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.
