NASDAQ$ADBE

Adobe Systems Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Adobe's Q4 2021 earnings were reported, showcasing record revenue and growth in key segments.

Adobe reported record Q4 revenue of $4.11 billion, a 20% year-over-year increase, with significant contributions from Digital Media and Digital Experience segments. The company's strong performance led to GAAP EPS of $2.57 and non-GAAP EPS of $3.20. Adobe exceeded $2 billion in operating cash flows for the quarter.

  • Adobe achieved record revenue of $4.11 billion, representing 20% year-over-year growth.
  • Digital Media segment revenue reached $3.01 billion, a 21% year-over-year increase, driven by growth in Creative and Document Cloud revenues.
  • Digital Experience segment revenue was $1.01 billion, a 23% year-over-year increase, with subscription revenue growing by 27%.
  • The company's Remaining Performance Obligations (RPO) exiting the quarter were $13.99 billion, representing a 23% year-over-year growth.

Headline financials

Total Revenue

$4.11B

Previous: $3.42B+20.0%
EPS (adj)

$3.20

Previous: $2.81+13.9%
Digital Media ARR

$12.2B

Previous: $10.2B+20.2%
Remaining Performance Obligations

$14B

Previous: $11.3B+23.4%
Capital Expenditures

$99M

Previous: $103M-3.9%
Free Cash Flow

$2.05B

Previous: $1.68B+22.0%
Net Income

$1.23B

Previous: $2.25B-45.2%
Operating Income

$1.5B

Previous: $1.22B+23.5%
Gross Profit

$3.6B

Previous: $3B+20.3%
Cash & Equivalents

$3.84B

Previous: $4.48B-14.2%
Total Assets

$27.2B

Previous: $24.3B+12.2%
Stock-Based Comp

$269M

Previous: $233M+15.5%

Revenue & EPS history

Adobe · Revenue · Quarterly

$4.11B

Q4 2021+20%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Adobe · $4.02B total across 2 segments · Q4 2021

  • Digital Media
    $3.01B+20.4%
  • Digital Experience
    $1.01B+23.3%

Forward guidance

Adobe provided financial targets for fiscal year 2022 and the first quarter of fiscal year 2022, factoring in the strengthening of the U.S. Dollar and the return to a 13-week first quarter and a 52-week fiscal year.

Tailwinds

  • Total revenue target of approximately $17.90 billion for fiscal year 2022.
  • Digital Media annualized recurring revenue (ARR) target of approximately $1.90 billion of net new ARR for fiscal year 2022.
  • Targeting approximately $4.23 billion in total revenue for the first quarter of fiscal year 2022.
  • Digital Media annualized recurring revenue (ARR) target of approximately $400 million of net new ARR for the first quarter of fiscal year 2022.
  • Fiscal year 2022 non-GAAP diluted earnings per share target of approximately $13.70.

Headwinds

  • The strengthening of the U.S. Dollar against foreign currencies.
  • Return to a 13-week first quarter and a 52-week fiscal year from fiscal 2021, which included an extra week in Q1.
  • GAAP earnings per share target of ~$10.25 for fiscal year 2022.
  • GAAP earnings per share target of ~$2.63 for the first quarter of fiscal year 2022.
  • Non-GAAP effective income tax rate target of 17.0% for fiscal year 2022.

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 Q4 2021

Historical avgQ4 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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