Adobe posts record revenue yet again, earning $2.08 billion in Q1 of 2018
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It's starting to feel old hat by now: another quarter, another record-breaking earnings report coming out of Adobe. No matter how much people—present company certainly not excluded—gripe about Adobe's move to the Creative Cloud subscription model, the software company is absolutely raking in the dough as a result.
The last record-breaking revenue report we shared out of Adobe came in Q3 of 2017, when Adobe announced that it had earned $1.84 billion that quarter. Now, in Q1 of 2018, the company is staring at that figure in the rearview mirror.
This quarter, Adobe is posting record quarterly revenue of $2.08 billion, $1.23 billion of which came straight from Creative Cloud in the Digital Media Segment. That $2.08B figure represents a jump of 24 percent year-over-year, and contributes to the 43 percent growth in YoY operating income and 64 percent growth in YoY net income that Adobe also revealed.
You can dive into the nitty gritty details in the release below, and see the full number-by-number breakdown in this PDF.
Adobe Achieves Record Revenue
Creative ARR Exceeds $5 Billion in Q1 FY2018
Thursday, March 15, 2018 4:05 pm EDT | San Jose, California – Adobe (Nasdaq:ADBE) today reported strong financial results for its first quarter fiscal year 2018 ended March 2, 2018.
- Adobe achieved record quarterly revenue of $2.08 billion in its first quarter of fiscal year 2018, which represents 24 percent year-over-year revenue growth.
- Diluted earnings per share was $1.17 on a GAAP-basis, and $1.55 on a non-GAAP basis.
- Digital Media segment revenue was $1.46 billion, with Creative revenue growing to $1.23 billion and Document Cloud achieving revenue of $231 million.
- Digital Media Annualized Recurring Revenue (“ARR”) grew to $5.72 billion exiting the quarter, a quarter-over-quarter increase of $336 million. Creative ARR grew to $5.07 billion, and Document Cloud ARR grew to $647 million.
- Digital Experience segment revenue was $554 million, which represents 16 percent year-over-year growth.
- Operating income grew 50 percent and net income grew 46 percent year-over-year on a GAAP-basis; operating income grew 43 percent and net income grew 64 percent year-over-year on a non-GAAP basis.
- Cash flow from operations was $990 million, and deferred revenue grew 25 percent year-over-year to approximately $2.57 billion.
- Adobe repurchased approximately 1.6 million shares during the quarter, returning $301 million of cash to stockholders.
A reconciliation between GAAP and non-GAAP results is provided at the end of this press release and on Adobe’s website.
“Adobe’s outstanding growth is driven by enabling our customers to be more creative, work smarter and transform their businesses through our relentless focus on delivering innovation and intelligence across our solutions,” said Shantanu Narayen, president and CEO, Adobe.
“Our leadership in the large addressable markets we created, combined with Adobe’s leveraged operating model, contributed to another record quarter in Q1," said Mark Garrett, executive vice president and CFO, Adobe.
Adobe to Webcast Earnings Conference Call
Adobe will webcast its first quarter fiscal year 2018 earnings conference call today at 2:00 p.m. Pacific Time from its investor relations website: www.adobe.com/ADBE. Earnings documents, including Adobe management’s prepared conference call remarks with slides, financial targets and an investor datasheet are posted to Adobe’s investor relations website in advance of the conference call for reference. A reconciliation between GAAP and non-GAAP earnings results and financial targets is also provided on the website.
Forward-Looking Statements Disclosure
This press release contains forward-looking statements, including those related to customer success, product innovation, business momentum, our addressable market, revenue, annualized recurring revenue, non-operating other expense, tax rate on a GAAP and non-GAAP basis, earnings per share on a GAAP and non-GAAP basis, and share count, all of which involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: failure to develop, acquire, market and offer products and services that meet customer requirements, failure to compete effectively, introduction of new technology, complex sales cycles, risks related to the timing of revenue recognition from our subscription offerings, fluctuations in subscription renewal rates, potential interruptions or delays in hosted services provided by us or third parties, risks associated with cyber-attacks, information security and privacy, failure to realize the anticipated benefits of past or future acquisitions, changes in accounting principles and tax regulations, uncertainty in the financial markets and economic conditions in the countries where we operate, and other various risks associated with being a multinational corporation. For a discussion of these and other risks and uncertainties, please refer to Adobe’s Annual Report on Form 10-K for our fiscal year 2017 ended Dec. 1, 2017, and Adobe's Quarterly Reports on Form 10-Q issued in fiscal year 2018.
The financial information set forth in this press release reflects estimates based on information available at this time. These amounts could differ from actual reported amounts stated in Adobe’s Quarterly Report on Form 10-Q for our quarter ended March 2, 2018, which Adobe expects to file in March 2018.
Adobe assumes no obligation to, and does not currently intend to, update these forward-looking statements.
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