Autodesk 2016 Annual Report Download - page 121

2016 Form 10-K 49
Net Revenue by Geographic Area
Net revenue in the Americas geography increased by 8% as reported and 9% on a constant currency basis during fiscal
2016, as compared to the prior fiscal year, primarily due to a 20% increase in our new and adjacent product revenue and an 8%
increase in our suites revenue in this geography during fiscal 2016 as compared to fiscal 2015. The increase in this geography
was led by the U.S.
Net revenue in the EMEA geography decreased by 5% on an as reported basis and increased 3% on a constant currency
basis during fiscal 2016 as compared to the prior fiscal year. This decrease was primarily due to a 7% decrease in our flagship
products and a 5% decrease in our suites revenue in this geography during fiscal 2016 as compared to fiscal 2015. The decrease
in our revenue in this geography was led by Germany and Russia, partially offset by an increase in revenue from Ireland.
Net revenue in the APAC geography decreased 6% on an as reported basis and 1% on a constant currency basis, during
fiscal 2016 as compared to the prior fiscal year, primarily due to a 10% decrease in our flagship products, partially offset by an
8% increase in our new and adjacent product revenue in this geography. The decrease in revenue in this geography during fiscal
2016 was led by Japan, partially offset by an increase in revenue from China.
Net revenue in emerging economies decreased 4% on an as reported basis and 2% on a constant currency basis, during
fiscal 2016 as compared to the prior fiscal year, primarily due to decreases in revenue from Russia and Brazil, partially offset by
an increase in revenue from China. Revenue from emerging economies represented 15% of total net revenue for both fiscal
2016 and 2015, respectively.
International net revenue represented 68% and 71% of our total net revenue for fiscal 2016 and 2015, 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, MFG, PSEB, and M&E. We have no material inter-segment revenue.
Net revenue for AEC increased by 9% during fiscal 2016 as compared to the prior fiscal year primarily due to an 8%
increase in revenue from our AEC suites, which was primarily driven by Autodesk Building Design Suite and Autodesk
Infrastructure Design Suite.
Net revenue for MFG increased by 7% during fiscal 2016 as compared to the prior fiscal year primarily due to a 78%
increase in revenue from our Delcam products as a result of including 12 months of Delcam operating results during fiscal
2016, compared to 10 months during fiscal 2015. Also contributing to the increase in net revenue for MFG during fiscal 2016
was a 12% increase in revenue from our flagship product AutoCAD Mechanical.
Net revenue for PSEB decreased by 16% during fiscal 2016 as compared to the prior fiscal year primarily due to a 26%
decrease in revenue from our flagship product AutoCAD LT. Revenue from AutoCAD decreased by 4% in fiscal 2016 as
compared to fiscal 2015.
Net revenue for M&E decreased by 4% during fiscal 2016 as compared to the prior fiscal year, primarily due to a 21%
decrease in revenue from Creative Finishing, partially offset by a 1% increase in revenue from Animation. The decline in
Creative Finishing was marked by a decrease in revenue from Creative Finishing hardware products and by a general decrease
in the M&E industry end-market demand. The slight increase in Animation revenue was primarily due to a 168% increase in
our Shotgun product offering as a result of including a full year of Shotgun operating results in fiscal 2016 as compared to six
months during fiscal 2015, and a 7% increase in our Maya flagship product offerings, partially offset by a 46% decrease in our
Middleware product offerings. 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 and flexible enterprise offerings. At the beginning of the fourth quarter of fiscal 2016, we exited
2016 Annual Report