NASDAQ$ADBE

Adobe Systems Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Adobe's Q1 2021 results reflected record quarterly revenue and raised annual targets.

Adobe achieved record quarterly revenue of $3.91 billion, representing 26 percent year-over-year growth. Diluted earnings per share was $2.61 on a GAAP basis, and $3.14 on a non-GAAP basis. The company is raising its annual targets based on the strong Q1 results.

  • Adobe achieved record quarterly revenue of $3.91 billion, a 26% year-over-year increase.
  • Digital Media segment revenue was $2.86 billion, representing 32% year-over-year growth.
  • Digital Media ARR increased $435 million quarter-over-quarter to $10.69 billion exiting the quarter.
  • GAAP operating income was $1.45 billion, and GAAP net income was $1.26 billion.

Headline financials

Total Revenue

$3.91B

Previous: $3.09B+26.3%
EPS (adj)

$3.14

Previous: $2.27+38.3%
Digital Media ARR

$10.7B

Previous: $8.73B+22.5%
Remaining Performance Obligations

$11.6B

Previous: $9.91B+17.2%
Capital Expenditures

-$59M

Previous: -$94M+37.2%
Free Cash Flow

$1.2B

Previous: $861M+39.6%
Net Income

$1.26B

Previous: $955M+32.0%
Operating Income

$1.45B

Previous: $937M+55.2%
Gross Profit

$3.46B

Previous: $2.64B+31.0%
Cash & Equivalents

$3.45B

Previous: $2.69B+28.4%
Total Assets

$25B

Previous: $21.2B+17.8%
Stock-Based Comp

$260M

Previous: $217M+19.8%

Revenue & EPS history

Adobe · Revenue · Quarterly

$3.91B

Q1 2021+26.3%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Adobe · $3.79B total across 2 segments · Q1 2021

  • Digital Media
    $2.86B+31.8%
  • Digital Experience
    $934M+8.9%

Forward guidance

Adobe provides second quarter and updated fiscal year 2021 financial targets.

Tailwinds

  • Total revenue target of approximately $3.72 billion for Q2 2021.
  • Digital Media segment revenue target of approximately 21 percent year-over-year growth for Q2 2021.
  • Digital Media annualized recurring revenue (ARR) target of approximately $450 million of net new ARR for Q2 2021.
  • Digital Experience segment revenue target of approximately 18 percent year-over-year growth for Q2 2021.
  • Total revenue target of approximately $15.45 billion for fiscal year 2021.

Headwinds

  • GAAP tax rate target of approximately 19.5 percent for Q2 2021.
  • Non-GAAP tax rate target of approximately 16 percent for Q2 2021.
  • Share count of approximately 482 million shares for Q2 2021.
  • GAAP tax rate target of approximately 17.5 percent for fiscal year 2021.
  • Share count of approximately 481 million shares for fiscal year 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.5%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-0.3%

Avg return

30 days after

43%

32 / 74 earnings

Positive

+14.2%

Q2 2024

Best reaction

-19.4%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-1.2%-4.6%
Q1 2026-0.1%-8.8%-16.5%
Q4 2025+1.6%+1.4%-2.7%
Q3 2025-3.4%+3.3%-3.7%
Q2 2025-0.8%-0.3%-5.0%
Q1 2025-13.9%-10.8%-19.6%
Q4 2024-13.2%-15.6%-25.8%
Q3 2024-7.5%-11.3%-14.6%
Q2 2024+14.2%+13.6%+21.6%
Q1 2024-14.1%-9.1%-17.3%
Q4 2023-7.7%-5.4%-5.9%
Q3 2023-4.5%-2.1%-0.9%
Q2 2023+3.3%+1.3%+7.4%
Q1 2023+6.0%+8.9%+13.8%
Q4 2022-0.4%-0.5%+1.3%
Q3 2022-19.4%-21.7%-22.5%
Q2 2022-4.3%-3.7%+0.8%
Q1 2022-6.8%-4.8%-8.0%
Q4 2021-11.7%-11.6%-17.4%
Q3 2021-2.4%-2.9%-0.4%
Q2 2021+4.1%+6.0%+11.6%
Q1 2021-0.2%+3.7%+12.1%
Q4 2020-1.6%-0.2%+0.3%
Q3 2020-2.0%-3.8%+3.1%
Q2 2020-0.1%+1.2%+14.6%
Q1 2020+6.4%-1.1%+1.1%
Q4 2019+4.7%+6.3%+11.9%
Q3 2019-1.1%-1.8%-4.8%
Q2 2019+5.7%+8.6%+12.5%
Q1 2019-2.8%-1.5%+2.8%
Q4 2018-6.3%-7.9%-3.3%
Q3 2018+2.6%+1.1%-7.1%
Q2 2018-1.7%-1.7%+1.0%
Q1 2018+3.3%+5.2%+2.6%
Q4 2017+0.4%-1.1%+10.3%
Q3 2017-3.7%-4.7%+10.2%
Q2 2017+2.8%+3.6%+6.8%
Q1 2017+4.0%+2.4%+5.7%
Q4 2016-2.1%-0.0%+2.6%
Q3 2016+8.1%+7.8%+9.4%
Q2 2016-4.1%-5.9%-1.7%
Q1 2016+6.0%
Q4 2015+2.1%
Q3 2015+0.9%
Q2 2015-1.3%
Q1 2015-1.8%
Q4 2014+8.8%
Q3 2014-4.2%
Q2 2014+8.1%
Q1 2014-0.8%
Q4 2013+11.4%
Q3 2013+9.2%
Q2 2013+5.5%
Q1 2013+3.4%
Q4 2012+4.5%
Q3 2012+6.0%
Q2 2012-2.0%
Q1 2012-2.0%
Q4 2011-0.9%
Q3 2011+1.7%
Q2 2011+2.1%
Q1 2011-0.9%
Q4 2007-3.1%
Q4 2010-3.1%
Q3 2010-5.0%
Q2 2010-5.6%
Q1 2010+0.2%
Q1 2009+0.2%
Q4 2009-4.6%
Q3 2009-2.1%
Q3 2008-2.1%
Q2 2008+0.4%
Q2 2009+0.4%
Q4 2008+0.4%

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