Digital Media ARR Exceeds $13 Billion Exiting the Quarter;
Adobe Announces Acquisition of Figma
Adobe (Nasdaq:ADBE) today reported financial results for its
third quarter fiscal year 2022 ended Sept. 2, 2022.
“Fueled by our groundbreaking technology, track record of
creating and leading categories and consistent execution, Adobe
delivered another record quarter,” said Shantanu Narayen, chairman
and CEO, Adobe. “With the announcement of our intent to acquire
Figma, we believe we have a unique opportunity to usher in a new
era of collaborative creativity.”
“Adobe achieved record revenue and strong profitability in the
quarter, demonstrating that our products are mission-critical to
individuals, small businesses and the world’s largest enterprises,”
said Dan Durn, executive vice president and CFO, Adobe. “Our
operational rigor combined with our strong engine of innovation are
driving growth across our platforms and will fuel future growth as
the digital economy continues to expand.”
Third Quarter Fiscal Year 2022 Financial Highlights
- Adobe achieved record revenue of $4.43 billion in its third
quarter of fiscal year 2022, which represents 13 percent
year-over-year growth or 15 percent in constant currency. Diluted
earnings per share was $2.42 on a GAAP basis and $3.40 on a
non-GAAP basis.
- GAAP operating income in the third quarter was $1.48 billion,
and non-GAAP operating income was $1.96 billion. GAAP net income
was $1.14 billion, and non-GAAP net income was $1.60 billion.
- Cash flows from operations were $1.70 billion.
- Remaining Performance Obligations (“RPO”) exiting the quarter
were $14.11 billion.
- Adobe repurchased approximately 5.1 million shares during the
quarter.
Third Quarter Fiscal Year 2022 Business Segment
Highlights
- Digital Media segment revenue was $3.23 billion, which
represents 13 percent year-over-year growth or 16 percent in
constant currency. Creative revenue grew to $2.63 billion,
representing 11 percent year-over-year growth or 14 percent in
constant currency. Document Cloud revenue was $607 million,
representing 23 percent year-over-year growth or 25 percent in
constant currency.
- Net New Digital Media Annualized Recurring Revenue (“ARR”) was
$449 million, exiting the quarter with Digital Media ARR of $13.40
billion. Creative ARR grew to $11.15 billion and Document Cloud ARR
grew to $2.25 billion.
- Digital Experience segment revenue was $1.12 billion,
representing 14 percent year-over-year growth or 15 percent in
constant currency. Digital Experience subscription revenue was $981
million, representing 14 percent year-over-year growth or 15
percent in constant currency.
Financial Targets
Adobe is providing fourth quarter targets that factor in the
following:
- The overall macroeconomic environment;
- FX headwinds, as the U.S. Dollar has continued to strengthen
against foreign currencies; and
- Typical year-end seasonal strength in demand for our
offerings.
The following table summarizes Adobe’s fourth quarter fiscal
year 2022 targets:
Total revenue
~$4.52 billion
Digital Media annualized
recurring revenue (ARR)
~$550 million of net new ARR
Digital Media segment revenue
(Y/Y growth)
~10%
~14% (constant currency)
Digital Experience segment
revenue (Y/Y growth)
~13%
~15% (constant currency)
Digital Experience subscription
revenue (Y/Y growth)
~13%
~15% (constant currency)
Tax rate
GAAP: ~23.0%
Non-GAAP: ~17.5%
Earnings per share1
GAAP: ~$2.44
Non-GAAP: ~$3.50
1 Targets assume share count of ~467
million for the fourth quarter fiscal year 2022.
Adobe to Host Conference Call
Adobe will host its third quarter fiscal year 2022 earnings
conference call today at 7:00 a.m. Pacific Time. Earnings
documents, including Adobe management’s prepared conference call
remarks with slides and an investor datasheet are posted to Adobe’s
investor relations website in advance of the conference call for
reference. To access the earnings conference call, log on to the
investor relations website www.adobe.com/ADBE or call 1 (800)
289-0720; Conference ID 2608470.
Forward-Looking Statements, Non-GAAP and Other
Disclosures
This press release contains forward-looking statements,
including those related to business momentum, the effects of the
COVID-19 pandemic on our business and results of operations, our
market opportunity, market trends, current macroeconomic
conditions, fluctuations in foreign currency exchange rates,
strategic investments, customer success, revenue, operating margin,
seasonality, annualized recurring revenue, 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 compete effectively, failure to develop,
acquire, market and offer products and services that meet customer
requirements; introduction of new technology, information security
and privacy; potential interruptions or delays in hosted services
provided by us or third parties; geopolitical and macroeconomic
conditions; the Russia-Ukraine war; the economic impact of the
COVID-19 pandemic; risks associated with cyber-attacks; complex
sales cycles; risks related to the timing of revenue recognition
from our subscription offerings; fluctuations in subscription
renewal rates; failure to realize the anticipated benefits of past
or future acquisitions; failure to effectively manage critical
strategic third-party business relationships; 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 2021 ended Dec. 3, 2021, and Adobe's Quarterly
Reports on Form 10-Q issued in fiscal year 2022.
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 fiscal quarter ended
Sept. 2, 2022, which Adobe expects to file in Sept. 2022. Adobe
assumes no obligation to, and does not currently intend to, update
these forward-looking statements.
A reconciliation between GAAP and non-GAAP earnings results and
financial targets is provided at the end of this press release and
on Adobe’s investor relations website.
About Adobe
Adobe is changing the world through digital experiences. For
more information, visit www.adobe.com.
©2022 Adobe. All rights reserved. Adobe, Creative Cloud,
Document Cloud and the Adobe logo are either registered trademarks
or trademarks of Adobe (or one of its subsidiaries) in the United
States and/or other countries. All other trademarks are the
property of their respective owners.
Condensed Consolidated Statements of
Income
(In millions, except per share data;
unaudited)
Three Months Ended
Nine Months Ended
September 2, 2022
September 3, 2021
September 2, 2022
September 3, 2021
Revenue:
Subscription
$
4,128
$
3,657
$
12,156
$
10,761
Product
126
119
417
427
Services and other
179
159
508
487
Total revenue
4,433
3,935
13,081
11,675
Cost of revenue:
Subscription
413
344
1,216
996
Product
8
10
27
29
Services and other
125
113
354
333
Total cost of revenue
546
467
1,597
1,358
Gross profit
3,887
3,468
11,484
10,317
Operating expenses:
Research and development
775
651
2,214
1,883
Sales and marketing
1,266
1,068
3,671
3,190
General and administrative
319
265
879
811
Amortization of intangibles
43
43
127
132
Total operating expenses
2,403
2,027
6,891
6,016
Operating income
1,484
1,441
4,593
4,301
Non-operating income
(expense):
Interest expense
(28
)
(27
)
(84
)
(85
)
Investment gains (losses),
net
(6
)
7
(23
)
20
Other income (expense), net
6
(3
)
5
1
Total non-operating income
(expense), net
(28
)
(23
)
(102
)
(64
)
Income before income taxes
1,456
1,418
4,491
4,237
Provision for income taxes
320
206
911
648
Net income
$
1,136
$
1,212
$
3,580
$
3,589
Basic net income per share
$
2.42
$
2.54
$
7.60
$
7.51
Shares used to compute basic net
income per share
469
477
471
478
Diluted net income per share
$
2.42
$
2.52
$
7.57
$
7.45
Shares used to compute diluted
net income per share
469
481
473
481
Condensed Consolidated Balance
Sheets
(In millions; unaudited)
September 2, 2022
December 3, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
3,870
$
3,844
Short-term investments
1,894
1,954
Trade receivables, net of
allowances for doubtful accounts of $24 and $16, respectively
1,723
1,878
Prepaid expenses and other
current assets
1,002
993
Total current assets
8,489
8,669
Property and equipment, net
1,858
1,673
Operating lease right-of-use
assets, net
414
443
Goodwill
12,756
12,668
Other intangibles, net
1,548
1,820
Deferred income taxes
799
1,085
Other assets
880
883
Total assets
$
26,744
$
27,241
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Trade payables
$
316
$
312
Accrued expenses
1,629
1,736
Debt
500
—
Deferred revenue
4,829
4,733
Income taxes payable
76
54
Operating lease liabilities
88
97
Total current liabilities
7,438
6,932
Long-term liabilities:
Debt
3,627
4,123
Deferred revenue
114
145
Income taxes payable
510
534
Deferred income taxes
3
5
Operating lease liabilities
426
453
Other liabilities
253
252
Total liabilities
12,371
12,444
Stockholders’ equity:
Preferred stock
—
—
Common stock
—
—
Additional paid-in-capital
9,548
8,428
Retained earnings
27,158
23,905
Accumulated other comprehensive
income (loss)
(224
)
(137
)
Treasury stock, at cost
(22,109
)
(17,399
)
Total stockholders’ equity
14,373
14,797
Total liabilities and
stockholders’ equity
$
26,744
$
27,241
Condensed Consolidated Statements of
Cash Flows
(In millions; unaudited)
Three Months Ended
September 2, 2022
September 3, 2021
Cash flows from operating
activities:
Net income
$
1,136
$
1,212
Adjustments to reconcile net
income to net cash provided by operating activities:
Depreciation, amortization and
accretion
216
193
Stock-based compensation
378
280
Unrealized investment (gains)
losses, net
6
(4
)
Other non-cash adjustments
112
(72
)
Changes in deferred revenue
67
102
Changes in other operating assets
and liabilities
(211
)
(296
)
Net cash provided by operating
activities
1,704
1,415
Cash flows from investing
activities:
Purchases, sales and maturities
of short-term investments, net
31
(28
)
Purchases of property and
equipment
(125
)
(95
)
Purchases and sales of long-term
investments, intangibles and other assets, net
(9
)
(10
)
Net cash used for investing
activities
(103
)
(133
)
Cash flows from financing activities:
Repurchases of common stock
(1,200
)
(1,000
)
Proceeds from treasury stock
re-issuances, net of taxes paid related to net share settlement of
equity awards
103
81
Other financing activities,
net
37
20
Net cash used for financing
activities
(1,060
)
(899
)
Effect of exchange rate changes
on cash and cash equivalents
(36
)
(10
)
Net change in cash and cash
equivalents
505
373
Cash and cash equivalents at
beginning of period
3,365
4,250
Cash and cash equivalents at end
of period
$
3,870
$
4,623
Non-GAAP Results
The following table shows Adobe’s third quarter fiscal year 2022
GAAP revenue growth rates reconciled to adjusted revenue growth
rates included in this release.
Third Quarter Fiscal
2022
Total revenue
Digital Media segment
revenue
Creative Cloud revenue
Document Cloud revenue
Digital Experience segment
revenue
Digital Experience
subscription revenue
(Y/Y growth)
(Y/Y growth)
(Y/Y growth)
(Y/Y growth)
(Y/Y growth)
(Y/Y growth)
GAAP revenue growth rates
13
%
13
%
11
%
23
%
14
%
14
%
Constant currency impact
2
3
3
2
1
1
Adjusted revenue growth rates
15
%
16
%
14
%
25
%
15
%
15
%
The following table shows Adobe’s GAAP results reconciled to
non-GAAP results included in this release.
(In millions, except per share data)
Three Months Ended
September 2,
2022
September 3, 2021
June 3,
2022
Operating income:
GAAP operating income
$
1,484
$
1,441
$
1,529
Stock-based and deferred compensation expense
371
287
345
Amortization of intangibles
100
83
100
Non-GAAP operating income
$
1,955
$
1,811
$
1,974
Net income: GAAP net income
$
1,136
$
1,212
$
1,178
Stock-based and deferred compensation expense
371
287
345
Amortization of intangibles
100
83
100
Investment (gains) losses, net
6
(7
)
8
Income tax adjustments
(18
)
(79
)
(46
)
Non-GAAP net income
$
1,595
$
1,496
$
1,585
Diluted net income per share:
GAAP diluted net income per share
$
2.42
$
2.52
$
2.49
Stock-based and deferred compensation expense
0.79
0.6
0.73
Amortization of intangibles
0.21
0.17
0.21
Investment (gains) losses, net
0.01
(0.01
)
0.02
Income tax adjustments
(0.03
)
(0.17
)
(0.1
)
Non-GAAP diluted net income per share
$
3.40
$
3.11
$
3.35
Shares used to compute diluted net income per share
469
481
473
Reconciliation of GAAP to Non-GAAP Financial Targets
The following tables show Adobe's fourth quarter fiscal year
2022 financial targets reconciled to non-GAAP financial targets
included in this release.
Fourth Quarter Fiscal 2022
Digital Media segment
revenue
Digital Experience segment
revenue
Digital Experience
subscription revenue
(Y/Y growth)
(Y/Y growth)
(Y/Y growth)
GAAP target revenue growth
rates
10
%
13
%
13
%
Constant currency impact
4
2
2
Constant currency target revenue
growth rates
14
%
15
%
15
%
(Shares in millions)
Fourth Quarter Fiscal
2022
Diluted net income per share:
GAAP diluted net income per share
$
2.44
Stock-based and deferred compensation expense
0.86
Amortization of intangibles
0.21
Income tax adjustments
(0.01
)
Non-GAAP diluted net income per share
$
3.50
Shares used to compute diluted net income per share
467
Fourth Quarter Fiscal
2022
Effective income tax rate:
GAAP effective income tax rate
23.0
%
Stock-based and deferred compensation expense
(1.4
)
Amortization of intangibles
(0.1
)
Income tax adjustments
(4.0
)
Non-GAAP effective income tax rate
17.50
%
Use of Non-GAAP Financial Information
Adobe continues to provide all information required in
accordance with GAAP, but believes evaluating its ongoing operating
results may not be as useful if an investor is limited to reviewing
only GAAP financial measures. Adobe uses non-GAAP financial
information to evaluate its ongoing operations and for internal
planning and forecasting purposes. Adobe's management does not
itself, nor does it suggest that investors should, consider such
non-GAAP financial measures in isolation from, or as a substitute
for, financial information prepared in accordance with GAAP. Adobe
presents such non-GAAP financial measures in reporting its
financial results to provide investors with an additional tool to
evaluate Adobe's operating results. Adobe believes these non-GAAP
financial measures are useful because they allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision-making. This allows
institutional investors, the analyst community and others to better
understand and evaluate our operating results and future prospects
in the same manner as management.
Adobe's management believes it is useful for itself and
investors to review, as applicable, both GAAP information as well
as non-GAAP measures, which may exclude items such as stock-based
and deferred compensation expenses, amortization of intangibles,
investment gains and losses, the related tax impact of all of these
items, income tax adjustments, and the income tax effect of the
non-GAAP pre-tax adjustments from the provision for income taxes.
Adobe uses these non-GAAP measures in order to assess the
performance of Adobe's business and for planning and forecasting in
subsequent periods. Whenever such a non-GAAP measure is used, Adobe
provides a reconciliation of the non-GAAP financial measure to the
most closely applicable GAAP financial measure. Investors are
encouraged to review the related GAAP financial measures and the
reconciliation of these non-GAAP financial measures to their most
directly comparable GAAP financial measure as detailed above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220915005538/en/
Investor Relations Contact Jonathan Vaas Adobe
ir@adobe.com
Public Relations Contact Ashley Levine Adobe
aslevine@adobe.com
Adobe (NASDAQ:ADBE)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Adobe (NASDAQ:ADBE)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024