Adobe Conference Call Highlights
Adobe Systems Incorporated (NASDAQ: ABDE) recently reported its fourth quarter earnings. Shares of the company are up 9 percent.
Below are some key highlights from its conference call.
• In Q4, we delivered revenue of $1.07 billion, contributing to total revenue of $4.15 billion in FY 2014.
• In Digital Media, Creative Cloud continued its strong performance.
• As of the end of Q4, Creative Cloud adoption grew by more than 644,000 to over 3.45 million subscriptions, significantly exceeding our annual target.
• We have permission to expand our footprint and extend our brand in these areas and are excited about a major update in the first half of FY 2015.
• Across our Creative and Document Services businesses, total Digital Media ARR grew to $1.95 billion at the end of FY 2014.
• Reported revenue for Adobe Marketing Cloud in Q4 was $330 million. We continued to deliver significant innovation in Adobe Marketing Cloud during Q4.
• Adobe Target and Adobe Media Optimizer solutions had strong results in Q4.
• With over 30 trillion data transactions measured annually by Adobe Marketing Cloud, we're in a unique position to predict and report on major retail and consumer trends.
• In FY 2014, Adobe achieved annual revenue of $4.147 billion. GAAP EPS was $0.50 and non-GAAP EPS was $1.29.
• All of these results were well ahead of the annual targets we provided entering the year.
• We reported Digital Media segment revenue of $2.6 billion, ahead of our target of $2.5 billion that we communicated last December.
• Other financial highlights during the year include growing deferred revenue to a record $1.16 billion, and increasing our unbilled backlog to approximately $1.74 billion exiting the year.
• In the fourth quarter of FY 2014, Adobe achieved revenue of $1.73 billion, at the high end of our targeted range.
• In Q4 of last year, the percentage was 44% and in Q4 of fiscal 2012, it was 27%.
• In Digital Media, we achieved revenue of $649 million.
• Adoption of Creative Cloud for teams accelerated in Q4 with momentum in both the channel as well as on Adobe.com.
• Our success with individual and team subscriptions and Enterprise Term License Agreements, or ETLAs, helped to drive Creative ARR to a total of $1.68 billion exiting Q4 at constant currency from December of 2013, an increase of $272 million quarter-over-quarter.
• Print and Publishing segment revenue was $50 million in Q4.
• We've revalued that ARR amount based on December 2014 FX rates, and this has led to an updated ARR of $1.875 billion, which is approximately $72 million lower entering FY 2015.
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