ADBE Q3 2022 Earnings

Call Details

• Call Title: Adobe Q3 2022 Earnings Call
• Date: September 15, 2022 at 9:00 PM UTC
• Management Team:
  • Jonathan Voss (VP of Investor Relations)
  • Shantanu Narayen (Chairman and CEO)
  • David Wadhwani (President of Digital Media)
  • Anil Chakravarthy (President of Digital Experience)
  • Dan Dern (Executive Vice President and CFO)

Call Summary

Financial Performance

• Total revenue for Q3 was $4.43B representing 15% year-over-year growth.
• GAAP diluted earnings per share for the quarter was $2.42 and non-GAAP diluted earnings per share was $3.40.
• Digital Media revenue was $3.23B for the quarter.
• Digital Experience revenue was $1.12B with subscription revenue of $981M for the quarter.
• Document Cloud revenue was $607M, which grew 25% year over year.
• Cash flows from operations were $1.70B, up 20% year over year.
• Remaining performance obligation (RPO) exiting the quarter was $14.11B, growing 12% year over year or 15% when factoring in a 3% foreign exchange headwind.
• Adobe repurchased approximately 5.1M shares in the quarter at a cost of $1.80B.

ARR / Recurring Revenue Growth

• Net new digital media ARR in Q3 was $449M and total digital media ARR exiting Q3 was $13.40B.
• Creative Cloud revenue was $2.63B and Creative Cloud net new ARR was $330M in the quarter.
• Document Cloud added $119M of net new ARR in Q3, Adobe's strongest Q3 to date for Document Cloud net new ARR.
• Digital Media ARR exiting the quarter grew 16% year over year on an exit basis.
• Figma is expected to add approximately $200M of net new ARR this year and to surpass $400M total ARR exiting 2022 with greater than 150% net dollar retention rate.
• Q4 net new digital media ARR target is approximately $550M as part of Q4 guidance.