NASDAQ$ADBE

Adobe Systems Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Adobe achieved record Q2 revenue with strong demand across Creative Cloud, Document Cloud and Experience Cloud.

Adobe reported record revenue of $4.39 billion in Q2 fiscal year 2022, representing 14% year-over-year growth. Diluted earnings per share was $2.49 on a GAAP basis and $3.35 on a non-GAAP basis. Cash flows from operations were $2.04 billion.

  • Adobe achieved record Q2 revenue with strong demand across Creative Cloud, Document Cloud and Experience Cloud.
  • Delivered another quarter of strong financial results, with greater than $2 billion in operating cash flows.
  • Digital Media segment revenue was $3.20 billion, representing 15 percent year-over-year growth.
  • Net New Digital Media Annualized Recurring Revenue was $464 million, exiting the quarter with Digital Media ARR of $12.95 billion.

Headline financials

Total Revenue

$4.39B

Previous: $3.84B+14.4%
EPS (adj)

$3.35

Previous: $3.03+10.6%
Digital Media ARR

$13B

Previous: $11.2B+15.5%
Remaining Performance Obligations

$13.8B

Previous: $12.2B+13.0%
Capital Expenditures

-$226M

Previous: -$154M-46.8%
Free Cash Flow

$952M

Previous: $962M-1.0%
Net Income

$1.18B

Previous: $1.12B+5.6%
Operating Income

$1.53B

Previous: $1.41B+8.7%
Gross Profit

$3.85B

Previous: $3.39B+13.4%
Cash & Equivalents

$3.37B

Previous: $4.25B-20.8%
Total Assets

$26.3B

Previous: $25.6B+2.9%
Stock-Based Comp

$352M

Previous: $260M+35.4%

Revenue & EPS history

Adobe · Revenue · Quarterly

$4.39B

Q2 2022+14.4%vs Q2 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Adobe · $4.3B total across 2 segments · Q2 2022

  • Digital Media
    $3.2B+14.7%
  • Digital Experience
    $1.1B+17.3%

Forward guidance

Adobe is providing third quarter and updated full fiscal year 2022 targets that factor in the increase in effective tax rates, the impact of the ongoing war in Ukraine, an incremental FX headwind, and summer seasonality in Q3 followed by a sequentially strong Q4.

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 Q2 2022

Historical avgQ2 2022

-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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