You guessed it: another record-breaking Adobe financial quarter

2 years ago
Categories: Adobe
Tags: Adobe reports record revenue, financial results

Today Adobe announced another record revenue of $4.66 billion for their Q1 fiscal 2023 financial results, representing a 13% YoY growth (see previous Adobe's record revenue reports):

Adobe Reports Record Revenue in Q1 Fiscal 2023

Company raises Digital Media net new ARR and EPS annual targets

SAN JOSE, Calif.--(BUSINESS WIRE)-- Adobe (Nasdaq:ADBE) today reported financial results for its first quarter fiscal year 2023 ended March 3, 2023.

“Adobe drove record Q1 revenue and we are raising our annual targets based on the tremendous market opportunity and continued confidence in our execution,” said Shantanu Narayen, chairman and CEO, Adobe. “Creative Cloud, Document Cloud and Experience Cloud are mission-critical in fueling the global digital economy.”

“Our strong engine of innovation combined with world-class operational rigor drove profitable growth in Q1, setting us up to deliver another strong fiscal year,” said Dan Durn, executive vice president and CFO, Adobe. “Adobe is better positioned today than we’ve ever been to serve our customers globally.”

First Quarter Fiscal Year 2023 Financial Highlights

Adobe achieved revenue of $4.66 billion in its first quarter of fiscal year 2023, which represents 9 percent year-over-year growth or 13 percent in constant currency. Diluted earnings per share was $2.71 on a GAAP basis and $3.80 on a non-GAAP basis.
GAAP operating income in the first quarter was $1.59 billion and non-GAAP operating income was $2.13 billion. GAAP net income was $1.25 billion and non-GAAP net income was $1.75 billion.
Cash flows from operations were $1.69 billion.
Remaining Performance Obligations (“RPO”) exiting the quarter were $15.21 billion.
Adobe repurchased approximately 5.0 million shares during the quarter.

First Quarter Fiscal Year 2023 Business Segment Highlights

Digital Media segment revenue was $3.40 billion, which represents 9 percent year-over-year growth or 14 percent in constant currency. Creative revenue grew to $2.76 billion, representing 8 percent year-over-year growth or 13 percent in constant currency. Document Cloud revenue was $634 million, representing 13 percent year-over-year growth or 16 percent in constant currency.
Net new Digital Media Annualized Recurring Revenue (“ARR”) was $410 million, exiting the quarter with Digital Media ARR of $13.67 billion. Creative ARR grew to $11.28 billion and Document Cloud ARR grew to $2.39 billion.
Digital Experience segment revenue was $1.18 billion, representing 11 percent year-over-year growth or 14 percent in constant currency. Digital Experience subscription revenue was $1.04 billion, representing 12 percent year-over-year growth or 14 percent in constant currency.

Financial Targets

Adobe is providing second quarter targets and updated fiscal year 2023 targets for Digital Media net new ARR and earnings per share. These targets factor in current expectations for the macroeconomic and foreign exchange environments.

The following table summarizes Adobe’s updated fiscal year 2023 targets:

Digital Media net new ARR		~$1.70 billion
Earnings per share¹		GAAP: $10.85 to $11.15		Non-GAAP: $15.30 to $15.60

The following table summarizes Adobe’s second quarter fiscal year 2023 targets:

Total revenue	$4.75 billion to $4.78 billion
Digital Media net new ARR	~$420 million
Digital Media segment revenue	$3.45 billion to $3.47 billion
Digital Experience segment revenue	$1.21 billion to $1.23 billion
Digital Experience subscription revenue	$1.06 billion to $1.08 billion
Tax rate	GAAP: ~21.5%	Non-GAAP: ~18.5%
Earnings per share¹	GAAP: $2.65 to $2.70	Non-GAAP: $3.75 to $3.80
¹ Targets assume share count of ~458 million for second quarter fiscal year 2023 and ~456 million for fiscal year 2023.

The full press release can be found here.