Summary
Adobe Inc. reported strong financial results for the first quarter of fiscal year 2017, demonstrating continued execution of its strategic growth plans in Digital Media and Digital Marketing. Total revenue reached $1.68 billion, a 22% increase year-over-year, driven significantly by subscription revenue which now accounts for 82% of total revenue. The Digital Media segment saw a 22% growth, with Creative ARR reaching $3.76 billion, while the Digital Marketing segment grew 23%, boosted by the acquisition of TubeMogul. Net income increased substantially by 57% to $398.4 million, reflecting robust revenue growth and improved operational efficiencies. The company also maintained a strong cash position, with net cash from operations increasing by 47% to $730.4 million.
Financial Highlights
54 data points| Revenue | $1.68B |
| Cost of Revenue | $237.34M |
| Gross Profit | $1.44B |
| Operating Expenses | $975.31M |
| Operating Income | $469.00M |
| Interest Expense | $18.13M |
| Net Income | $398.45M |
| EPS (Basic) | $0.81 |
| EPS (Diluted) | $0.80 |
| Shares Outstanding (Basic) | 494.61M |
| Shares Outstanding (Diluted) | 500.86M |
Key Highlights
- 1Total revenue for Q1 FY17 was $1.68 billion, a 22% increase year-over-year, largely driven by subscription revenue.
- 2Subscription revenue, representing 82% of total revenue, increased by 29% to $1.38 billion.
- 3Digital Media segment revenue grew 22% to $1.14 billion, with Creative ARR reaching $3.76 billion.
- 4Digital Marketing segment revenue increased by 23% to $501.1 million, with significant contribution from the TubeMogul acquisition.
- 5Net income surged 57% to $398.4 million, indicating strong profitability.
- 6Net cash provided by operating activities increased by 47% to $730.4 million.
- 7The company repurchased approximately 2.2 million shares during the quarter under its stock repurchase program.