Sep 03, 2021

Adobe Q3 2021 Earnings Report

Adobe's Q3 2021 revenue reached a record $3.94 billion, representing a 22% year-over-year growth.

Key Takeaways

Adobe achieved record revenue of $3.94 billion in Q3 2021, a 22% increase year-over-year. Digital Media segment revenue grew by 23%, while Digital Experience segment revenue increased by 26%. The company's GAAP EPS was $2.52, and non-GAAP EPS was $3.11.

Adobe achieved record revenue of $3.94 billion, representing 22% year-over-year growth.

GAAP diluted earnings per share was $2.52, representing 28% year-over-year growth, and non-GAAP diluted earnings per share was $3.11, representing 21% year-over-year growth.

Digital Media segment revenue was $2.87 billion, a 23% year-over-year increase, with Creative revenue growing to $2.37 billion and Document Cloud revenue to $493 million.

Digital Media Annualized Recurring Revenue (ARR) increased $455 million quarter over quarter to $11.67 billion.

Total Revenue
$3.94B
Previous year: $3.23B
+22.0%
EPS
$3.11
Previous year: $2.57
+21.0%
Digital Media ARR
$11.7B
Previous year: $9.63B
+21.2%
Remaining Performance Obligations
$12.6B
Previous year: $10.3B
+22.1%
Gross Profit
$3.47B
Previous year: $2.8B
+23.9%
Cash and Equivalents
$4.62B
Previous year: $3.77B
+22.7%
Free Cash Flow
$1.31B
Previous year: $1.31B
-0.1%
Total Assets
$26.1B
Previous year: $22.4B
+16.6%

Adobe

Adobe

Adobe Revenue by Segment

Forward Guidance

Adobe is providing fourth quarter financial targets factoring current macroeconomic conditions and expected year-end seasonal strength.

Positive Outlook

  • Total revenue~$4.07 billion
  • Digital Media segment revenue~20 percent year-over-year growth
  • Digital Media annualized recurring revenue (ARR)~$550 million of net new ARR
  • Digital Experience segment revenue~22 percent year-over-year growth
  • Digital Experience subscription revenue~26 percent year-over-year growth

Revenue & Expenses

Visualization of income flow from segment revenue to net income