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10-QPeriod: Q3 FY2022

ADOBE INC. Quarterly Report for Q3 Ended Jun 3, 2022

Filed June 29, 2022For Securities:ADBE

Summary

Adobe Inc.'s (ADBE) second quarter fiscal year 2022 filing for the period ending June 2, 2022, demonstrates continued strong performance, particularly within its core Digital Media and Digital Experience segments. Total revenue reached $4.386 billion, a 14% increase year-over-year, driven by robust subscription revenue growth across its Creative Cloud and Document Cloud offerings. The company maintained healthy profitability, with net income rising to $1.178 billion. Adobe's Annualized Recurring Revenue (ARR) also showed positive momentum, reaching $12.95 billion for the Digital Media segment. Despite a challenging macroeconomic environment and foreign currency headwinds, Adobe managed its costs effectively and generated solid operating cash flow, underscoring the resilience and recurring nature of its business model.

Financial Statements
Beta
Revenue$4.39B
Cost of Revenue$539.00M
Gross Profit$3.85B
Operating Expenses$2.32B
Operating Income$1.53B
Interest Expense$28.00M
Net Income$1.18B
EPS (Basic)$2.50
EPS (Diluted)$2.49
Shares Outstanding (Basic)472.10M
Shares Outstanding (Diluted)473.30M

Key Highlights

  • 1Total revenue increased by 14% year-over-year to $4.386 billion, primarily driven by subscription revenue growth.
  • 2Net income grew to $1.178 billion, reflecting strong operational execution and profitability.
  • 3Digital Media segment revenue saw a 15% year-over-year increase, fueled by Creative Cloud and Document Cloud subscription growth.
  • 4Digital Experience segment revenue grew by 17% year-over-year, indicating continued demand for its customer experience solutions.
  • 5Annualized Recurring Revenue (ARR) for the Digital Media segment reached $12.95 billion, up 7% from the prior year.
  • 6The company repurchased $3.85 billion of common stock during the six months ended June 3, 2022, returning capital to shareholders.
  • 7Operating cash flow remained strong at $3.81 billion for the six months ended June 3, 2022.

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