Summary
Adobe Inc. (ADBE) filed an 8-K on March 12, 2020, to report its financial results for the first fiscal quarter ended February 28, 2020. The report primarily references a press release (Exhibit 99.1) that details these results, including both GAAP and non-GAAP financial measures. Investors should note that while the press release provides key performance indicators, the company emphasizes that its non-GAAP figures are supplementary and not a substitute for GAAP. The non-GAAP measures exclude items such as stock-based compensation, amortization of intangibles, investment gains/losses, and specific income tax adjustments, which Adobe uses internally for budgeting and operational decision-making.
Key Highlights
- 1Adobe Inc. announced its first fiscal quarter 2020 financial results on March 12, 2020, via an 8-K filing.
- 2The filing incorporates by reference a press release detailing the Q1 FY2020 financial performance.
- 3Adobe presents both GAAP and non-GAAP financial results, with a clear disclaimer about the nature and use of non-GAAP measures.
- 4Non-GAAP financial measures are used by management for internal budgeting, resource allocation, and operational decision-making.
- 5Key exclusions from non-GAAP measures include stock-based compensation, amortization of intangibles, investment gains/losses, and income tax adjustments.
- 6The company believes non-GAAP measures offer supplemental insights into operational performance and comparability.
- 7The press release (Exhibit 99.1) contains the detailed financial results, which are furnished and not deemed 'filed' for certain regulatory purposes.
Frequently Asked Questions
The main purpose of this 8-K filing by Adobe Inc. is to announce and provide details on its financial results for the first fiscal quarter ended February 28, 2020, as reported in an accompanying press release.
Non-GAAP financial measures are financial metrics that exclude certain items that are included in GAAP (Generally Accepted Accounting Principles) results. Adobe uses them because they exclude items like stock-based compensation, amortization of intangibles, and investment gains/losses. The company believes these non-GAAP measures provide meaningful supplemental information about its operational performance and assist management in making budgeting and strategic decisions, as well as help investors understand results similarly to management.
No, Adobe clearly states that its non-GAAP measures are not in accordance with, or an alternative for, GAAP and may differ from those used by other companies. They believe these measures should only be used to evaluate their results of operations in conjunction with the corresponding GAAP measures.
Adobe excludes several items, including: (A) stock-based and deferred compensation expenses, (B) amortization of intangibles, (C) investment gains and losses, (D) specific income tax adjustments, and (E) the income tax effect of non-GAAP pre-tax adjustments. These exclusions are detailed in the filing.