared to fiscal 2011. This increase was primarily due to a 14% increase in revenue from new seats during fiscal
2012 as compared to fiscal 2011. Maintenance revenue increased 10% during fiscal 2012 as compared to fiscal 2011. This
increase in our revenue in this geography was led by the U.S. and Canada.
Net revenue in the EMEA geography increased by 10% both as reported and constant currency basis, during fiscal 2012
as compared to fiscal 2011. The increase was primarily due to a 14% increase in new seat revenue and a 6% increase in
maintenance revenue. The increase in our revenue in this geography was led by the Russian Federation, Belgium, United
Kingdom and Germany.
Net revenue in the APAC geography increased by 19%, or 12% on a constant currency basis, during fiscal 2012, as
compared to fiscal 2011, primarily due to a 20% increase in new seat revenue and a 21% increase in maintenance revenue. Net
revenue expansion in the APAC geography during fiscal 2012 occurred in virtually all countries, led by Japan and followed by
Australia and South Korea.
Net revenue in emerging economies increased by 16%, or 13% on a constant currency basis, during fiscal 2012 as
compared to fiscal 2011, primarily due to revenue from the Russian Federation, India, Mexico, and Brazil. This growth was a
significant factor in our international sales growth during fiscal 2012. Revenue from emerging economies represented 16% of
net revenue for fiscal 2012 and 15% for fiscal 2011.
International net revenue represented 72% and 71% of our net revenue in fiscal 2012 and fiscal 2011, respectively. We
believe that international revenue will continue to comprise a majority of our total net revenue. Unfavorable economic
conditions in the countries that contribute a significant portion of our net revenue may have an adverse effect on our business in
those countries and our overall financial performance. Changes in the value of the U.S. dollar relative to other currencies have
significantly affected, and could continue to significantly affect, our financial results for a given period even though we hedge a
portion of our current and projected revenue. Additionally, the U.S. credit-rating downgrade and weak global economic
conditions that have been characterized by restructuring of sovereign debt, high unemployment, and volatility in the financial
markets may impact our future financial results.
Net Revenue by Operating Segment
We have four reportable segments: Platform Solutions and Emerging Business (“PSEB”), Architecture, Engineering and
Construction (“AEC”), Manufacturing (“MFG”) and Media and Entertainment (“M&E”). We have no material inter-segment
revenue.
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