Tue, Jun. 16, 4:34 PM
- With a strong dollar and the rapid shift towards subscription sales from up-front license payments weighing, Adobe (NASDAQ:ADBE) has guided (.pdf) for FQ3 revenue of $1.175B-$1.225B and EPS of $0.45-$0.51, below a consensus of $1.25B and $0.54. Likewise, FY15 (ends Nov. '15) guidance is for revenue of $4.845B and EPS of $2.05, below a consensus of $4.88B and $2.08.
- 639K Creative Cloud subs were added in FQ2, +38% Y/Y and bringing the base to 4.61M. Creative annualized recurring revenue (ARR) rose 13% Q/Q to $2.02B.
- Segment/geographic data: Digital Media (Creative Cloud/Acrobat) revenue +8% Y/Y to $747.5M. Digital Marketing (Marketing Cloud/LiveCycle) +10% to $366.5M. Print/publishing +4% to $48.2M. The Americas accounted for 58% of revenue, EMEA 28%, and Asia-Pac 14%.
- Other data: Document Cloud ARR, boosted by the March launch of the $15/month Document Cloud service, rose 11% Q/Q to $329M. Marketing Cloud (ad tech) revenue rose 15%, and the platform's bookings are still expected to rise 30% in FY15. Subscription growth led the deferred revenue balance to rise 32% Y/Y to $1.23B. Subscriptions now make up 66% of revenue.
- Financials: Operating expenses (non-GAAP) fell by $1.2M Y/Y to $684.9M. On a GAAP basis, R&D spend totaled $208M, sales/marketing $427M, and G&A $130.2M. $200M was spent to buy back 2.6M shares. Adobe ended FQ2 with $3.4B in cash/short-term investments, and $1.9B in debt.
- ADBE -1% AH to $79.15.
- FQ2 results, PR, prepared remarks/slides (.pdf), datasheet (.pdf)
Tue, Jun. 16, 4:04 PM
Mon, Jun. 15, 5:35 PM
Tue, Mar. 17, 4:54 PM
- Adobe (NASDAQ:ADBE) added 517K Creative Cloud subs in FQ1, 28% more than a year ago and bringing the total base to 3.97M. The company had only guided for CC net adds to drop Q/Q from FQ4's 644K (due to seasonality).
- FQ2 guidance is light: Revenue of $1.125B-$1.175B and EPS of $0.41-$0.47, below a consensus of $1.18B and $0.48. Many enterprise tech firms have been dealing with intense forex pressures. CC net adds are still expected to grow Q/Q each of the next 3 quarters.
- Digital Media revenue rose 10% Y/Y to $702.8M; Creative ARR grew by $180M Q/Q to $1.79B, and Document Services (Acrobat/EchoSign) ARR by $37M to $297M ahead of the Document Cloud launch. Marketing Cloud (ad tech) revenue remain strong, rising 17% to $311.5M. LiveCycle/conferencing revenue fell 4% to $45.7M.
- $174M was spent to buy back 2.4M shares. GAAP operating expenses fell 1% Y/Y to $392.7M due to lower sales/marketing spend. Thanks to subscription growth, the deferred revenue balance rose 34% Y/Y to $1.18B.
- Adobe has dropped to $76.50 AH. With shares having gone into earnings near a high of $80.30, expectations were high.
- FQ1 results, PR, datasheet (.pdf), presentation (.pdf)
Tue, Mar. 17, 4:06 PM
Mon, Mar. 16, 5:35 PM
Dec. 11, 2014, 4:49 PM
- Adobe (NASDAQ:ADBE) added 644K Creative Cloud subs in FQ4, growing the total base to 3.45M and yielding 1.146M net adds for the second half of FY14. Guidance was for CC sub growth in the second half to only "slightly exceed" 1M.
- CC sub growth is expected to decline Q/Q in FQ1 (partly due to seasonality), but then increase in each of the following three quarters. Digital media annual recurring revenue (ARR) is expected to follow a similar trend. Adobe aims to end FY15 with 5.9M CC subs (+70% Y/Y).
- Thanks to the shift to CC subscriptions from up-front licenses, standard guidance is light: Adobe expects FQ1 revenue of $1.05B-$1.1B and EPS of $0.34-$0.40 vs. a consensus of $1.1B and $0.39. FY15 (ends Oct. '15) guidance is for revenue of $4.85B and EPS of $2.05 vs. a consensus of $4.93B and $2.07.
- Creative revenue is expected to grow "significantly" in FY15. Marketing Cloud (online ad tech) revenue and bookings to respectively rise 25% and 30%. Document Services (Acrobat) is expected to grow slightly; Print and Publishing and LiveCycle/Web Conferencing are expected to decline slightly.
- Marketing Cloud revenue, also affected by a shift towards subscription revenue streams, rose 4% Y/Y to $330.2M. However, FY14 bookings were up over 30%. Document Services revenue fell 1% to $197.1M.
- $127M was spent on buybacks in FQ4. GAAP opex rose 2% Y/Y to $807.4M.
- ADBE +7.8% AH. FQ4 results, PR, datasheet, prepared remarks.
Dec. 11, 2014, 4:06 PM
Dec. 10, 2014, 5:35 PM
Oct. 6, 2014, 7:36 PM
- Adobe (NASDAQ:ADBE) has used an analyst briefing at its MAX user conference to provide new long-term financial targets (.pdf). The media software giant is aiming for FY15 (ends Nov. '15) EPS of $2.00 (below a $2.07 consensus), and FY16 EPS of greater than $3.00.
- With Adobe having absorbed most of the near-term revenue hit from its transition to a cloud/subscription model for Creative Suite, the company expects to post a 20% revenue CAGR from FY14-FY16. Digital Media and Marketing Cloud are respectively expected to see 20% and 25% revenue CAGR, and Marketing Cloud a 30% bookings CAGR.
- The company still expects to end FY14 with 3.3M paid Creative Cloud subs, up from 1.44M at the end of FY13. 60% of Digital Media revenue is expected to be recurring, up from 36% a year earlier.
- 30%+ Marketing Cloud bookings growth is expected in FY14. $1M+ contracts have grown 84% Y/Y over the first three quarters.
- Adobe is using MAX to launch a set of new and rebranded mobile apps for Creative Cloud subs. Among them: Photoshop Sketch, Photoshop Mix, Illustrator Line, Brush, Shape, and Premiere Clip. Clip is Adobe's first iOS video-editing app.
- Also unveiled: New PC Creative Cloud tools (inc. 3D printing features and Win. 8 touch support), the Creative Cloud Market content library (free to CC subs), and a public beta for the mobile Creative SDK.
Sep. 16, 2014, 4:23 PM
- Guidance is on the light side, with FQ4 revenue expected at $1.025B-$1.075B vs. the Street outlook of $1.09B, and EPS of $0.26-$0.32 vs. the Street at $0.31.
- Guidance is located in the earnings call presentation. The live call starts at 5 ET.
- ADBE -4% AH
- Previously: Adobe Systems beats by $0.02, misses on revenue
Sep. 16, 2014, 4:03 PM
Sep. 15, 2014, 5:35 PM
Jun. 17, 2014, 4:47 PM
- Adobe (ADBE) added 464K Creative Cloud subs in FQ2, up from 405K in FQ1 and 402K in FQ4; the base is now at 2.308M. The company now expects to end FY14 (ends in November) with 3.3M CC subs, up from a prior 3M.
- Marketing Cloud (ad tech) revenue +23% Y/Y in FQ2 to $283M, after growing 24% in FQ1. Adobe still expects at least 20% Marketing Cloud rev. growth and 30% bookings growth in FY14. LiveCycle/conferencing revenue -17% to $47.4M.
- CC annualized recurring revenue (ARR) rose by $208M in FQ2 to $1.195B, and Document Services (Acrobat) ARR by $19M to $183M. Adobe now expects to end FY14 with total Digital Media ARR of $1.925B, up from a prior $1.85B.
- With the cloud transition pushing out revenue recognition, Adobe expects FQ3 revenue of $975M-$1.025B and EPS of $0.22-$0.28 vs. a consensus of $1.02B and $0.27. Investors don't mind.
- 44% of FQ2 revenue was from subscriptions, and 53% was recurring. The deferred revenue balance rose by $48M Q/Q to $929M.
- R&D spend +2% Y/Y, sales/marketing +6%. $166M was spent on buybacks.
- FQ2 results, PR, datasheet, prepared remarks
Jun. 17, 2014, 4:19 PM
Jun. 16, 2014, 5:35 PM
ADBE vs. ETF Alternatives
Adobe Systems Inc offers a line of software and services used by creative professionals, marketers, developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling operating systems.
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