ADBE Q3 2021 Earnings

Call Details

• Call Title: Adobe Q3 2021 Earnings Call
• Date: September 21, 2021 at 9:00 PM UTC
• Management Team:
  • Jonathan Voss (VP of Investor Relations)
  • Shantanu Narayen (Chairman and CEO)
  • John Murphy (Executive Vice President and CFO)

Call Summary

Financial Performance

• Adobe reported revenue of $3.94B in Q3 FY21, representing 22% year-over-year growth.
• GAAP diluted earnings per share were $2.52 and non-GAAP diluted earnings per share were $3.11 for the quarter.
• Digital Media revenue was $2.87B, representing 23% year-over-year growth, and Digital Media ARR exiting Q3 was $11.67B.
• Net new Digital Media ARR for the quarter was $455M, and Creative added $348M of net new Creative ARR in the quarter.
• Document Cloud revenue was $493M, representing 31% year-over-year growth, and Document Cloud added $107M of net new ARR in the quarter.
• Digital Experience revenue was $985M, representing 26% year-over-year growth, and subscription revenue in Digital Experience was $864M, up 29% year-over-year.
• Operating cash flow for the quarter was $1.42B and RPO exiting the quarter was $12.63B.

Guidance

• Adobe provided Q4 revenue guidance of approximately $4.07B and expects Digital Media revenue growth of approximately 20% year-over-year in Q4.
• Adobe guided to net new Digital Media ARR of approximately $550M for Q4, which the company described as the largest Q4 ARR guide it has given.
• Digital Experience segment revenue growth guidance for Q4 is approximately 22% year-over-year, with subscription revenue growth guidance of approximately 26% year-over-year.
• Adobe expects a GAAP tax rate of approximately 17% and a non-GAAP tax rate of approximately 16% for Q4.
• Adobe provided an estimated share count of approximately 480M shares and guided to GAAP EPS of approximately $2.52 and non-GAAP EPS of approximately $3.18 for Q4.
• The company stated that given year-to-date performance and Q4 targets, it is on track to exceed the updated annual targets provided in March.