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Feb 28, 2020
Adobe Q1 2020 Earnings Report
Adobe achieved a record quarterly revenue and reached its first $3 billion quarter.
Key Takeaways
Adobe reported record quarterly revenue of $3.09 billion, representing 19 percent year-over-year growth. Diluted earnings per share was $1.96 on a GAAP basis, and $2.27 on a non-GAAP basis. Digital Media segment revenue was $2.17 billion, a 22 percent year-over-year growth.
Adobe achieved record quarterly revenue of $3.09 billion, a 19 percent year-over-year growth.
Digital Media segment revenue was $2.17 billion, representing a 22 percent year-over-year growth.
Creative revenue grew to $1.82 billion and Document Cloud revenue was $351 million.
Digital Media Annualized Recurring Revenue (“ARR”) grew to $8.73 billion exiting the quarter, a quarter-over-quarter increase of $400 million.
Adobe
Adobe
Adobe Revenue by Segment
Revenue by Segment
Digital Media Revenue
CapyFin.comDigital Experience Revenue
CapyFin.com Forward Guidance
Adobe is providing second quarter financial targets that factor the expected impact of the global uncertainty caused by the COVID-19 situation based on the latest data and information available.
Positive Outlook
- Total revenue approximately $3.175 billion
- Digital Media segment revenue approximately 19 percent year-over-year growth
- Digital Media annualized recurring revenue (ARR) approximately $385 million of net new ARR
- Digital Experience segment revenue approximately 12 percent year-over-year growth
- Non-GAAP: ~10 percent
Challenges Ahead
- Enterprises deferring bookings decisions, delaying consulting services implementations and reducing marketing spend
- Consumers reducing spending in countries more adversely impacted by the COVID-19 situation
- Software license revenue driven by channel partners
- Tax rate GAAP: ~(10) percent
- Earnings per share GAAP: ~$2.10
Revenue & Expenses
Visualization of income flow from segment revenue to net income