Jun 04, 2021

Adobe Q2 2021 Earnings Report

Adobe's second quarter of fiscal year 2021 resulted in revenue growth of 23% year-over-year, driving record cash flows from operations of $1.99 billion.

Key Takeaways

Adobe's Q2 2021 was strong, with a 23% year-over-year revenue growth, reaching $3.84 billion. The company's Digital Media segment, including Creative and Document Cloud, drove significant growth. Record cash flows from operations reached $1.99 billion.

Adobe achieved quarterly revenue of $3.84 billion, representing 23 percent year-over-year growth.

Digital Media segment revenue was $2.79 billion, a 25 percent year-over-year growth.

Digital Media Annualized Recurring Revenue (ARR) increased $518 million quarter-over-quarter to $11.21 billion.

Cash flows from operations were a record $1.99 billion.

Total Revenue
$3.84B
Previous year: $3.13B
+22.6%
EPS
$3.03
Previous year: $2.45
+23.7%
Digital Media ARR
$11.2B
Previous year: $9.17B
+22.2%
Remaining Performance Obligations
$12.2B
Previous year: $9.92B
+23.3%
Gross Profit
$3.39B
Previous year: $2.71B
+25.0%
Cash and Equivalents
$4.25B
Previous year: $3.04B
+39.6%
Free Cash Flow
$1.99B
Previous year: $1.09B
+82.7%
Total Assets
$25.6B
Previous year: $21.6B
+18.4%

Adobe

Adobe

Adobe Revenue by Segment

Forward Guidance

Adobe is providing third quarter financial targets factoring current macroeconomic conditions and expected return of summer seasonality associated with the months of June, July and August.

Positive Outlook

  • Total revenue ~$3.88 billion
  • Digital Media segment revenue~22 percent year-over-year growth
  • Digital Media annualized recurring revenue (ARR)~$440 million of net new ARR
  • Digital Experience segment revenue~21 percent year-over-year growth
  • Digital Experience subscription revenue~25 percent year-over-year growth

Revenue & Expenses

Visualization of income flow from segment revenue to net income