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May 29, 2020
Adobe Q2 2020 Earnings Report
Adobe achieved record quarterly revenue driven by strong demand across Creative Cloud and Document Cloud.
Key Takeaways
Adobe reported record quarterly revenue of $3.13 billion, representing 14 percent year-over-year growth. Digital Media segment revenue was $2.23 billion, with Digital Media ARR growing to $9.17 billion. Diluted earnings per share was $2.27 on a GAAP basis, and $2.45 on a non-GAAP basis.
Adobe achieved record quarterly revenue of $3.13 billion, a 14% year-over-year increase.
Digital Media segment revenue reached $2.23 billion, growing 18% year-over-year.
Digital Media ARR grew to $9.17 billion, with a quarter-over-quarter increase of $443 million.
GAAP diluted earnings per share was $2.27, and non-GAAP diluted earnings per share was $2.45.
Adobe
Adobe
Adobe Revenue by Segment
Revenue by Segment
Digital Media Revenue
CapyFin.comDigital Experience Revenue
CapyFin.com Forward Guidance
Adobe provided third quarter financial targets factoring current macroeconomic conditions, continued impacts of the pandemic, typical Q3 summer seasonality and its updated strategy for Advertising Cloud.
Positive Outlook
- Total revenue approximately $3.15 billion
- Digital Media segment revenue approximately 16 percent year-over-year growth
- Digital media annualized recurring revenue (ARR) approximately $340 million of net new ARR
- Digital Experience subscription revenue ~5% year-over-year growth
- Non-GAAP diluted net income per share $2.40
Challenges Ahead
- Digital Experience segment revenue flat year-over-year
- In light of the macroeconomic environment and the strategic shifts for Advertising Cloud, Adobe is withdrawing the annual fiscal 2020 targets provided in December 2019.
- Tax rate GAAP: ~10 percent
- Tax rate Non-GAAP: ~10 percent
- Share count ~485 million shares
Revenue & Expenses
Visualization of income flow from segment revenue to net income