Mar 04, 2022

Adobe Q1 2022 Earnings Report

Adobe achieved record Q1 revenue as Creative Cloud, Document Cloud and Experience Cloud continue to be pivotal in driving the digital economy.

Key Takeaways

Adobe achieved record revenue of $4.26 billion in Q1 fiscal year 2022, representing 9% year-over-year growth. Diluted earnings per share was $2.66 on a GAAP basis and $3.37 on a non-GAAP basis.

Adobe achieved record revenue of $4.26 billion in Q1 fiscal year 2022.

Digital Media segment revenue was $3.11 billion, representing 9% year-over-year growth.

Digital Media Annualized Recurring Revenue (ARR) increased $418 million quarter over quarter to $12.57 billion exiting the quarter.

GAAP operating income in the first quarter was $1.58 billion, and GAAP net income was $1.27 billion.

Total Revenue
$4.26B
Previous year: $3.91B
+9.1%
EPS
$3.37
Previous year: $3.14
+7.3%
Digital Media ARR
$12.6B
Previous year: $10.7B
+17.6%
Remaining Performance Obligations
$13.8B
Previous year: $11.6B
+19.1%
Gross Profit
$3.75B
Previous year: $3.46B
+8.4%
Cash and Equivalents
$2.74B
Previous year: $3.45B
-20.7%
Free Cash Flow
$1.67B
Previous year: $1.71B
-2.6%
Total Assets
$26B
Previous year: $25B
+4.0%

Adobe

Adobe

Adobe Revenue by Segment

Forward Guidance

Adobe’s second quarter fiscal year 2022 targets factor in current macroeconomic and geopolitical conditions.

Positive Outlook

  • Total revenue ~$4.34 billion
  • Digital Media annualized recurring revenue (ARR) ~$440 million of net new ARR
  • Digital Media segment revenue (Y/Y growth) ~13%
  • Digital Experience segment revenue (Y/Y growth) ~15%
  • Digital Experience subscription revenue (Y/Y growth) ~17%

Revenue & Expenses

Visualization of income flow from segment revenue to net income