Autodesk 2016 Annual Report Download - page 123

2016 Form 10-K 51
Net revenue in emerging economies increased 14% on an as reported basis and 13% on a constant currency basis, 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.
Net Revenue by Operating Segment
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.
Cost of Revenue and Operating Expenses
Cost of Revenue
Fiscal Year
Ended
January 31,
2016
Increase compared to
prior fiscal year
Fiscal Year
Ended
January 31,
2015
Increase compared to
prior fiscal year
Fiscal Year
Ended
January 31,
2014
$ % $ %
(in millions)
Cost of revenue:
License and other $ 214.6 $ 6.1 3% $ 208.5 $ 29.8 17% $ 178.7
Subscription 156.1 22.5 17% 133.6 38.0 40% 95.6
$ 370.7 $ 28.6 8% $ 342.1 $ 67.8 25% $ 274.3
As a percentage of net revenue 15% 14% 12%
Cost of license and other revenue includes labor costs associated with product setup and fulfillment and costs of
consulting and training services contracts and collaborative project management services contracts. Cost of license and other
revenue also includes stock-based compensation expense, direct material and overhead charges, amortization of developed
technology, allocated IT and facilities costs, professional services fees and royalties. Direct material and overhead charges
include the cost of hardware sold (mainly PC-based workstations for Creative Finishing in the M&E segment), and costs
associated with electronic and physical fulfillment.
Cost of license and other revenue increased 3% during fiscal 2016 as compared to fiscal 2015, primarily due to an
increase in hardware related costs from our consumer related products, an increase in allocated IT costs, and employee related
costs for product support and fulfillment driven by an increase in headcount, partially offset by a decrease in amortization of
developed technology. Cost of license and other revenue increased 17% during fiscal 2015, as compared to fiscal 2014,
2016 Annual Report