NASDAQ$ADBE

Adobe Systems Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Adobe's Q3 2021 revenue reached a record $3.94 billion, representing a 22% year-over-year growth.

Adobe achieved record revenue of $3.94 billion in Q3 2021, a 22% increase year-over-year. Digital Media segment revenue grew by 23%, while Digital Experience segment revenue increased by 26%. The company's GAAP EPS was $2.52, and non-GAAP EPS was $3.11.

  • Adobe achieved record revenue of $3.94 billion, representing 22% year-over-year growth.
  • GAAP diluted earnings per share was $2.52, representing 28% year-over-year growth, and non-GAAP diluted earnings per share was $3.11, representing 21% year-over-year growth.
  • Digital Media segment revenue was $2.87 billion, a 23% year-over-year increase, with Creative revenue growing to $2.37 billion and Document Cloud revenue to $493 million.
  • Digital Media Annualized Recurring Revenue (ARR) increased $455 million quarter over quarter to $11.67 billion.

Headline financials

Total Revenue

$3.94B

Previous: $3.23B+22.0%
EPS (adj)

$3.11

Previous: $2.57+21.0%
Digital Media ARR

$11.7B

Previous: $9.63B+21.2%
Remaining Performance Obligations

$12.6B

Previous: $10.3B+22.1%
Capital Expenditures

-$249M

Previous: -$316M+21.2%
Free Cash Flow

$963M

Previous: $639M+50.7%
Net Income

$1.21B

Previous: $955M+26.9%
Operating Income

$1.44B

Previous: $1.07B+34.8%
Gross Profit

$3.47B

Previous: $2.8B+23.9%
Cash & Equivalents

$4.62B

Previous: $3.77B+22.7%
Total Assets

$26.1B

Previous: $22.4B+16.6%
Stock-Based Comp

$280M

Previous: $232M+20.7%

Revenue & EPS history

Adobe · Revenue · Quarterly

$3.94B

Q3 2021+22%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Adobe · $3.86B total across 2 segments · Q3 2021

  • Digital Media
    $2.87B+22.6%
  • Digital Experience
    $985M+17.5%

Forward guidance

Adobe is providing fourth quarter financial targets factoring current macroeconomic conditions and expected year-end seasonal strength.

Tailwinds

  • Total revenue~$4.07 billion
  • Digital Media segment revenue~20 percent year-over-year growth
  • Digital Media annualized recurring revenue (ARR)~$550 million of net new ARR
  • Digital Experience segment revenue~22 percent year-over-year growth
  • Digital Experience subscription revenue~26 percent year-over-year growth

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 Q3 2021

Historical avgQ3 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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