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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.
Adobe
Adobe
Adobe Revenue by Segment
Revenue by Segment
Digital Media Revenue
CapyFin.comDigital Experience Revenue
CapyFin.com 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