Adobe Reports Strong Q1 FY2014 Results
Recurring Revenue More Than Half of Company's First Quarter Revenue
First Quarter Financial Highlights
- Adobe achieved revenue of $1.0 billion, at the high end of its targeted range of $950 million to $1.0 billion.
- Adobe exited Q1 with1 million 844 thousand paid Creative Cloud subscriptions, an increase of 405 thousand when compared to the number of subscriptions as of the end of Q4 fiscal year 2013.
- Creative Annualized Recurring Revenue (“ARR”) grew to $987 million, and total Digital Media ARR grew to $1.15 billion.
- Adobe Marketing Cloud quarterly revenue was $267 million, representing 24 percent year-over-year growth.
- Diluted earnings per share were $0.09 on a GAAP-basis, and $0.30 on a non-GAAP basis.
- Cash flow from operations was $252 million.
- Deferred revenue grew by $52 million to a record $881 million.
- More than half of Adobe’s Q1 revenue was from recurring sources such as Creative Cloud subscriptions and Adobe Marketing Cloud.
- The company repurchased 4.5 million shares during the quarter, returning approximately $263 million of cash to stockholders.
- A reconciliation between GAAP and non-GAAP results is provided at the end of this press release and on Adobe’s website.
“Adobe’s Q1 momentum was driven by strong adoption of Creative Cloud and Adobe Marketing Cloud, said Shantanu Narayen, president and chief executive officer, Adobe. “We have an amazing pipeline of innovation that we will deliver in the coming months, as well as plans to differentiate ourselves by further integrating our Cloud businesses.”
“We achieved a significant milestone with our transition to the Cloud in our first quarter with more than half of Adobe’s total revenue coming from recurring sources such as Creative Cloud subscriptions and Adobe Marketing Cloud adoption,” said Mark Garrett, executive vice president and chief financial officer, Adobe. “In our Creative business, reported revenue from subscriptions exceeded revenue from legacy perpetual licenses for the first time.”
Adobe to Webcast Earnings Conference Call
Adobe will webcast its first quarter fiscal year 2014 earnings conference call today at 2:00 p.m. Pacific Time from its investor relations website: www.adobe.com/ADBE. A copy of Adobe management’s prepared remarks, including financial targets and conference call slides, has been posted to Adobe’s investor relations website in advance of the conference call for reference.
A reconciliation between GAAP and non-GAAP financial targets is also provided on the website.
Forward-Looking Statements Disclosure
This press release contains forward-looking statements, including those related to business momentum, innovation in our products, future product features and updates, and growth in recurring revenue, which involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: failure to develop, market and distribute products and services that meet customer requirements, introduction of new products and business models by competitors, failure to successfully manage transitions to new business models and markets, fluctuations in subscription renewal or upgrade rates, uncertainty in economic conditions and the financial markets, risks associated with cyber-attacks and information security, difficulty in predicting revenue from new businesses and the potential impact on our financial results from changes in our business models, and failure to realize the anticipated benefits of past or future acquisitions.
For a discussion of these and other risks and uncertainties, please refer to Adobe’s Annual Report on Form 10-K for our fiscal year ended Nov. 29, 2013.
The financial information set forth in this press release reflects estimates based on information available at this time. These amounts could differ from actual reported amounts stated in Adobe’s Quarterly Report on Form 10-Q for our quarter ended
Feb. 28, 2014, which Adobe expects to file in March 2014.
Adobe assumes no obligation to, and does not currently intend to, update these forward-looking statements.
Adobe Systems GmbH
Adobe verändert die Welt durch digitale Erlebnisse.
Die Adobe Systems GmbH in München steuert Vertrieb, Marketing und Kundenbetreuung in Deutschland, Österreich und der Schweiz.
Adobe Systems GmbH
HR München HRB 111 128
Geschäftsführer: Harald Esch, Richard T. Rowley, Keith San Felipe
Weitere Informationen erhalten Sie auch im Internet unter www.adobe.de, www.adobe.at oder www.adobe.ch.
Tel. in Deutschland: 069-500 718 55
Tel. aus Österreich: 01 795 674 84
Tel. aus der Schweiz: 044 800 95 81
Fax aus allen Ländern: 0031-20 582 08 00