After hitting the record revenue of $1.84 billion in Q3 of 2017, Adobe has done it again. They broke another record and reported $2.08 billion income in Q1 of 2018. Although many photographers are unhappy with the subscription-only model, it seems Adobe is still doing just fine. Even more than fine.
Adobe has announced the record revenue of $2.08 billion, and $1.23 billion of that came from Creative Cloud in the Digital Media Segment. The overall $2.08 billion sum represents 24 percent year-over-year income increase. Here are the financial highlights, and if you wish to go into detail, you can check out this PDF shared by Adobe.
- Adobe achieved record quarterly revenue of $2.08 billion in its first quarter of fiscal year 2018, which represents 24 percent year-over-year revenue growth.
- Diluted earnings per share was $1.17 on a GAAP-basis, and $1.55 on a non-GAAP basis.
- Digital Media segment revenue was $1.46 billion, with Creative revenue growing to $1.23 billion and Document Cloud achieving revenue of $231 million.
- Digital Media Annualized Recurring Revenue (“ARR”) grew to $5.72 billion exiting the quarter, a quarter-over-quarter increase of $336 million. Creative ARR grew to $5.07 billion, and Document Cloud ARR grew to $647 million.
- Digital Experience segment revenue was $554 million, which represents 16 percent year-over-year growth.
- Operating income grew 50 percent and net income grew 46 percent year-over-year on a GAAP-basis; operating income grew 43 percent and net income grew 64 percent year-over-year on a non-GAAP basis.
- Cash flow from operations was $990 million, and deferred revenue grew 25 percent year-over-year to approximately $2.57 billion.
- Adobe repurchased approximately 1.6 million shares during the quarter, returning $301 million of cash to stockholders.
Mark Garrett, executive vice president and CFO at Adobe, said that their “leadership in the large addressable markets [they] created, combined with Adobe’s leveraged operating model, contributed to another record quarter in Q1.” Considering that Adobe has increased prices of some of their subscription plans, who knows, we might soon see another record in earnings soon.