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Dec 02, 2022
Adobe Q4 2022 Earnings Report
Adobe's Q4 2022 results showed record revenue and strong digital media performance.
Key Takeaways
Adobe reported record Q4 revenue of $4.53 billion, a 10% year-over-year increase, with strong performance in Digital Media and Digital Experience segments. The company's GAAP EPS was $2.53 and non-GAAP EPS was $3.60. Record cash flows from operations reached $2.33 billion.
Adobe achieved revenue of $4.53 billion, representing 10% year-over-year growth.
Digital Media segment revenue was $3.30 billion, a 10% year-over-year increase.
Net new Digital Media ARR was $576 million, with Digital Media ARR exiting at $13.97 billion.
GAAP operating income was $1.51 billion and GAAP net income was $1.18 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 2023 and Q1 targets, which do not reflect the planned acquisition of Figma. These targets factor in current expectations for the macroeconomic and foreign exchange environments.
Positive Outlook
- Total revenue is expected to be $19.1 billion to $19.3 billion.
- Digital Media net new ARR is expected to be approximately $1.65 billion.
- Digital Media segment revenue is expected to be $13.9 billion to $14.0 billion.
- Digital Experience segment revenue is expected to be $4.925 billion to $5.025 billion.
- Digital Experience subscription revenue is expected to be $4.375 billion to $4.425 billion.
Challenges Ahead
- Changes to foreign exchange rates have resulted in a $712 million downward revaluation to Adobe’s total Digital Media ARR balance.
- Foreign exchange rates are expected to result in an approximately four percent headwind to total revenue year-over-year growth rates in fiscal year 2023.
- First quarter fiscal year 2023 total revenue is expected to be $4.60 billion to $4.64 billion.
- First quarter fiscal year 2023 Digital Media net new ARR is expected to be approximately $375 million.
- First quarter fiscal year 2023 Digital Media segment revenue is expected to be $3.350 billion to $3.375 billion.
Revenue & Expenses
Visualization of income flow from segment revenue to net income