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Nov 27, 2020
Adobe Q4 2020 Earnings Report
Adobe's Q4 2020 revenue performance was record-breaking, amidst an unprecedented macroeconomic environment.
Key Takeaways
Adobe reported record Q4 revenue of $3.42 billion, a 14% year-over-year increase. Diluted earnings per share was $4.64 on a GAAP basis, and $2.81 on a non-GAAP basis. Digital Media ARR grew to $10.18 billion exiting the quarter.
Adobe achieved record quarterly revenue of $3.42 billion, representing 14% year-over-year growth.
Digital Media segment revenue was $2.50 billion, a 20% year-over-year increase.
Digital Media ARR grew to $10.18 billion exiting the quarter, a quarter-over-quarter increase of $548 million.
GAAP operating income was $1.22 billion, and GAAP net income was $2.25 billion.
Revenue by Segment
Forward Guidance
Adobe provided fiscal year 2021 and first quarter 2021 financial targets.
Positive Outlook
- Total revenue ~$15.15 billion
- Digital Media segment revenue ~19 percent year-over-year growth
- Digital Media annualized recurring revenue (ARR) ~$1.75 billion of net new ARR
- Digital Experience segment revenue ~19 percent year-over-year growth
- Digital Experience subscription revenue ~22 percent year-over-year growth
Challenges Ahead
- Tax rate GAAP: ~19 percent
- Non-GAAP: ~17.5 percent
- Share count ~482 million shares
- Earnings per share GAAP: ~$8.57
- Non-GAAP: ~$11.20
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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