Adobe Shares Drop as Q1, FY22 Outlook Trail Estimates

Adobe Shares Drop as Q1, FY22 Outlook Trail Estimates
An Adobe Systems Inc. software box is seen in Los Angeles, Calif., on March 13, 2017. Lucy Nicholson/Reuters
Benzinga
Updated:

Adobe Inc. FY21 revenue growth of 20 percent year-on-year to $4.11 billion, beating the consensus of $4.09 billion.

Revenue for the Digital Media segment was $3.01 billion, up 21 percent Y/Y. Creative revenue grew 19 percent Y/Y to $2.48 billion, while Document Cloud revenue rose 29 percent to $532 million.

Digital Experience segment revenue was $1.01 billion, up 23 percent Y/Y. Digital Experience subscription revenue was $886 million, up 27 percent Y/Y.

Digital Media Annualized Recurring Revenue rose $571 million Q/Q to $12.24 billion exiting the quarter. Creative ARR grew to $10.30 billion, while Document Cloud ARR grew to $1.93 billion.

Adobe generated $2.1 billion in operating cash flow and held $5.8 billion in cash and equivalents.

Non-GAAP EPS of $3.20 was in-line with the consensus.

“Adobe’s vision, category leadership, ground-breaking technology, and large and loyal customer base position us well for fiscal 2022 and beyond,” Chair and CEO Shantanu Narayen said.

“With an estimated $205 billion addressable market, we are well-positioned for significant growth in the years ahead with our industry-leading products and platforms,” CFO Dan Durn said.

Outlook

Adobe sees Q1 FY22 revenue of $4.23 billion, below the consensus of $4.34 billion. It sees non-GAAP EPS of $3.35, missing the consensus of $3.38.

Adobe sees FY22 revenue of $17.9 billion, below the consensus of $18.2 billion. It sees non-GAAP EPS of $13.70, missing the consensus of $14.26.

By Anusuya Lahiri
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