Early Access

10-KPeriod: FY2021

ADOBE INC. Annual Report, Year Ended Dec 3, 2021

Filed January 21, 2022For Securities:ADBE

Summary

Adobe Inc.'s 2021 10-K filing highlights a year of robust growth, driven by strong performance in its Digital Media and Digital Experience segments. The company experienced a significant increase in revenue, largely fueled by subscription-based offerings like Creative Cloud and Document Cloud, alongside continued expansion in its Digital Experience suite. Strategic acquisitions, including Frame.io and Workfront, bolstered its product portfolio and market position. Despite a challenging global economic environment influenced by the COVID-19 pandemic, Adobe demonstrated resilience. The company's financial health remains strong, supported by significant operating cash flows and a substantial stock repurchase program. Adobe continues to invest in product development and innovation, focusing on expanding its customer base and enhancing its cloud-based solutions to capitalize on the ongoing digital transformation trend. Investors can look forward to continued subscription revenue growth and strategic investments aimed at long-term shareholder value.

Financial Statements
Beta
Revenue$15.79B
Cost of Revenue$1.86B
Gross Profit$13.92B
Operating Expenses$8.12B
Operating Income$5.80B
Interest Expense$113.00M
Net Income$4.82B
EPS (Basic)$10.10
EPS (Diluted)$10.02
Shares Outstanding (Basic)477.30M
Shares Outstanding (Diluted)481.00M

Key Highlights

  • 1Total revenue grew to $15.785 billion in fiscal 2021, a 23% increase year-over-year.
  • 2Digital Media segment revenue increased by 25% to $11.52 billion, driven by strong Creative Cloud and Document Cloud subscription growth.
  • 3Digital Experience segment revenue rose by 24% to $3.87 billion, benefiting from subscription revenue growth and the Workfront acquisition.
  • 4Annualized Recurring Revenue (ARR) for Digital Media reached $12.24 billion, up 19% year-over-year.
  • 5The company completed two significant acquisitions in fiscal 2021: Frame.io for approximately $1.18 billion and Workfront for approximately $1.52 billion.
  • 6Net income was $4.82 billion, a decrease of 8% from fiscal 2020, primarily due to a non-recurring tax benefit in the prior year.
  • 7Net cash provided by operating activities increased by 26% to $7.23 billion, reflecting strong operational performance.

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