Adobe reported record quarterly revenue of US$1.38 billion, representing year-over-year growth of 25 percent, for its current fiscal first quarter, fueled by the adoption of cloud-based products.
“Every day, more brands, government agencies and educational institutions globally are choosing to base their digital strategies on Adobe’s content and data platforms,” said Shantanu Narayen, Adobe President and CEO. “Our exceptional performance in Q1 is an indicator of the strong momentum we are seeing across our cloud businesses as we drive the experience economy.”
The company’s Digital Media segment revenue grew by 33 percent year-over-year to a record US$932 million, with Creative revenue growing 44 percent year-over-year to a record US$733 million.
Adobe explains Creative Cloud adoption drove its Digital Media Annualized Recurring Revenue (“ARR”) to US$3.13 billion exiting the quarter, an increase of US$246 million. Adobe Marketing Cloud achieved record revenue of US$377 million that represents year-over-year growth of 21 percent.
Year-over-year operating income for the company grew 78 percent and net income grew 200 percent on a GAAP-basis; operating income and net income both grew 48 percent on a non-GAAP basis.
Cash flow from operations was US$498 million and the company repurchased approximately 1.5 million shares during the quarter, returning US$133 million of cash to stockholders.
“We are pleased to report another record quarter with 25 percent year-over-year revenue growth. Strong Cloud adoption drove record Creative and Marketing Cloud revenue in Q1, and better-than-expected Digital Media ARR,” said Mark Garrett, Adobe CFO. “Based on our strong Q1 results and business momentum, we are increasing our annual revenue and earnings targets for the year.”
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