Record Fourth Quarter Contributes to 24 Percent Year-Over-Year Annual Growth

SAN JOSE, Calif.–Adobe (Nasdaq:ADBE) as we speak reported monetary outcomes for its fourth quarter and monetary 12 months 2019 ended Nov. 29, 2019.

In its fourth quarter of fiscal 12 months 2019, Adobe achieved record quarterly income of $2.99 billion, which represents 21 % year-over-year development. In fiscal 12 months 2019, Adobe achieved record annual income of $11.17 billion, which represents 24 % year-over-year development.


“Adobe’s phenomenal performance in Q4 capped a record fiscal 2019 with revenue exceeding $11 billion,” said Shantanu Narayen, president and CEO, Adobe. “Adobe’s vision, category leadership, continuous product innovation and large and loyal customer base position us well for 2020 and beyond.”

“Adobe delivered one other 12 months of robust income development and increasing profitability ensuing in record earnings,” mentioned John Murphy, government vp and CFO, Adobe. “We are bullish about our alternatives and our capacity to proceed to ship robust top- and bottom-line development.”

Fourth Quarter Fiscal Year 2019 Financial Highlights

  • Adobe achieved record quarterly income of $2.99 billion in its fourth quarter of fiscal 12 months 2019, which represents 21 % year-over-year development. Diluted earnings per share was $1.74 on a GAAP-basis, and $2.29 on a non-GAAP foundation.
  • Digital Media section income was $2.08 billion, which represents 22 % year-over-year development. Creative income grew to $1.74 billion and Document Cloud income was $339 million. Digital Media Annualized Recurring Revenue (“ARR”) grew to $8.40 billion exiting the quarter, a quarter-over-quarter enhance of $539 million. Creative ARR grew to $7.31 billion, and Document Cloud ARR grew to $1.09 billion.
  • Digital Experience section income was $859 million, representing 24 % year-over-year development.
  • GAAP working earnings in the fourth quarter was $970 million, and non-GAAP working earnings was $1.27 billion. GAAP internet earnings was $852 million, and non-GAAP internet earnings was $1.12 billion.
  • Cash movement from operations was a record $1.38 billion.
  • Remaining Performance Obligation was $9.82 billion, a quarter-over-quarter enhance of $1.05 billion.
  • Adobe repurchased roughly 2.Eight million shares through the quarter.

Fiscal Year 2019 Financial Highlights

  • Adobe achieved record annual income of $11.17 billion in fiscal 12 months 2019, representing 24 % year-over-year development.
  • The company reported annual GAAP diluted earnings per share of $6.00 and non-GAAP diluted earnings per share of $7.87.
  • Digital Media section income was $7.71 billion, with Creative and Document Cloud reaching record annual income of
  • $6.48 billion and $1.22 billion, respectively. Digital Media ARR grew by $1.69 billion through the 12 months.
  • Digital Experience section income was $3.21 billion, representing 31 % year-over-year development, and subscription bookings grew by greater than 20 % through the 12 months.
  • Operating earnings grew 15 % and internet earnings grew 14 % year-over-year on a GAAP-basis; working earnings grew
  • 23 % and internet earnings grew 15 % year-over-year on a non-GAAP foundation.
  • Adobe generated a record $4.42 billion in working money movement through the 12 months.
  • The company repurchased 9.9 million shares through the 12 months, returning $2.7 billion of money to stockholders.

A reconciliation between GAAP and non-GAAP outcomes is supplied on the finish of this press launch and on Adobe’s web site.

Adobe Provides Fiscal Year and First Quarter 2020 Financial Targets

The following desk summarizes Adobe’s fiscal 12 months 2020 targets.

Adobe fiscal 12 months 2020 income ~$13.15 billion
Digital Media section income ~19 % year-over-year development
Digital Media annualized recurring income (ARR) ~$1.55 billion of internet new ARR
Digital Experience section income ~16 % year-over-year development
Digital Experience subscription income* ~18 % year-over-year development
Digital Experience subscription bookings** >20 % year-over-year development
Tax charge GAAP: ~11% | Non-GAAP: ~11%
Share depend ~486 million shares
Earnings per share GAAP: ~$7.40 | Non-GAAP: ~$9.75

* Includes income from SaaS, managed service, ratable time period, utilization primarily based, and subscription service choices for Digital Experience
** Includes annualized subscription worth of SaaS, managed service, time period and subscription service choices beneath contract for Data & Insights, Content & Commerce and Customer Journey Management options

The following desk summarizes Adobe’s first quarter fiscal 12 months 2020 targets.

Adobe Q1 fiscal 12 months 2020 income ~$3.04 billion
Digital Media section income ~19 % year-over-year development
Digital Media annualized recurring income (ARR) ~$360 million of internet new ARR
Digital Experience section income ~15 % year-over-year development
Tax charge GAAP: ~5% | Non-GAAP: ~11%
Share depend ~489 million shares
Earnings per share GAAP: ~$1.76 | Non-GAAP: ~$2.23