Adobe Q1 2021 Earnings Report
Key Takeaways
Adobe achieved record quarterly revenue of $3.91 billion, representing 26 percent year-over-year growth. Diluted earnings per share was $2.61 on a GAAP basis, and $3.14 on a non-GAAP basis. The company is raising its annual targets based on the strong Q1 results.
Adobe achieved record quarterly revenue of $3.91 billion, a 26% year-over-year increase.
Digital Media segment revenue was $2.86 billion, representing 32% year-over-year growth.
Digital Media ARR increased $435 million quarter-over-quarter to $10.69 billion exiting the quarter.
GAAP operating income was $1.45 billion, and GAAP net income was $1.26 billion.
Adobe
Adobe
Adobe Revenue by Segment
Forward Guidance
Adobe provides second quarter and updated fiscal year 2021 financial targets.
Positive Outlook
- Total revenue target of approximately $3.72 billion for Q2 2021.
- Digital Media segment revenue target of approximately 21 percent year-over-year growth for Q2 2021.
- Digital Media annualized recurring revenue (ARR) target of approximately $450 million of net new ARR for Q2 2021.
- Digital Experience segment revenue target of approximately 18 percent year-over-year growth for Q2 2021.
- Total revenue target of approximately $15.45 billion for fiscal year 2021.
Challenges Ahead
- GAAP tax rate target of approximately 19.5 percent for Q2 2021.
- Non-GAAP tax rate target of approximately 16 percent for Q2 2021.
- Share count of approximately 482 million shares for Q2 2021.
- GAAP tax rate target of approximately 17.5 percent for fiscal year 2021.
- Share count of approximately 481 million shares for fiscal year 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income