Adobe Creative achieved record revenue exceeding $1 billion in Q2

Adobe started significantly increasing their profit back in 2015 when they began switching customers to the Adobe Creative Cloud subscription.

Adobe just reported that their Creative revenue hit a new record and exceeded $1 billion in Q2 (back in December 2016 Adobe also reported record revenue and net income):

  • Adobe achieved record quarterly revenue of $1.77 billion in its second quarter of fiscal year 2017.
  • Diluted earnings per share was $0.75 on a GAAP-basis, and $1.02 on a non-GAAP basis.
  • Digital Media segment revenue was $1.21 billion, with Creative revenue growing to a record $1.01 billion.
  • Strong Creative Cloud and Document Cloud adoption and retention drove Digital Media Annualized Recurring Revenue (“ARR”) to $4.56 billion exiting the quarter, a quarter-over-quarter increase of $312 million.
  • Adobe Experience Cloud achieved record revenue of $495 million, which represents 29 percent year-over-year growth.
  • Operating income grew 46 percent and net income grew 53 percent year-over-year on a GAAP-basis; operating income grew 42 percent and net income grew 43 percent year-over-year on a non-GAAP basis.
  • Cash flow from operations was $645 million, and deferred revenue grew to approximately $2.07 billion.
  • The company repurchased approximately 2 million shares during the quarter, returning $266 million of cash to stockholders.
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  • Alexis

    Avalanche of hate in 3, 2, 1…

    • silmasan


    • Exactly. If you don’t like what they are doing, don’t participate.

      • Caleb Berg

        Absolutely and entirely false. No one gets to own the software anymore at all, and the accumulated cost is even more than it was! But they bought up so much of the market the choice for artists to NOT “participate” is extremely difficult and limited.

        So we pay… we give, and we give…

        • The “not affordable” for many has now become very easy to own. The numbers prove it. And if you” cannot afford to pay subscription” means you anyway wouldn’t have been afford to buy out right. And it’s not that adobe used to sell once and provided updates for lifetime. In say two years time you had to shell out another significant amount for new features . And considering the current trend, It is mandatory to have latest or else you can make do with any simple software you can otherwise buy. And like I said before this cloud model will become a problem only if adobe thinks it has reached cloud nine and starts charging unreasonably. Until then it is a win win situation for adobe as well as us.

          • Caleb Berg

            The “easy to own” is completely false. You can not own it anymore at all. Only rent it. People or companies who used it before could choose to use without upgrading for years and eventually buy again, with the FREEDOM OF CHOICE when to re-purchase an update. No more! You are forced into rental payments that they try hard to ever let you cancel. In the beginning I thought it was great. But now look at that record profit and how much we’ve paid the last few years. CORPORATE GREED!!

          • So your prime grudge here is “adobe making a lot of money”? That’s harsh. For me, it just shows that way too many more people could afford to use CC that when it was “buy only” option. Adobe has also eliminated the piracy problem with this to a large extent. But I agree to one thing with you. They should also have given us a choice of buying the software. That way anyone who wanted to buy outright could also have been happy.

  • Sebastien

    But they will loose my monthly subscription if they do not release a new major version of Lightroom with improved performance and new raw engine, especially for Fuji RAF files.

  • GearHeavy

    Some of that money used to be mine.

  • fanboy fagz

    and I am not ONE of those (suckers) that helped that record revenue.

    • Max

      Yup me neither. Screw renting software.

  • photo570

    Mother F$#&ers!!!!!!!!!!!!!

  • Caleb Berg

    Yeah. Because they became a big f___ing rip-off, charging huge endless fees for software, regardless of customer’s usage or needs for only limited parts. Then made it nearly impossible for customers to stop the service or discontinue the fees.
    ADOBE = pillaging of the art world.

  • Michiel Schierbeek

    With these kind of profits you know you get screwed….

  • Kyle

    It’s $50/mo. Don’t eat out 3 or 4 days and it’s covered. Cancel cable tv. Mow your own grass one time. Lots of ways to get $50. And if you don’t need all apps. Pay the $10 for the photo bundle. Very reasonable and fair.

    Technology is really advancing too rapidly to make the old idea of Buy and wait 2-3 years before upgrading feasable.

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