Autodesk 2014 Annual Report Download - page 116

2013 Annual Report
2014 Form 10-K 42
result of our transition to granting no or low-cost software licenses to educational institutions in select regions and to key
partners during fiscal 2014, consistent with our strategy.
Backlog related to current software license product orders that had not shipped at the end of the fiscal year decreased by
$0.3 million from $20.0 million at January 31, 2013 to $19.7 million at January 31, 2014. Backlog from current software
license product orders that we have not yet shipped consists of orders from customers with approved credit status for currently
available software products and may include both orders with current ship dates and orders with ship dates beyond the current
fiscal period.
Subscription Revenue
Our Subscription revenue consists of two components: maintenance revenue for our software products and revenue for
our cloud service offerings, including Autodesk 360. Our maintenance program provides our commercial and educational
customers of perpetual products 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 term of the maintenance agreement, which is generally between one and
three years but can occasionally be as long as five years. Revenue for our cloud service offerings is recognized ratably over the
contract term commencing with the date our service is made available to customers and all other revenue recognition criteria
have been satisfied.
Subscription revenue increased 7% during fiscal 2014 as compared to fiscal 2013 primarily due to a 9% increase in
commercial maintenance revenue. The 9% increase in commercial maintenance revenue was due to a 4% increase from
commercial enrollment during the corresponding maintenance contract term and a 5% increase from net revenue per
maintenance seat. Commercial maintenance revenue represented 95% and 94% of Subscription revenue for fiscal 2014 and
fiscal 2013, respectively.
Changes in Subscription revenue lag changes in net billings for subscription contracts because we recognize the revenue
from those contracts ratably over their contract terms. Net subscription billings remained flat during fiscal 2014 as compared to
the prior fiscal year primarily due to a decline in multi-year maintenance subscriptions partially offset by an increase in billings
from suites, which have higher maintenance subscription prices.
Our deferred subscription revenue balance at January 31, 2014 and January 31, 2013 was $789.3 million and $753.1
million, respectively, and primarily related to customer maintenance agreements, which will be recognized as revenue ratably
over the term of the maintenance agreement.
Net Revenue by Geographic Area
Net revenue in the Americas geography decreased by 2% as reported and on a constant currency basis during fiscal 2014,
as compared to the prior fiscal year. This decrease was primarily due to a 13% decrease in our flagship product revenue
partially offset by a 14% increase in our suites revenue in this geography during fiscal 2014 as compared to fiscal 2013. The
decrease in our revenue in this geography was led by Canada and Brazil partially offset by an increase in revenue from the U.S.
Net revenue in the Europe, Middle East and Africa ("EMEA") geography decreased by 2%, and remained flat on a
constant currency basis, during fiscal 2014 as compared to the prior fiscal year. This decrease was primarily due to a 13%
decrease in our flagship products partially offset by a 21% increase in our suites products in this geography during fiscal 2014
as compared to fiscal 2013. The decrease in our revenue in this geography was led by Ireland, Sweden, and the Netherlands
partially offset by an increase in revenue from Finland and the United Kingdom.
Net revenue in the APAC geography decreased 1% and increased by 5% on a constant currency basis, during fiscal 2014
as compared to the prior fiscal year, primarily due to a 3% decrease in our flagship products partially offset by a 10% increase
in our suites products in this geography. Our revenue in this geography during fiscal 2014 was impacted by decreases in
revenue from Australia, Japan, and Taiwan, partially offset by an increase in revenue from China.
Net revenue in emerging economies remained flat during fiscal 2014 as compared to the prior fiscal year, primarily due to
increases in revenue from Lebanon and China offset by a decrease in revenue from the Russian Federation. Revenue from
emerging economies represented 15% and 14% of total net revenue for fiscal 2014 and 2013, respectively.