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As Of Filer Filing For·On·As Docs:Size 6/18/19 Adobe Inc. 8-K:2,9 6/18/19 2:338K |
Document/Exhibit Description Pages Size 1: 8-K Current Report HTML 25K 2: EX-99.1 Miscellaneous Exhibit HTML 119K
Exhibit |
• | Adobe
achieved record quarterly revenue of $2.74 billion in its second quarter of fiscal year 2019, which represents 25 percent year-over-year growth. Diluted earnings per share was $1.29 on a GAAP-basis, and $1.83 on a non-GAAP basis. |
• | Digital Media segment revenue was $1.89 billion, which represents 22 percent year-over year growth. Creative revenue grew to $1.59 billion and Document Cloud achieved revenue of $296 million. Digital Media Annualized Recurring Revenue (“ARR”) grew to $7.47 billion exiting the quarter, a quarter-over-quarter increase of $406 million. Creative ARR grew to $6.55 billion, and Document Cloud ARR grew to $921 million. |
• | Digital
Experience segment revenue was $784 million, representing 34 percent year-over-year growth. |
• | GAAP operating income in the second quarter was $750 million, and non-GAAP operating income was $1.05 billion. GAAP net income was $633 million, and non-GAAP net income was $901 million. |
• | Cash flow from operations was $1.11 billion. |
• | Remaining
Performance Obligation was $8.37 billion. |
• | Adobe repurchased approximately 2.5 million shares during the quarter. |
Adobe total Q3 fiscal year 2019 revenue | ~$2.80 billion | |
Digital Media segment revenue | ~20% year/year growth | |
Digital Experience segment revenue | ~34% year/year growth | |
Net
new Digital Media annualized recurring revenue (“ARR”) | ~$360 million | |
Tax rate | GAAP: ~11% | Non-GAAP: ~11% |
Share count | ~491 million shares | |
Earnings per share | GAAP: ~$1.40 | Non-GAAP: ~$1.95 |
Three Months Ended | Six Months Ended | ||||||||||||||
May 31, 2019 (*) | May 31, 2019 (*) | ||||||||||||||
Revenue: | |||||||||||||||
Subscription | $ | 2,456,097 | $ | 1,923,131 | $ | 4,761,064 | $ | 3,716,489 | |||||||
Product | 152,816 | 150,993 | 323,370 | 322,601 | |||||||||||
Services
and support | 135,367 | 121,236 | 260,792 | 235,217 | |||||||||||
Total revenue | 2,744,280 | 2,195,360 | 5,345,226 | 4,274,307 | |||||||||||
Cost
of revenue: | |||||||||||||||
Subscription | 296,476 | 186,355 | 584,507 | 351,040 | |||||||||||
Product | 9,345 | 10,779 | 21,450 | 23,656 | |||||||||||
Services
and support | 101,667 | 84,210 | 198,817 | 165,550 | |||||||||||
Total cost of revenue | 407,488 | 281,344 | 804,774 | 540,246 | |||||||||||
Gross
profit | 2,336,792 | 1,914,016 | 4,540,452 | 3,734,061 | |||||||||||
Operating
expenses: | |||||||||||||||
Research and development | 475,958 | 374,128 | 940,595 | 722,897 | |||||||||||
Sales
and marketing | 848,927 | 646,215 | 1,630,445 | 1,227,172 | |||||||||||
General and administrative | 219,334 | 178,040 | 435,443 | 348,480 | |||||||||||
Amortization
of purchased intangibles | 43,026 | 17,149 | 89,592 | 34,295 | |||||||||||
Total operating expenses | 1,587,245 | 1,215,532 | 3,096,075 | 2,332,844 | |||||||||||
Operating
income | 749,547 | 698,484 | 1,444,377 | 1,401,217 | |||||||||||
Non-operating
income (expense): | |||||||||||||||
Interest and other income (expense), net | 2,558 | 11,599 | 6,824 | 28,271 | |||||||||||
Interest
expense | (40,577 | ) | (20,363 | ) | (81,170 | ) | (40,262 | ) | |||||||
Investment gains (losses), net | (756 | ) | 1,079 | 43,075 | 4,075 | ||||||||||
Total
non-operating income (expense), net | (38,775 | ) | (7,685 | ) | (31,271 | ) | (7,916 | ) | |||||||
Income before income taxes | 710,772 | 690,799 | 1,413,106 | 1,393,301 | |||||||||||
Provision
for income taxes | 78,179 | 27,632 | 106,272 | 147,058 | |||||||||||
Net income | $ | 632,593 | $ | 663,167 | $ | 1,306,834 | $ | 1,246,243 | |||||||
Basic
net income per share | $ | 1.30 | $ | 1.35 | $ | 2.68 | $ | 2.53 | |||||||
Shares
used to compute basic net income per share | 487,535 | 491,914 | 487,795 | 491,993 | |||||||||||
Diluted net income per share | $ | 1.29 | $ | 1.33 | $ | 2.65 | $ | 2.50 | |||||||
Shares
used to compute diluted net income per share | 492,212 | 498,252 | 493,200 | 499,166 |
* | Adobe
adopted ASU No. 2014-09, Revenue from Contracts with Customers, using the modified retrospective method during the first quarter of fiscal 2019. Prior period results have not been restated to reflect this change in accounting standards. Refer to our Form 10-Q for the second quarter of fiscal year 2019 for additional information. |
May
31, 2019 (*) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash
and cash equivalents | $ | 2,082,910 | $ | 1,642,775 | |||
Short-term investments | 1,396,069 | 1,586,187 | |||||
Trade
receivables, net of allowances for doubtful accounts of $12,379 and $14,981, respectively | 1,272,668 | 1,315,578 | |||||
Prepaid expenses and other current assets | 590,998 | 312,499 | |||||
Total
current assets | 5,342,645 | 4,857,039 | |||||
Property and equipment, net | 1,205,020 | 1,075,072 | |||||
Goodwill | 10,697,874 | 10,581,048 | |||||
Purchased
and other intangibles, net | 1,917,149 | 2,069,001 | |||||
Other assets | 503,221 | 186,522 | |||||
Total assets | $ | 19,665,909 | $ | 18,768,682 | |||
LIABILITIES
AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Trade payables | $ | 169,101 | $ | 186,258 | |||
Accrued
expenses | 1,314,998 | 1,163,185 | |||||
Debt | 3,145,668 | — | |||||
Income taxes payable | 45,778 | 35,709 | |||||
Deferred
revenue | 3,011,552 | 2,915,974 | |||||
Total current liabilities | 7,687,097 | 4,301,126 | |||||
Long-term
liabilities: | |||||||
Debt | 987,938 | 4,124,800 | |||||
Deferred revenue | 122,522 | 137,630 | |||||
Income
taxes payable | 637,733 | 644,101 | |||||
Deferred income taxes | 133,886 | 46,702 | |||||
Other liabilities | 165,040 | 152,209 | |||||
Total
liabilities | 9,734,216 | 9,406,568 | |||||
Stockholders’ equity: | |||||||
Preferred
stock, $0.0001 par value; 2,000 shares authorized | — | — | |||||
Common stock, $0.0001 par value | 61 | 61 | |||||
Additional paid-in-capital | 6,050,800 | 5,685,337 | |||||
Retained
earnings | 13,183,938 | 11,815,597 | |||||
Accumulated other comprehensive income (loss) | (144,364 | ) | (148,130 | ) | |||
Treasury stock, at cost (114,561 and 113,171,
respectively), net of reissuances | (9,158,742 | ) | (7,990,751 | ) | |||
Total stockholders’ equity | 9,931,693 | 9,362,114 | |||||
Total liabilities and stockholders’
equity | $ | 19,665,909 | $ | 18,768,682 |
* | Adobe adopted ASU No. 2014-09, Revenue
from Contracts with Customers, using the modified retrospective method during the first quarter of fiscal 2019. Prior period results have not been restated to reflect this change in accounting standards. Refer to our Form 10-Q for the second quarter of fiscal year 2019 for additional information. |
Three
Months Ended | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 632,593 | $ | 663,167 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and accretion | 145,609 | 76,360 | |||||
Stock-based compensation | 204,300 | 145,376 | |||||
Unrealized
investment (gains) losses, net | 1,700 | (573 | ) | ||||
Changes in deferred revenue | (84,118 | ) | 62,063 | ||||
Changes in other operating assets and liabilities | 209,242 | 30,013 | |||||
Net
cash provided by operating activities | 1,109,326 | 976,406 | |||||
Cash flows from investing activities: | |||||||
Purchases,
sales and maturities of short-term investments, net | 100,486 | 131,896 | |||||
Purchases of property and equipment | (85,492 | ) | (45,316 | ) | |||
Purchases and sales
of long-term investments, intangibles and other assets, net | (4,921 | ) | (4,287 | ) | |||
Acquisitions, net of cash acquired | — | (14,614 | ) | ||||
Net cash provided by
investing activities | 10,073 | 67,679 | |||||
Cash flows from financing activities: | |||||||
Purchases
of treasury stock | (750,000 | ) | (700,000 | ) | |||
Taxes paid related to net share settlement of equity awards, net of proceeds from treasury stock reissuances | (21,813 | ) | (16,854 | ) | |||
Repayment
of capital lease obligations | (288 | ) | (511 | ) | |||
Net cash used for financing activities | (772,101 | ) | (717,365 | ) | |||
Effect of exchange rate changes on cash and cash
equivalents | (3,234 | ) | (5,715 | ) | |||
Net increase in cash and cash equivalents | 344,064 | 321,005 | |||||
Cash and cash equivalents at beginning of period | 1,738,846 | 2,666,981 | |||||
Cash
and cash equivalents at end of period | $ | 2,082,910 | $ | 2,987,986 |
Three Months Ended | |||||||||||
May 31, 2019 (*) | March 1, 2019 (*) | ||||||||||
Operating income: | |||||||||||
GAAP
operating income | $ | 749,547 | $ | 698,484 | $ | 694,830 | |||||
Stock-based and deferred compensation expense | 203,673 | 146,773 | 187,115 | ||||||||
Amortization
of purchased intangibles | 96,714 | 32,378 | 102,690 | ||||||||
Non-GAAP operating income | $ | 1,049,934 | $ | 877,635 | $ | 984,635 | |||||
Net
income: | |||||||||||
GAAP net income | $ | 632,593 | $ | 663,167 | $ | 674,241 | |||||
Stock-based
and deferred compensation expense | 203,673 | 146,773 | 187,115 | ||||||||
Amortization of purchased intangibles | 96,714 | 32,378 | 102,690 | ||||||||
Investment
(gains) losses, net | 756 | (1,079 | ) | (43,831 | ) | ||||||
Income tax adjustments | (33,132 | ) | (15,812 | ) | (76,221 | ) | |||||
Non-GAAP
net income | $ | 900,604 | $ | 825,427 | $ | 843,994 | |||||
Diluted
net income per share: | |||||||||||
GAAP diluted net income per share | $ | 1.29 | $ | 1.33 | $ | 1.36 | |||||
Stock-based
and deferred compensation expense | 0.41 | 0.29 | 0.38 | ||||||||
Amortization of purchased intangibles | 0.20 | 0.06 | 0.21 | ||||||||
Investment
(gains) losses, net | — | — | (0.09 | ) | |||||||
Income tax adjustments | (0.07 | ) | (0.02 | ) | (0.15 | ) | |||||
Non-GAAP
diluted net income per share | $ | 1.83 | $ | 1.66 | $ | 1.71 | |||||
Shares
used in computing diluted net income per share | 492,212 | 498,252 | 494,188 |
* | Adobe
adopted ASU No. 2014-09, Revenue from Contracts with Customers, using the modified retrospective method during the first quarter of fiscal 2019. Prior period results have not been restated to reflect this change in accounting standards. Refer to our Form 10-Q for the second quarter of fiscal year 2019 for additional information. |
Third Quarter Fiscal 2019 | ||||
Diluted net income per share: | ||||
GAAP
diluted net income per share | $ | 1.40 | ||
Stock-based and deferred compensation expense | 0.42 | |||
Amortization of purchased intangibles | 0.20 | |||
Income
tax adjustments | (0.07 | ) | ||
Non-GAAP diluted net income per share | $ | 1.95 | ||
Shares used to compute diluted net income per share | 491.0 |
This ‘8-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
Filed on / For Period End: | 6/18/19 | |||
5/31/19 | ||||
3/1/19 | 10-Q, DEF 14A | |||
11/30/18 | 10-K, 5 | |||
6/1/18 | 10-Q | |||
List all Filings |