Adobe Reports Record Quarterly Revenue

SAN JOSE — Software maker Adobe reported record financial results for its first quarter fiscal year 2019 ended March 1, 2019.

Q1 FY2019 Financial Highlights 

  • Adobe achieved quarterly revenue of $2.60 billion in its first quarter of fiscal year 2019.
  • Digital Media segment revenue was $1.78 billion, with Creative revenue growing to $1.49 billion and Document Cloud achieving record revenue of $282 million. Digital Media Annualized Recurring Revenue (“ARR”) grew to $7.07 billion exiting the quarter, a quarter-over-quarter increase of $357 million. Creative ARR grew to $6.21 billion, and Document Cloud ARR grew to $856 million.
  • Digital Experience segment revenue was a record $743 million.
  • GAAP operating income in the first quarter was $695 million, and non-GAAP operating income was $985 million. GAAP net income was $674 million, and non-GAAP net income was $844 million.
  • Cash flow from operations was $1.01 billion, and deferred revenue grew to $3.22 billion exiting the quarter.
  • Adobe repurchased approximately 2.1 million shares during the quarter.

“Adobe is fueling the creative economy, driving the paper-to-digital revolution and enabling businesses to transform through our leadership in customer experience management,” said Shantanu Narayen, president and CEO, Adobe. “Our results in Q1 reflect continued momentum across Adobe Creative Cloud, Document Cloud and Experience Cloud.”

“We’re off to a strong start in fiscal 2019, with record revenue, strong earnings and more than $1 billion of operating cash flow in our first quarter,” said John Murphy, executive vice president and CFO, Adobe.

Adobe Updates Fiscal Year 2019 Financial Targets Based on ASC 606

Adobe provided annual fiscal year 2019 financial targets on Dec. 13, 2018, based on ASC 605. The company is today updating these targets to be based on ASC 606, and to reflect first quarter reported results.

Adobe total fiscal year 2019 revenue ~$11.150 billion
Digital Media segment revenue ~20% year/year growth
Digital Experience segment revenue ~34% year/year growth
Net new Digital Media annualized recurring revenue (“ARR”) ~$1.500 billion
Digital Experience annual subscription bookings1 ~25% year/year growth
GAAP tax rate ~10%
Non-GAAP tax rate ~11%
GAAP EPS ~$5.59
Non-GAAP EPS ~$7.80

1 Includes annualized subscription value of SaaS, managed service and term offerings under contract for Analytics Cloud, Marketing Cloud and Magento Commerce Cloud