March 15, 2023 — Adobe(NASDAQ:ADBE) today reported financial results for its first quarter fiscal year 2023 ended March 3, 2023.
Adobe(NASDAQ:ADBE) Guides For Q2 EPS of $3.75-$3.80 on Revenue of $4.75-$4.78 Billion, vs CIQ Analyst Consensus of $3.76/Share on Revenue of $4.76 Billion.
Adobe (NASDAQ:ADBE) reported quarterly earnings of $3.80 per share which beat the analyst consensus estimate of $3.68 by 3.26 percent. The company reported quarterly sales of $4.66 billion which beat the analyst consensus estimate of $4.62 billion by 0.76 percent.
First Quarter Fiscal Year 2023 Financial Highlights
Adobe achieved revenue of $4.66 billion in its first quarter of fiscal year 2023, which represents 9 percent year-over-year growth or 13 percent in constant currency. Diluted earnings per share was $2.71 on a GAAP basis and $3.80 on a non-GAAP basis.
GAAP operating income in the first quarter was $1.59 billion and non-GAAP operating income was $2.13 billion. GAAP net income was $1.25 billion and non-GAAP net income was $1.75 billion.
Cash flows from operations were $1.69 billion.
Remaining Performance Obligations (“RPO”) exiting the quarter were $15.21 billion.
Adobe repurchased approximately 5.0 million shares during the quarter.
Digital Media segment revenue was $3.40 billion, which represents 9 percent year-over-year growth or 14 percent in constant currency. Creative revenue grew to $2.76 billion, representing 8 percent year-over-year growth or 13 percent in constant currency. Document Cloud revenue was $634 million, representing 13 percent year-over-year growth or 16 percent in constant currency.
Net new Digital Media Annualized Recurring Revenue (“ARR”) was $410 million, exiting the quarter with Digital Media ARR of $13.67 billion. Creative ARR grew to $11.28 billion and Document Cloud ARR grew to $2.39 billion.
Digital Experience segment revenue was $1.18 billion, representing 11 percent year-over-year growth or 14 percent in constant currency. Digital Experience subscription revenue was $1.04 billion, representing 12 percent year-over-year growth or 14 percent in constant currency.
outlook
Adobe’s updated fiscal year 2023 targets:
EPS GAAP: $10.85 to $11.15，Non-GAAP: $15.30 to $15.60
Adobe’s second quarter fiscal year 2023 targets:
Total revenue $4.75 billion to $4.78 billion
EPS GAAP: $2.65 to $2.70，Non-GAAP: $3.75 to $3.80