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Sep 02, 2022
Adobe Q3 2022 Earnings Report
Adobe achieved record revenue and strong profitability, driven by groundbreaking technology and consistent execution.
Key Takeaways
Adobe reported a record revenue of $4.43 billion in Q3 fiscal year 2022, representing a 13% year-over-year growth. The company's Digital Media ARR exceeded $13 billion exiting the quarter. Adobe also announced the acquisition of Figma.
Adobe achieved record revenue of $4.43 billion, a 13% year-over-year growth.
GAAP diluted earnings per share was $2.42, and non-GAAP diluted earnings per share was $3.40.
Digital Media segment revenue was $3.23 billion, a 13% year-over-year growth.
Net New Digital Media ARR was $449 million, exiting the quarter with Digital Media ARR of $13.40 billion.
Adobe
Adobe
Adobe Revenue by Segment
Revenue by Segment
Digital Media Revenue
CapyFin.comDigital Experience Revenue
CapyFin.com Forward Guidance
Adobe is providing fourth quarter targets that factor in the overall macroeconomic environment, FX headwinds, and typical year-end seasonal strength in demand.
Positive Outlook
- Total revenue target of approximately $4.52 billion.
- Digital Media segment revenue growth between 10% and 14% (constant currency).
- Digital Experience segment revenue growth between 13% and 15% (constant currency).
- Digital Experience subscription revenue growth between 13% and 15% (constant currency).
- Non-GAAP earnings per share target of approximately $3.50.
Challenges Ahead
- Overall macroeconomic environment.
- FX headwinds due to the strengthening U.S. Dollar.
- GAAP tax rate target of approximately 23.0%.
- Non-GAAP tax rate target of approximately 17.5%.
- GAAP diluted net income per share target of ~$2.44
Revenue & Expenses
Visualization of income flow from segment revenue to net income