Adobe Delivers Record Q1 Results
Adobe (ADBE) reported strong Q1 FY2025 results with record revenue of $5.71 billion, representing 10% year-over-year growth. The company achieved record operating cash flows of $2.48 billion and reaffirmed its FY2025 targets.
Key financial highlights include:
- GAAP diluted EPS of $4.14 and non-GAAP EPS of $5.08
- Digital Media segment revenue of $4.23 billion, up 11%
- Digital Experience segment revenue of $1.41 billion, up 10%
- Digital Media ARR reached $17.63 billion, growing 12.6% year-over-year
The company's AI-first innovations generated over $125 million in ending ARR. Adobe repurchased approximately 7.0 million shares during the quarter. The company introduced new revenue reporting categories: Business Professionals and Consumers Group ($1.53 billion, +15%) and Creative and Marketing Professionals Group ($3.92 billion, +10%).
Adobe (ADBE) ha riportato risultati forti per il primo trimestre dell'anno fiscale 2025 con un fatturato record di 5,71 miliardi di dollari, che rappresenta una crescita del 10% rispetto all'anno precedente. L'azienda ha raggiunto flussi di cassa operativi record di 2,48 miliardi di dollari e ha confermato i suoi obiettivi per l'anno fiscale 2025.
I principali punti finanziari includono:
- EPS diluito GAAP di 4,14 dollari e EPS non GAAP di 5,08 dollari
- Fatturato del segmento Media Digitale di 4,23 miliardi di dollari, in aumento dell'11%
- Fatturato del segmento Esperienza Digitale di 1,41 miliardi di dollari, in aumento del 10%
- ARR Media Digitale ha raggiunto 17,63 miliardi di dollari, crescendo del 12,6% rispetto all'anno precedente
Le innovazioni AI-first dell'azienda hanno generato oltre 125 milioni di dollari in ARR finale. Adobe ha riacquistato circa 7,0 milioni di azioni durante il trimestre. L'azienda ha introdotto nuove categorie di reporting dei ricavi: Business Professionals and Consumers Group (1,53 miliardi di dollari, +15%) e Creative and Marketing Professionals Group (3,92 miliardi di dollari, +10%).
Adobe (ADBE) reportó resultados sólidos para el primer trimestre del año fiscal 2025 con ingresos récord de 5.71 mil millones de dólares, lo que representa un crecimiento del 10% en comparación con el año anterior. La compañía logró flujos de efectivo operativos récord de 2.48 mil millones de dólares y reafirmó sus objetivos para el año fiscal 2025.
Los principales aspectos financieros incluyen:
- EPS diluido GAAP de 4.14 dólares y EPS no GAAP de 5.08 dólares
- Ingresos del segmento de Medios Digitales de 4.23 mil millones de dólares, un aumento del 11%
- Ingresos del segmento de Experiencia Digital de 1.41 mil millones de dólares, un aumento del 10%
- ARR de Medios Digitales alcanzó 17.63 mil millones de dólares, creciendo un 12.6% interanual
Las innovaciones de la compañía enfocadas en IA generaron más de 125 millones de dólares en ARR final. Adobe recompró aproximadamente 7.0 millones de acciones durante el trimestre. La compañía introdujo nuevas categorías de informes de ingresos: Business Professionals and Consumers Group (1.53 mil millones de dólares, +15%) y Creative and Marketing Professionals Group (3.92 mil millones de dólares, +10%).
어도비 (ADBE)는 2025 회계연도 1분기 강력한 실적을 보고하며 57억 1천만 달러의 기록적인 수익을 올렸으며, 이는 전년 대비 10% 성장한 수치입니다. 회사는 24억 8천만 달러의 기록적인 운영 현금 흐름을 달성했으며, 2025 회계연도 목표를 재확인했습니다.
주요 재무 하이라이트는 다음과 같습니다:
- GAAP 희석 EPS 4.14달러 및 비GAAP EPS 5.08달러
- 디지털 미디어 부문 수익 42억 3천만 달러, 11% 증가
- 디지털 경험 부문 수익 14억 1천만 달러, 10% 증가
- 디지털 미디어 ARR이 176억 3천만 달러에 도달, 전년 대비 12.6% 성장
회사의 AI 우선 혁신은 1억 2천5백만 달러 이상의 최종 ARR을 생성했습니다. 어도비는 분기 동안 약 700만 주를 재매입했습니다. 회사는 새로운 수익 보고 카테고리를 도입했습니다: 비즈니스 전문가 및 소비자 그룹(15억 3천만 달러, +15%) 및 창의적 및 마케팅 전문가 그룹(39억 2천만 달러, +10%).
Adobe (ADBE) a annoncé des résultats solides pour le premier trimestre de l'exercice 2025 avec un chiffre d'affaires record de 5,71 milliards de dollars, représentant une croissance de 10 % par rapport à l'année précédente. L'entreprise a réalisé des flux de trésorerie d'exploitation record de 2,48 milliards de dollars et a réaffirmé ses objectifs pour l'exercice 2025.
Les principaux points financiers incluent :
- EPS dilué GAAP de 4,14 dollars et EPS non GAAP de 5,08 dollars
- Chiffre d'affaires du segment Médias Numériques de 4,23 milliards de dollars, en hausse de 11%
- Chiffre d'affaires du segment Expérience Numérique de 1,41 milliard de dollars, en hausse de 10%
- ARR Médias Numériques atteignant 17,63 milliards de dollars, en croissance de 12,6 % par rapport à l'année précédente
Les innovations axées sur l'IA de l'entreprise ont généré plus de 125 millions de dollars en ARR final. Adobe a racheté environ 7,0 millions d'actions au cours du trimestre. L'entreprise a introduit de nouvelles catégories de reporting des revenus : Business Professionals and Consumers Group (1,53 milliard de dollars, +15 %) et Creative and Marketing Professionals Group (3,92 milliards de dollars, +10 %).
Adobe (ADBE) hat starke Ergebnisse für das erste Quartal des Geschäftsjahres 2025 berichtet, mit einem Rekordumsatz von 5,71 Milliarden Dollar, was einem Wachstum von 10% im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte rekordverdächtige Betriebscashflows von 2,48 Milliarden Dollar und bestätigte seine Ziele für das Geschäftsjahr 2025.
Wichtige finanzielle Highlights sind:
- GAAP verwässerte EPS von 4,14 Dollar und non-GAAP EPS von 5,08 Dollar
- Umsatz im Segment Digitale Medien von 4,23 Milliarden Dollar, ein Anstieg von 11%
- Umsatz im Segment Digitale Erfahrungen von 1,41 Milliarden Dollar, ein Anstieg von 10%
- ARR Digitale Medien erreichte 17,63 Milliarden Dollar, was einem Wachstum von 12,6% im Vergleich zum Vorjahr entspricht
Die KI-gestützten Innovationen des Unternehmens generierten über 125 Millionen Dollar an endendem ARR. Adobe hat im Quartal etwa 7,0 Millionen Aktien zurückgekauft. Das Unternehmen führte neue Umsatzberichterstattungskategorien ein: Business Professionals and Consumers Group (1,53 Milliarden Dollar, +15%) und Creative and Marketing Professionals Group (3,92 Milliarden Dollar, +10%).
- Record quarterly revenue of $5.71 billion, up 10% YoY
- Strong operating cash flows of $2.48 billion
- Digital Media ARR growth of 12.6% to $17.63 billion
- AI innovations generating $125 million in ending ARR
- Business Professionals segment showing 15% growth
- Continued share repurchase program with 7.0M shares bought
- None.
Insights
Adobe's Q1 FY2025 results showcase exceptional performance with record revenue of $5.71 billion (10% YoY growth) and record operating cash flows of $2.48 billion. This cash generation reflects a conversion rate significantly above software industry averages, highlighting the company's highly efficient subscription model.
The Digital Media ARR growth of 12.6% to $17.63 billion demonstrates Adobe's ability to maintain impressive growth rates despite its size. Both major segments performed strongly, with Digital Media revenue up 11% to $4.23 billion and Digital Experience revenue growing 10% to $1.41 billion.
Particularly noteworthy is Adobe's successful AI monetization strategy, with AI-first products generating over $125 million in ending ARR. While many tech companies struggle to convert AI investments into revenue, Adobe is clearly executing effectively in this area.
The new reporting structure provides valuable transparency, revealing that the Business Professionals and Consumers group is growing faster (15% YoY to $1.53 billion) than the Creative and Marketing Professionals group (10% YoY to $3.92 billion). This suggests Adobe is successfully expanding beyond its creative core into broader business applications.
The repurchase of approximately 7 million shares during the quarter represents efficient capital allocation and signals management confidence. Adobe's reaffirmation of FY2025 targets further reinforces this positive outlook. For a mature software company to maintain double-digit growth across all major segments while generating record cash flow demonstrates exceptional operational execution.
Adobe's Q1 results reveal a textbook example of successful AI commercialization in an industry where many companies struggle to monetize their AI investments. The $125 million in ending ARR from AI-first standalone products and add-ons represents a critical growth vector that differentiates Adobe from competitors.
The consistent performance across both Digital Media (11% growth) and Digital Experience (10% growth) segments demonstrates Adobe's successful diversification beyond its creative tools foundation into enterprise marketing technology. This balanced growth profile provides resilience against segment-specific market fluctuations.
Adobe's new reporting structure offers valuable insights into customer adoption patterns. The 15% growth in the Business Professionals and Consumers segment versus 10% growth in Creative and Marketing Professionals indicates Adobe is effectively expanding its addressable market beyond creative professionals into broader business use cases.
The $2.48 billion in operating cash flows provides Adobe substantial resources to fuel continued innovation while maintaining shareholder returns through share repurchases. This financial flexibility allows Adobe to make strategic investments in emerging technologies while insulating it from short-term market pressures.
Adobe's subscription-based business model continues to demonstrate its value through predictable, recurring revenue streams and high customer retention. The 12.6% growth in Digital Media ARR to $17.63 billion reflects strong customer loyalty and expanding wallet share. With reaffirmed FY2025 targets and evidence of successful AI monetization, Adobe is executing a multi-year strategy that positions it for continued leadership in creative, document, and marketing technology markets.
-
Record Q1 Operating Cash Flows of
$2.48 billion - Reaffirms FY2025 Targets
- Previews Customer-Focused Strategy Ahead of Its Investor Meeting at Adobe Summit
“Adobe’s success over the next decade will be driven by customer-focused innovation and new offerings for creators, marketing professionals, business professionals and consumers,” said Shantanu Narayen, chair and CEO, Adobe. “Adobe is well-positioned to capitalize on the acceleration of the creative economy driven by AI and we are reaffirming our FY2025 financial targets.”
“Our continued innovation and diversified go-to-market strategy drove a record Q1, with new AI-first standalone and add-on innovations exiting the quarter with over
First Quarter Fiscal Year 2025 Financial Highlights
-
Adobe achieved record revenue of
in its first quarter of fiscal year 2025, which represents 10 percent year-over-year growth, or 11 percent in constant currency. Diluted earnings per share was$5.71 billion on a GAAP basis and$4.14 on a non-GAAP basis.$5.08 -
GAAP operating income in the first quarter was
and non-GAAP operating income was$2.16 billion . GAAP net income was$2.72 billion and non-GAAP net income was$1.81 billion .$2.22 billion -
Cash flows from operations were
.$2.48 billion -
Exiting the quarter, Remaining Performance Obligations (“RPO”) were
, and Current Remaining Performance Obligations (“cRPO”) were 67 percent.$19.69 billion - Adobe repurchased approximately 7.0 million shares during the quarter.
First Quarter Fiscal Year 2025 Business Segment Highlights
-
Digital Media segment revenue was
, which represents 11 percent year-over-year growth, or 12 percent in constant currency. Digital Media Annualized Recurring Revenue (“ARR”) exiting the quarter was$4.23 billion , representing 12.6 percent year-over-year growth.$17.63 billion -
Digital Experience segment revenue was
, representing 10 percent year-over-year growth as reported and in constant currency. Digital Experience subscription revenue was$1.41 billion , representing 11 percent year-over-year growth as reported and in constant currency.$1.30 billion
Supplemental Disclosure for Customer Groups
Adobe will now disclose subscription revenue by both “Business Professionals and Consumers” and “Creative and Marketing Professionals” to provide additional insight. Business Professionals and Consumers Group will consist of all subscription revenue from Document Cloud, Acrobat subscription revenue in Creative Cloud, and Adobe Express subscription revenue in Creative Cloud, all of which are part of Digital Media. Creative and Marketing Professionals Group will consist of all subscription revenue from Digital Experience as well as all of the remaining subscription revenue from Creative Cloud in Digital Media.
-
Business Professionals and Consumers Group subscription revenue was
, which represents 15 percent year-over-year growth.$1.53 billion -
Creative and Marketing Professionals Group subscription revenue was
, which represents 10 percent year-over-year growth.$3.92 billion
Financial Targets
The following table summarizes Adobe’s second quarter fiscal year 2025 targets1:
Total revenue |
|
|
Digital Media segment revenue |
|
|
Digital Experience segment revenue |
|
|
Digital Experience subscription revenue |
|
|
Earnings per share |
GAAP: |
Non-GAAP: |
1 |
Targets assume non-GAAP operating margin of ~45 percent, non-GAAP tax rate of ~18.5 percent and diluted share count of ~432 million for second quarter fiscal year 2025. |
The following table summarizes Adobe’s fiscal year 2025 targets, which assumes current macroeconomic conditions2:
Total revenue |
|
|
Digital Media segment revenue |
|
|
Digital Media ending ARR growth |
|
|
Digital Experience segment revenue |
|
|
Digital Experience subscription revenue |
|
|
Earnings per share |
GAAP: |
Non-GAAP: |
2 |
Targets assume non-GAAP operating margin of ~46 percent, non-GAAP tax rate of ~18.5 percent and diluted share count of ~433 million for fiscal year 2025. |
Adobe to Host Conference Call
Adobe will webcast its first quarter fiscal year 2025 earnings conference call today at 2:00 p.m. Pacific Time from its investor relations website: http://www.adobe.com/ADBE. Earnings documents, including Adobe management’s prepared conference call remarks with slides and an investor datasheet are posted to Adobe’s Investor Relations Website in advance of the conference call for reference.
Adobe to Host Investor Meeting at Adobe Summit 2025
Adobe will host its Investor Meeting with financial analysts and investors on Tuesday, March 18, 2025 at 2:00 p.m. Pacific Time at Adobe Summit in
Forward-Looking Statements, Non-GAAP and Other Disclosures
In addition to historical information, this press release contains “forward-looking statements” within the meaning of applicable securities laws, including statements related to our business, strategy, artificial intelligence and innovation momentum; our market opportunity and future growth; market trends; current macroeconomic conditions; fluctuations in foreign currency exchange rates; strategic investments; customer success and groups; revenue; operating margin; annualized recurring revenue; tax rate; earnings per share; and share count. Each of the forward-looking statements we make in this press release involves risks, uncertainties and assumptions based on information available to us as of the date of this press release. Such risks and uncertainties, many of which relate to matters beyond our control, could cause actual results to differ materially from these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to: failure to innovate effectively and meet customer needs; issues relating to development and use of AI; failure to realize the anticipated benefits of investments or acquisitions; failure to compete effectively; damage to our reputation or brands; service interruptions or failures in information technology systems by us or third parties; security incidents; failure to effectively develop, manage and maintain critical third-party business relationships; risks associated with being a multinational corporation and adverse macroeconomic conditions; failure to recruit and retain key personnel; complex sales cycles; changes in, and compliance with, global laws and regulations, including those related to information security and privacy; failure to protect our intellectual property; litigation, regulatory inquiries and intellectual property infringement claims; changes in tax regulations; complex government procurement processes; risks related to fluctuations in or the timing of revenue recognition from our subscription offerings; fluctuations in foreign currency exchange rates; impairment charges; our existing and future debt obligations; catastrophic events; and fluctuations in our stock price. Further information on these and other factors are discussed in the section titled “Risk Factors” in Adobe’s most recently filed Annual Report on Form 10-K and Adobe's most recently filed Quarterly Reports on Form 10-Q. The risks described in this press release and in Adobe’s filings with the
Undue reliance should not be placed on the financial information set forth in this press release, which reflects estimates based on information available at this time. These amounts could differ from actual reported amounts stated in Adobe’s Quarterly Report on Form 10-Q for our fiscal quarter ended Feb. 28, 2025, which Adobe expects to file in March 2025. Adobe assumes no obligation to, and does not currently intend to, update these forward-looking statements.
A reconciliation between GAAP and non-GAAP earnings results and financial targets and a statement regarding use of non-GAAP financial information are provided at the end of this press release and on Adobe’s investor relations website.
About Adobe
Adobe is changing the world through personalized digital experiences. For more information, visit www.adobe.com.
©2025 Adobe. All rights reserved. Adobe, Creative Cloud, Document Cloud and the Adobe logo are either registered trademarks or trademarks of Adobe (or one of its subsidiaries) in
Condensed Consolidated Statements of Income |
|||||||
(In millions, except per share data; unaudited) |
|||||||
|
Three Months Ended |
||||||
|
February 28, 2025 |
|
March 1, 2024 |
||||
Revenue: |
|
|
|
||||
Subscription |
$ |
5,483 |
|
|
$ |
4,916 |
|
Product |
|
95 |
|
|
|
119 |
|
Services and other |
|
136 |
|
|
|
147 |
|
Total revenue |
|
5,714 |
|
|
|
5,182 |
|
|
|
|
|
||||
Cost of revenue: |
|
|
|
||||
Subscription |
|
490 |
|
|
|
455 |
|
Product |
|
6 |
|
|
|
5 |
|
Services and other |
|
126 |
|
|
|
130 |
|
Total cost of revenue |
|
622 |
|
|
|
590 |
|
|
|
|
|
||||
Gross profit |
|
5,092 |
|
|
|
4,592 |
|
|
|
|
|
||||
Operating expenses: |
|
|
|
||||
Research and development |
|
1,026 |
|
|
|
939 |
|
Sales and marketing |
|
1,495 |
|
|
|
1,352 |
|
General and administrative |
|
367 |
|
|
|
352 |
|
Acquisition termination fee |
|
— |
|
|
|
1,000 |
|
Amortization of intangibles |
|
41 |
|
|
|
42 |
|
Total operating expenses |
|
2,929 |
|
|
|
3,685 |
|
|
|
|
|
||||
Operating income |
|
2,163 |
|
|
|
907 |
|
|
|
|
|
||||
Non-operating income (expense): |
|
|
|
||||
Interest expense |
|
(62 |
) |
|
|
(27 |
) |
Investment gains (losses), net |
|
6 |
|
|
|
18 |
|
Other income (expense), net |
|
75 |
|
|
|
70 |
|
Total non-operating income (expense), net |
|
19 |
|
|
|
61 |
|
Income before income taxes |
|
2,182 |
|
|
|
968 |
|
Provision for income taxes |
|
371 |
|
|
|
348 |
|
Net income |
$ |
1,811 |
|
|
$ |
620 |
|
Basic net income per share |
$ |
4.15 |
|
|
$ |
1.37 |
|
Shares used to compute basic net income per share |
|
436 |
|
|
|
453 |
|
Diluted net income per share |
$ |
4.14 |
|
|
$ |
1.36 |
|
Shares used to compute diluted net income per share |
|
438 |
|
|
|
456 |
|
Condensed Consolidated Balance Sheets |
|||||||
(In millions; unaudited) |
|||||||
|
February 28, 2025 |
|
November 29, 2024 |
||||
ASSETS |
|
|
|
||||
|
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
6,758 |
|
|
$ |
7,613 |
|
Short-term investments |
|
677 |
|
|
|
273 |
|
Trade receivables, net of allowances for doubtful accounts of |
|
1,973 |
|
|
|
2,072 |
|
Prepaid expenses and other current assets |
|
1,447 |
|
|
|
1,274 |
|
Total current assets |
|
10,855 |
|
|
|
11,232 |
|
|
|
|
|
||||
Property and equipment, net |
|
1,893 |
|
|
|
1,936 |
|
Operating lease right-of-use assets, net |
|
266 |
|
|
|
281 |
|
Goodwill |
|
12,777 |
|
|
|
12,788 |
|
Other intangibles, net |
|
706 |
|
|
|
782 |
|
Deferred income taxes |
|
1,820 |
|
|
|
1,657 |
|
Other assets |
|
1,638 |
|
|
|
1,554 |
|
Total assets |
$ |
29,955 |
|
|
$ |
30,230 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
|
|
|
||||
Current liabilities: |
|
|
|
||||
Trade payables |
$ |
326 |
|
|
$ |
361 |
|
Accrued expenses and other current liabilities |
|
1,951 |
|
|
|
2,336 |
|
Debt |
|
— |
|
|
|
1,499 |
|
Deferred revenue |
|
6,347 |
|
|
|
6,131 |
|
Income taxes payable |
|
465 |
|
|
|
119 |
|
Operating lease liabilities |
|
74 |
|
|
|
75 |
|
Total current liabilities |
|
9,163 |
|
|
|
10,521 |
|
|
|
|
|
||||
Long-term liabilities: |
|
|
|
||||
Debt |
|
6,155 |
|
|
|
4,129 |
|
Deferred revenue |
|
143 |
|
|
|
128 |
|
Income taxes payable |
|
567 |
|
|
|
548 |
|
Operating lease liabilities |
|
334 |
|
|
|
353 |
|
Other liabilities |
|
498 |
|
|
|
446 |
|
Total liabilities |
|
16,860 |
|
|
|
16,125 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
13,894 |
|
|
|
13,419 |
|
Retained earnings |
|
40,186 |
|
|
|
38,470 |
|
Accumulated other comprehensive income (loss) |
|
(158 |
) |
|
|
(201 |
) |
Treasury stock, at cost |
|
(40,827 |
) |
|
|
(37,583 |
) |
Total stockholders’ equity |
|
13,095 |
|
|
|
14,105 |
|
Total liabilities and stockholders’ equity |
$ |
29,955 |
|
|
$ |
30,230 |
|
Condensed Consolidated Statements of Cash Flows |
|||||||
(In millions; unaudited) |
|||||||
|
Three Months Ended |
||||||
|
February 28, 2025 |
|
March 1, 2024 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
1,811 |
|
|
$ |
620 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation, amortization and accretion |
|
217 |
|
|
|
212 |
|
Stock-based compensation |
|
475 |
|
|
|
451 |
|
Other non-cash adjustments |
|
(152 |
) |
|
|
(110 |
) |
Changes in deferred revenue |
|
231 |
|
|
|
160 |
|
Changes in other operating assets and liabilities |
|
(100 |
) |
|
|
(159 |
) |
Net cash provided by operating activities |
|
2,482 |
|
|
|
1,174 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Purchases, sales and maturities of short-term investments, net |
|
(401 |
) |
|
|
139 |
|
Purchases of property and equipment |
|
(26 |
) |
|
|
(37 |
) |
Purchases and sales of long-term investments, intangibles and other assets, net |
|
(57 |
) |
|
|
(36 |
) |
Net cash provided by (used for) investing activities |
|
(484 |
) |
|
|
66 |
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Repurchases of common stock |
|
(3,250 |
) |
|
|
(2,000 |
) |
Taxes paid related to net share settlement of equity awards, net of proceeds from treasury stock re-issuances |
|
(63 |
) |
|
|
(125 |
) |
Proceeds from issuance of debt |
|
1,997 |
|
|
|
— |
|
Repayment of debt |
|
(1,500 |
) |
|
|
— |
|
Other financing activities, net |
|
(25 |
) |
|
|
(3 |
) |
Net cash used for financing activities |
|
(2,841 |
) |
|
|
(2,128 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(12 |
) |
|
|
1 |
|
Net change in cash and cash equivalents |
|
(855 |
) |
|
|
(887 |
) |
Cash and cash equivalents at beginning of period |
|
7,613 |
|
|
|
7,141 |
|
Cash and cash equivalents at end of period |
$ |
6,758 |
|
|
$ |
6,254 |
|
Non-GAAP Results
The following table shows Adobe’s GAAP results reconciled to non-GAAP results included in this release.
(In millions, except per share data) |
Three Months Ended |
||||||||||
|
February 28,
|
|
March 1,
|
|
November 29,
|
||||||
Operating income: |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
GAAP operating income |
$ |
2,163 |
|
|
$ |
907 |
|
|
$ |
1,957 |
|
Stock-based and deferred compensation expense |
|
469 |
|
|
|
469 |
|
|
|
455 |
|
Amortization of intangibles |
|
83 |
|
|
|
83 |
|
|
|
84 |
|
Acquisition-related expenses (1) |
|
— |
|
|
|
1,007 |
|
|
|
— |
|
Loss contingency (reversal) (2) |
|
— |
|
|
|
1 |
|
|
|
— |
|
Lease-related asset impairments and other charges (3) |
|
— |
|
|
|
— |
|
|
|
100 |
|
Non-GAAP operating income |
$ |
2,715 |
|
|
$ |
2,467 |
|
|
$ |
2,596 |
|
|
|
|
|
|
|
||||||
Net income: |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
GAAP net income |
$ |
1,811 |
|
|
$ |
620 |
|
|
$ |
1,683 |
|
Stock-based and deferred compensation expense |
|
469 |
|
|
|
469 |
|
|
|
455 |
|
Amortization of intangibles |
|
83 |
|
|
|
83 |
|
|
|
84 |
|
Acquisition-related expenses (1) |
|
— |
|
|
|
1,007 |
|
|
|
— |
|
Loss contingency (reversal) (2) |
|
— |
|
|
|
1 |
|
|
|
— |
|
Lease-related asset impairments and other charges (3) |
|
— |
|
|
|
— |
|
|
|
100 |
|
Investment (gains) losses, net |
|
(6 |
) |
|
|
(18 |
) |
|
|
(14 |
) |
Income tax adjustments |
|
(133 |
) |
|
|
(116 |
) |
|
|
(176 |
) |
Non-GAAP net income |
$ |
2,224 |
|
|
$ |
2,046 |
|
|
$ |
2,132 |
|
|
|
|
|
|
|
||||||
Diluted net income per share: |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
GAAP diluted net income per share |
$ |
4.14 |
|
|
$ |
1.36 |
|
|
$ |
3.79 |
|
Stock-based and deferred compensation expense |
|
1.07 |
|
|
|
1.03 |
|
|
|
1.03 |
|
Amortization of intangibles |
|
0.19 |
|
|
|
0.18 |
|
|
|
0.19 |
|
Acquisition-related expenses (1) |
|
— |
|
|
|
2.21 |
|
|
|
— |
|
Lease-related asset impairments and other charges (3) |
|
— |
|
|
|
— |
|
|
|
0.23 |
|
Investment (gains) losses, net |
|
(0.01 |
) |
|
|
(0.04 |
) |
|
|
(0.03 |
) |
Income tax adjustments |
|
(0.31 |
) |
|
|
(0.26 |
) |
|
|
(0.40 |
) |
Non-GAAP diluted net income per share |
$ |
5.08 |
|
|
$ |
4.48 |
|
|
$ |
4.81 |
|
|
|
|
|
|
|
||||||
Shares used to compute diluted net income per share |
|
438 |
|
|
|
456 |
|
|
|
443 |
|
(1) |
Associated with the Figma transaction, and includes deal costs, certain professional fees and the termination fee | |
(2) |
Associated with an IP litigation matter | |
(3) |
Associated with the optimization of our leased facilities, and primarily includes impairment charges related to certain operating lease right-of-use assets and leasehold improvements |
Non-GAAP Results (continued)
The following table shows Adobe’s first quarter fiscal year 2025 GAAP tax rate reconciled to the non-GAAP tax rate included in this release.
|
First Quarter Fiscal 2025 |
|||
Effective income tax rate: |
|
|||
|
|
|||
GAAP effective income tax rate |
|
17.0 |
|
% |
Income tax adjustments |
|
3.5 |
|
|
Stock-based and deferred compensation expense |
|
(1.7 |
) |
|
Amortization of intangibles |
|
(0.3 |
) |
|
Non-GAAP effective income tax rate (4) |
|
18.5 |
|
% |
(4) |
Represents Adobe’s fixed long-term non-GAAP tax rate based on projections and currently available information through fiscal 2025 |
Reconciliation of GAAP to Non-GAAP Financial Targets and Assumptions
The following tables show Adobe's second quarter fiscal year 2025 financial targets and assumptions reconciled to non-GAAP financial targets and assumptions included in this release.
(Shares in millions) |
Second Quarter Fiscal 2025 |
||||||||
|
Low |
|
High |
||||||
Diluted net income per share: |
|
|
|
||||||
|
|
|
|
||||||
GAAP diluted net income per share |
$ |
3.80 |
|
|
|
$ |
3.85 |
|
|
Stock-based and deferred compensation expense |
|
1.16 |
|
|
|
|
1.16 |
|
|
Amortization of intangibles |
|
0.19 |
|
|
|
|
0.19 |
|
|
Income tax adjustments |
|
(0.20 |
) |
|
|
|
(0.20 |
) |
|
Non-GAAP diluted net income per share |
$ |
4.95 |
|
|
|
$ |
5.00 |
|
|
|
|
|
|
||||||
Shares used to compute diluted net income per share |
432 |
|
|
|
432 |
|
|
|
Second Quarter Fiscal 2025 |
||
Operating margin: |
|
||
|
|
||
GAAP operating margin |
|
35.0 |
% |
Stock-based and deferred compensation expense |
|
8.6 |
|
Amortization of intangibles |
|
1.4 |
|
Non-GAAP operating margin |
|
45.0 |
% |
|
Second Quarter Fiscal 2025 |
|||
Effective income tax rate: |
|
|||
|
|
|||
GAAP effective income tax rate |
|
19.5 |
|
% |
Stock-based and deferred compensation expense |
|
(1.7 |
) |
|
Amortization of intangibles |
|
(0.3 |
) |
|
Income tax adjustments |
|
1.0 |
|
|
Non-GAAP effective income tax rate (4) |
|
18.5 |
|
% |
(4) |
Represents Adobe’s fixed long-term non-GAAP tax rate based on projections and currently available information through fiscal 2025 |
Reconciliation of GAAP to Non-GAAP Financial Targets and Assumptions (continued)
The following tables show Adobe's annual fiscal year 2025 financial targets and assumptions reconciled to non-GAAP financial targets and assumptions included in this release.
(Shares in millions) |
Fiscal Year 2025 |
||||||||
|
Low |
|
High |
||||||
Diluted net income per share: |
|
|
|
||||||
|
|
|
|
||||||
GAAP diluted net income per share |
$ |
15.80 |
|
|
|
$ |
16.10 |
|
|
Stock-based and deferred compensation expense |
|
4.69 |
|
|
|
|
4.69 |
|
|
Amortization of intangibles |
|
0.71 |
|
|
|
|
0.71 |
|
|
Income tax adjustments |
|
(1.00 |
) |
|
|
|
(1.00 |
) |
|
Non-GAAP diluted net income per share |
$ |
20.20 |
|
|
|
$ |
20.50 |
|
|
|
|
|
|
||||||
Shares used to compute diluted net income per share |
433 |
|
|
|
433 |
|
|
|
Fiscal Year 2025 |
||
Operating margin: |
|
||
|
|
||
GAAP operating margin |
|
36.0 |
% |
Stock-based and deferred compensation expense |
|
8.7 |
|
Amortization of intangibles |
|
1.3 |
|
Non-GAAP operating margin |
|
46.0 |
% |
Use of Non-GAAP Financial Information
Adobe continues to provide all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Adobe uses non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. Adobe's management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Adobe presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Adobe's operating results. Adobe believes these non-GAAP financial measures are useful because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. This allows institutional investors, the analyst community and others to better understand and evaluate Adobe’s operating results and future prospects in the same manner as management.
Adobe's management believes it is useful for itself and investors to review, as applicable, both GAAP information as well as non-GAAP measures, which may exclude items such as stock-based and deferred compensation expenses, amortization of intangibles, investment gains and losses, income tax adjustments and other items that are not considered part of Adobe’s ongoing operations, and the income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes. Adobe uses these non-GAAP measures in order to assess the performance of Adobe's business and for planning and forecasting in subsequent periods. Whenever such a non-GAAP measure is used, Adobe provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed above.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250312836456/en/
Investor Relations Contact
Steve Day
Adobe
ir@adobe.com
Public Relations Contact
Ashley Levine
Adobe
adobepr@adobe.com
Source: Adobe