Adobe Document Cloud Achieves Year-Over-Year Growth of 22 Percent
SAN JOSE, Calif.–(BUSINESS WIRE)–Adobe (Nasdaq:ADBE) today reported strong financial results for its second quarter fiscal year 2018 ended June 1, 2018.
- Adobe achieved record quarterly revenue of $2.20 billion in its second quarter of fiscal year 2018, which represents 24 percent year-over-year revenue growth.
- Diluted earnings per share was $1.33 on a GAAP-basis, and $1.66 on a non-GAAP basis. A reconciliation between GAAP and non-GAAP results is provided at the end of this press release and on Adobe’s website.
- Digital Media segment revenue was $1.55 billion, with Creative revenue growing to $1.30 billion and Document Cloud achieving record revenue of $243 million, which represents 22 percent year-over-year growth.
- Digital Media Annualized Recurring Revenue (“ARR”) grew to $6.06 billion exiting the quarter, a quarter-over-quarter increase of $343 million. Creative ARR grew to $5.37 billion, and Document Cloud ARR grew to $694 million.
- Digital Experience segment revenue was $586 million, which represents 18 percent year-over-year growth.
- Operating income grew 39 percent and net income grew 77 percent year-over-year on a GAAP-basis; operating income grew 33 percent and net income grew 62 percent year-over-year on a non-GAAP basis.
- Cash flow from operations was $976 million, and deferred revenue grew 27 percent year-over-year to approximately $2.63 billion.
- Adobe repurchased approximately 2.6 million shares during the quarter, returning $589 million of cash to stockholders.
“Adobe delivers all the capabilities to enable transformative digital experiences, including content creation and management, predictive analytics and commerce,” said Shantanu Narayen, president and CEO, Adobe. “Our record results in Q2 reflect continued execution against this significant opportunity where Adobe is the clear market leader.”
“Adobe delivered record revenue with strong earnings and cash flow, and we expect our momentum to continue in the second half of fiscal 2018,” said John Murphy, executive vice president and CFO, Adobe.
Adobe is changing the world through digital experiences. For more information, visit www.adobe.com.
© 2018 Adobe Systems Incorporated. All rights reserved. Adobe, Adobe Document Cloud and the Adobe logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners.
Condensed Consolidated Statements of Income
(In thousands, except per share data; unaudited)
|Three Months Ended||Six Months Ended|
|Services and support||121,236||116,955||235,217||231,360|
|Cost of revenue:|
|Services and support||84,210||81,138||165,550||162,961|
|Total cost of revenue||281,344||239,360||540,246||476,697|
|Research and development||374,128||299,401||722,897||584,478|
|Sales and marketing||646,215||553,098||1,227,172||1,073,395|
|General and administrative||178,040||156,929||348,480||307,737|
|Amortization of purchased intangibles||17,149||19,320||34,295||38,448|
|Total operating expenses||1,215,532||1,028,748||2,332,844||2,004,058|
|Non-operating income (expense):|
|Interest and other income (expense), net||11,599||5,154||28,271||12,360|
|Investment gains (losses), net||1,079||1,729||4,075||4,286|
|Total non-operating income (expense), net||(7,685||)||(11,464||)||(7,916||)||(19,831||)|
|Income before income taxes||690,799||492,618||1,393,301||953,250|
|Provision for income taxes||27,632||118,228||147,058||180,414|
|Basic net income per share||$||1.35||$||0.76||$||2.53||$||1.56|
|Shares used to compute basic net income per share||491,914||494,371||491,993||494,492|
|Diluted net income per share||$||1.33||$||0.75||$||2.50||$||1.54|
|Shares used to compute diluted net income per share||498,252||500,351||499,166||501,032|