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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.
Revenue by Segment
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%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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