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Adobe reports record revenue of $4.43 billion in Q3 of FY2022

Digital Media segment revenue stood at $3.23 billion, which represents a 13% year-over-year growth

Adobe reported financial results for its third quarter of the fiscal year 2022 ended September 2, 2022.

Adobe achieved a record revenue of $4.43 billion in its third quarter of the fiscal year 2022, which represents 13% year-over-year growth or 15% in constant currency. Diluted earnings per share were $2.42 on a GAAP basis and $3.40 on a non-GAAP basis.

GAAP operating income in the third quarter was $1.48 billion, and non-GAAP operating income was $1.96 billion. GAAP net income was $1.14 billion, and non-GAAP net income was $1.60 billion.

Cash flows from operations were $1.70 billion.

The remaining Performance Obligations (“RPO”) exiting the quarter were $14.11 billion.

Adobe repurchased approximately 5.1 million shares during the quarter.

Third Quarter Fiscal Year 2022 Business Segment Highlights

Digital Media segment revenue was $3.23 billion, which represents 13% year-over-year growth or 16% in constant currency.

Creative revenue grew to $2.63 billion, representing 11% year-over-year growth or 14% in constant currency.

Document Cloud revenue was $607 million, representing 23% year-over-year growth or 25% in constant currency.

Net New Digital Media Annualised Recurring Revenue (“ARR”) was $449 million, exiting the quarter with a Digital Media ARR of $13.40 billion. Creative ARR grew to $11.15 billion and Document Cloud ARR grew to $2.25 billion.

Digital Experience segment revenue was $1.12 billion, representing 14% year-over-year growth or 15% in constant currency.

Digital Experience subscription revenue was $981 million, representing 14% year-over-year growth or 15% in constant currency.

Financial Targets

Adobe is providing fourth quarter targets that factor in the following:

  • The overall macroeconomic environment;
  • FX headwinds, as the U.S. Dollar has continued to strengthen against foreign currencies; and
  • Typical year-end seasonal strength in demand for our offerings.

“Fueled by our groundbreaking technology, track record of creating and leading categories and consistent execution, Adobe delivered another record quarter,” said Shantanu Narayen, chairman and CEO, Adobe. “With the announcement of our intent to acquire Figma, we believe we have a unique opportunity to usher in a new era of collaborative creativity.”

“Adobe achieved record revenue and strong profitability in the quarter, demonstrating that our products are mission-critical to individuals, small businesses and the world’s largest enterprises,” said Dan Durn, Executive Vice-President and CFO of Adobe. “Our operational rigour combined with our strong engine of innovation is driving growth across our platforms and will fuel future growth as the digital economy continues to expand.”

The following table summarizes Adobe’s fourth quarter fiscal year 2022 targets:

Total revenue

~$4.52 billion

Digital Media annualized recurring revenue (ARR)

~$550 million of net new ARR

Digital Media segment revenue (Y/Y growth)

~10%

~14% (constant currency)

Digital Experience segment revenue (Y/Y growth)

~13%

~15% (constant currency)

Digital Experience subscription revenue (Y/Y growth)

~13%

~15% (constant currency)

Tax rate

GAAP: ~23.0%

Non-GAAP: ~17.5%

Earnings per share1

GAAP: ~$2.44

Non-GAAP: ~$3.50

Targets assume share count of ~467 million for the fourth quarter fiscal year 2022.

Info@BestMediaInfo.com

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