Autodesk 2015 Annual Report Download - page 136

2015 Form 10-K 44
Net revenue in the APAC geography increased 5% on an as reported basis and 11% on a constant currency basis, during
fiscal 2015 as compared to the prior fiscal year, primarily due to a 4% increase in our flagship products and a 5% increase in
our suites products in this geography. Our revenue in this geography during fiscal 2015 benefited from increases in revenue
from South Korea and India, partially offset by a decrease in revenue from Japan.
Net revenue in emerging economies increased 14% during fiscal 2015 as compared to the prior fiscal year, primarily due
to increases in revenue from India and Mexico. Revenue from emerging economies represented 15% of total net revenue for
both fiscal 2015 and 2014.
International net revenue represented 71% and 70% of our total net revenue for fiscal 2015 and 2014, 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, including in emerging economies, 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, 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: AEC, PSEB, MFG, and M&E. We have no material inter-segment revenue.
Net revenue for AEC increased by 19% during fiscal 2015 as compared to the prior fiscal year primarily due to a 31%
increase in revenue from our AEC suites, which was primarily driven by Autodesk Building Design Suite and Autodesk
Infrastructure Design Suite.
Net revenue for PSEB increased by 1% during fiscal 2015 as compared to the prior fiscal year primarily due to a 3%
increase in revenue from our flagship product AutoCAD LT. Revenue from AutoCAD remained flat in fiscal 2015 as compared
to fiscal 2014.
Net revenue for MFG increased by 17% during fiscal 2015 as compared to the prior fiscal year primarily due to the
acquisition of Delcam plc ("Delcam"). Also contributing to the increase in net revenue for MFG was a 9% increase in revenue
from our MFG suites, which was primarily driven by the Autodesk Product Design Suite, as compared to fiscal 2014.
Net revenue for M&E decreased by 4% during fiscal 2015 as compared to the prior fiscal year, primarily due to an 11%
decrease in revenue from Creative Finishing and a 2% decrease in revenue from Animation. The decline in Creative Finishing
was marked by a general decrease in the M&E industry end-market demand, partially offset by a 33% increase in sales of our
Creative Finishing hardware products. The decrease in Animation revenue was primarily due to a 20% decrease in revenue
from our M&E suites, which was driven by our Autodesk Entertainment Creation Suite, partially offset by a 5% increase in our
flagship product 3ds Max. M&E revenue is impacted by a general decrease in the M&E industry end-market demand, the
planned inclusion of our M&E products in other Autodesk industry suites, and the business model transition as customers are
opting for desktop subscription.
Fiscal 2014 Net Revenue Compared to Fiscal 2013 Net Revenue
This discussion has been updated to conform with current period's presentation.
License and Other Revenue
Total License and other revenue decreased 8% during fiscal 2014 as compared to fiscal 2013. This decrease was
primarily due to a 7% decrease in product license revenue as compared to the same period in the prior fiscal year. The decline in
product license revenue was primarily due to a decrease of 15% in revenue from our flagship products partially offset by an
increase of 10% in our suites products.
During fiscal 2014, the 7% decrease in product license revenue was due to a 21% decrease in the number of seats sold
partially offset by a 14% increase in the average net revenue per seat. Product license revenue, as a percentage of License and
other revenue, was 89% for both fiscal 2014 and fiscal 2013.
2015 Annual Report