Adobe Reports Record Revenue in Q1 2017

From Adobe:

SAN JOSE, Calif.--Adobe (Nasdaq:ADBE) today reported financial results for its first quarter fiscal year 2017 ended March 3, 2017.

Financial Highlights

• Adobe achieved record quarterly revenue of $1.68 billion in its first quarter of fiscal year 2017.
• Diluted earnings per share was $0.80 on a GAAP-basis, and $0.94 on a non-GAAP basis.
• Digital Media segment revenue was $1.14 billion, with record Creative revenue growing to $942 million.
• Strong Creative Cloud and Document Cloud adoption and retention drove Digital Media Annualized Recurring Revenue (“ARR”) to $4.25 billion exiting the quarter, a quarter-over-quarter increase of $265 million.
• Adobe Marketing Cloud achieved record revenue of $477 million.
• Operating income grew 52 percent and net income grew 57 percent year-over-year on a GAAP-basis; operating income grew 40 percent and net income grew 42 percent year-over-year on a non-GAAP basis.
• Cash flow from operations was a record $730 million, and deferred revenue grew to approximately $2.1 billion.
• The company repurchased approximately 2.2 million shares during the quarter, returning $238 million of cash to stockholders.

A reconciliation between GAAP and non-GAAP results is provided at the end of this press release and on Adobe’s website.

Executive Quotes

“Whether you’re a designer, student, enterprise or government agency, reimagining your customer experience has become a critical part of every digital transformation strategy,” said Shantanu Narayen, president and CEO of Adobe. “Adobe’s mission to help our customers design and deliver great experiences has never been more relevant as is reflected in our outstanding Q1 results.”

“Adobe achieved record revenue, profit and cash flow in Q1," said Mark Garrett, Adobe executive vice president and chief financial officer. “Our solid execution and business momentum combined with strong market tailwinds give us confidence in our ability to continue to deliver strong financial results. We remain bullish about our prospects for the rest of 2017 and beyond.”

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