Autodesk 2009 Annual Report Download - page 114

Fiscal 2009 Net Revenue Compared to Fiscal 2008 Net Revenue
License and Other Revenue
License and other revenue are comprised of two components: all forms of product license revenue and other
revenue. Product license revenue includes revenue from the sale of new seat licenses, revenue from the Autodesk
upgrade program and revenue from the Autodesk crossgrade program. Other revenue consists of revenue from
consulting and training services, revenue from the Autodesk Developers Network, Autodesk Collaborative
Solution hosting revenue, revenue from Autodesk’s former Location Services division and revenue from
Advanced Systems product support. We divested the Location Services division in February 2009, and we do not
expect further revenue to be received from it (see Note 15, “Subsequent Events,” in Notes to Consolidated
Financial Statements for further information).
Total license and other revenue decreased 1% during fiscal 2009, as compared to fiscal 2008. Commercial
new seat revenue from our 3D model-based design products and 2D products for fiscal 2009 was flat compared
to fiscal 2008. During fiscal 2009, we experienced a decrease of approximately 13 percentage points due to lower
number of seat licenses sold, offset by an increase of approximately 13 percentage points due to higher average
net revenue per seat. During fiscal 2009, there was less correlation between revenue growth and seat license
growth due to changes in our mix of geographies and products, proportion of maintenance in the user base,
currency exchange rates, and average selling prices, and we expect this trend to continue. As a percentage of total
net revenue, license and other revenue was 69% for fiscal 2009, 75% for fiscal 2008, and 77% for fiscal 2007.
We expect license and other revenue to decrease in absolute dollars in fiscal 2010, as compared to fiscal 2009, as
a result of adverse economic pressures on our customers.
Upgrade revenue, which includes crossgrade revenue, decreased by 8% during fiscal 2009 as compared to
fiscal 2008, as expected. The decrease in upgrade revenue was driven primarily from the relatively smaller size
of the upgradeable base of our AutoCAD-based products in fiscal 2009 as compared to the upgradeable base of
our AutoCAD-based products in fiscal 2008, due to more customers on our maintenance program. Over the long
term, we expect revenue from upgrades to decrease as we continue to move customers onto our maintenance
program.
Revenue from the sales of our services, training and support, included in “License and other,” represented
less than 4% of net revenue for all periods presented.
Maintenance Revenue
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 29% for fiscal 2009 as compared to fiscal 2008.
Approximately 20 percentage points of the 29% increase was due to increases in program enrollment and
approximately 9 percentage points of the increase was due to higher net revenue per maintenance seat for fiscal
2009 as compared to the same period of the prior fiscal year. As a percentage of total net revenue, maintenance
revenue was 31% for fiscal 2009, 25% for fiscal 2008, and 23% for fiscal 2007. Our maintenance program,
available to most customers worldwide, continues to provide a cost effective and predictable budgetary option to
obtain the productivity benefits of upgrades and enhancements when and if released during the term of their
contracts. We expect maintenance revenue to decrease in absolute dollars in fiscal 2010 as a result of decreased
program enrollment from declines in new product sales as well as maintenance attach and renewal rates. At
January 31, 2009 our maintenance program enrollment consisted of about 1.7 million users.
Aggregate backlog at January 31, 2009 and January 31, 2008 was $569.5 million and $521.5 million,
respectively, of which $552.1 million and $506.1 million, respectively, represented deferred revenue and $17.4
million and $15.4 million, respectively, related to current software license product orders that had not yet shipped
at the end of each respective fiscal year. Deferred revenue consists primarily of deferred maintenance revenue.
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