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Adobe
🇺🇸 NASDAQ:ADBE
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Dec 03, 2021

Adobe Q4 2021 Earnings Report

Adobe's Q4 2021 earnings were reported, showcasing record revenue and growth in key segments.

Key Takeaways

Adobe reported record Q4 revenue of $4.11 billion, a 20% year-over-year increase, with significant contributions from Digital Media and Digital Experience segments. The company's strong performance led to GAAP EPS of $2.57 and non-GAAP EPS of $3.20. Adobe exceeded $2 billion in operating cash flows for the quarter.

Adobe achieved record revenue of $4.11 billion, representing 20% year-over-year growth.

Digital Media segment revenue reached $3.01 billion, a 21% year-over-year increase, driven by growth in Creative and Document Cloud revenues.

Digital Experience segment revenue was $1.01 billion, a 23% year-over-year increase, with subscription revenue growing by 27%.

The company's Remaining Performance Obligations (RPO) exiting the quarter were $13.99 billion, representing a 23% year-over-year growth.

Total Revenue
$4.11B
Previous year: $3.42B
+20.0%
EPS
$3.2
Previous year: $2.81
+13.9%
Digital Media ARR
$12.2B
Previous year: $10.2B
+20.2%
Remaining Performance Obligations
$14B
Previous year: $11.3B
+23.4%
Gross Profit
$3.6B
Previous year: $3B
+20.3%
Cash and Equivalents
$3.84B
Previous year: $4.48B
-14.2%
Free Cash Flow
$2.05B
Previous year: $1.68B
+22.0%
Total Assets
$27.2B
Previous year: $24.3B
+12.2%

Adobe

Adobe

Adobe Revenue by Segment

Forward Guidance

Adobe provided financial targets for fiscal year 2022 and the first quarter of fiscal year 2022, factoring in the strengthening of the U.S. Dollar and the return to a 13-week first quarter and a 52-week fiscal year.

Positive Outlook

  • Total revenue target of approximately $17.90 billion for fiscal year 2022.
  • Digital Media annualized recurring revenue (ARR) target of approximately $1.90 billion of net new ARR for fiscal year 2022.
  • Targeting approximately $4.23 billion in total revenue for the first quarter of fiscal year 2022.
  • Digital Media annualized recurring revenue (ARR) target of approximately $400 million of net new ARR for the first quarter of fiscal year 2022.
  • Fiscal year 2022 non-GAAP diluted earnings per share target of approximately $13.70.

Challenges Ahead

  • The strengthening of the U.S. Dollar against foreign currencies.
  • Return to a 13-week first quarter and a 52-week fiscal year from fiscal 2021, which included an extra week in Q1.
  • GAAP earnings per share target of ~$10.25 for fiscal year 2022.
  • GAAP earnings per share target of ~$2.63 for the first quarter of fiscal year 2022.
  • Non-GAAP effective income tax rate target of 17.0% for fiscal year 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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