Summary
Adobe Inc.'s (ADBE) Q1 2018 10-Q filing demonstrates robust financial performance driven by its strategic shift towards subscription-based software models. The company reported significant year-over-year revenue growth of 24%, reaching $2.08 billion, with subscription revenue being the primary driver, accounting for 86% of total revenue. This strong performance is further evidenced by a substantial increase in net income, up 46% to $583.1 million, and a healthy increase in operating cash flow. Key highlights include the continued growth in Annualized Recurring Revenue (ARR) for both Digital Media and Digital Experience segments, signaling the success of Adobe's SaaS strategy. The company also continues its commitment to returning value to shareholders through a significant stock repurchase program.
Financial Highlights
54 data points| Revenue | $2.08B |
| Cost of Revenue | $258.90M |
| Gross Profit | $1.82B |
| Operating Expenses | $1.12B |
| Operating Income | $702.73M |
| Interest Expense | $19.90M |
| Net Income | $583.08M |
| EPS (Basic) | $1.18 |
| EPS (Diluted) | $1.17 |
| Shares Outstanding (Basic) | 492.06M |
| Shares Outstanding (Diluted) | 499.43M |
Key Highlights
- 1Total revenue increased by 24% year-over-year to $2.08 billion.
- 2Subscription revenue grew by 30% year-over-year, now representing 86% of total revenue.
- 3Net income surged by 46% year-over-year to $583.1 million.
- 4Digital Media ARR reached $5.72 billion, up 6% from the prior quarter.
- 5Digital Experience revenue grew 16% year-over-year to $554.1 million.
- 6Operating cash flow increased by 35% year-over-year to $989.6 million.
- 7Adobe continues its stock repurchase program, with $1.7 billion remaining under its authorized plan as of March 2, 2018.