Jun 02, 2023

Adobe Q2 2023 Earnings Report

Adobe's Q2 2023 revenue reached a record high, demonstrating strong demand across Creative Cloud, Document Cloud, and Experience Cloud.

Key Takeaways

Adobe reported record revenue in Q2 fiscal year 2023, driven by strong performance across its Digital Media and Digital Experience segments. The company raised its annual targets for revenue, EPS, and Digital Media net new ARR.

Adobe achieved revenue of $4.82 billion, a 10% year-over-year growth.

GAAP diluted earnings per share was $2.82, and non-GAAP diluted earnings per share was $3.91.

Net new Digital Media ARR was $470 million, with Digital Media ARR exiting the quarter at $14.14 billion.

Adobe is providing third quarter targets and updated fiscal year 2023 targets.

Total Revenue
$4.82B
Previous year: $4.39B
+9.8%
EPS
$3.91
Previous year: $3.35
+16.7%
Digital Media ARR
$14.1B
Previous year: $13B
+9.2%
Remaining Performance Obligations
$15.2B
Previous year: $13.8B
+10.1%
Gross Profit
$4.24B
Previous year: $3.85B
+10.3%
Cash and Equivalents
$5.46B
Previous year: $3.37B
+62.1%
Free Cash Flow
$2.02B
Previous year: $1.91B
+5.4%
Total Assets
$27.8B
Previous year: $26.3B
+5.7%

Adobe

Adobe

Adobe Revenue by Segment

Forward Guidance

Adobe is providing third quarter targets and updated fiscal year 2023 targets, factoring in current expectations for the macroeconomic environment and summer seasonality.

Positive Outlook

  • Total revenue is expected to be between $4.83 billion and $4.87 billion for Q3 2023.
  • Digital Media net new ARR is expected to be approximately $410 million for Q3 2023.
  • Digital Media segment revenue is projected to be between $3.55 billion and $3.57 billion for Q3 2023.
  • Digital Experience segment revenue is expected to range from $1.21 billion to $1.23 billion for Q3 2023.
  • Non-GAAP EPS is expected to be between $3.95 and $4.00 for Q3 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income