Company Provides Preliminary Financial Targets for Fiscal
Year 2018 at Financial Analyst Briefing
Adobe Systems Incorporated (Nasdaq:ADBE) today will host a
financial analyst briefing with investors and financial analysts at
its Adobe MAX user conference.
At today’s meeting in Las Vegas, Adobe’s CEO and CFO will
outline the company’s momentum, opportunities and strategies across
each of its major businesses. As part of their presentations, Adobe
will review market research information which indicates the
company’s total addressable market has expanded to approximately
$83 billion by 2020. The Company is also providing preliminary
financial targets for fiscal year 2018, and is reaffirming its
current Q4 fiscal year 2017 revenue and earnings per share
targets.
“Adobe’s vision has never been more clear or more relevant – to
empower people and businesses to design and deliver amazing digital
experiences,” said Shantanu Narayen, president and CEO, Adobe. “The
FY2018 targets we are providing today include revenue growth of 20
percent and earnings growth of 30 percent, and reflect our
continued momentum and leadership.”
Adobe Provides Preliminary FY2018 Financial Targets
At today’s financial analyst meeting, Adobe is providing
preliminary financial targets for its fiscal year 2018, which are
summarized in the table below.
Total Adobe revenue1 Approximately $8.7
billion (~20 percent year-over-year growth) Digital Media segment
revenue Approximately 23 percent year-over-year growth Adobe
Experience Cloud subscription revenue2 Approximately 20
percent year-over-year growth Adobe Experience Cloud total revenue
Approximately 15 percent year-over-year growth GAAP earnings
per share Approximately $4.40 Non-GAAP earnings per share
Approximately $5.50 Digital Media Annualized Recurring
Revenue (“ARR”) Approximately $1 billion of net new ARR
Adobe Experience Cloud bookings3 Approximately 20 percent
year-over-year growth 1 Revenue and
earnings per share targets were set based on September 2017 foreign
exchange (“FX”) rates forward adjusted to mid-2018, which for
current planning purposes are assumed to be constant during fiscal
year 2018 2 Includes revenue from SaaS, managed service and term
offerings for Adobe Analytics Cloud and Adobe Marketing Cloud, as
well as total revenue for Adobe Advertising Cloud
3 Includes annualized subscription value
of SaaS, managed service and term offerings under contract for
Adobe Analytics Cloud and Adobe Marketing Cloud
A reconciliation between FY2018 GAAP and non-GAAP earnings per
share targets is provided later in this press release.
Adobe Reaffirms Q4 Revenue and Earnings Targets
Adobe stated it is on track to achieve Q4 FY2017 revenue of
$1.95 billion. The Company also stated it is on track to achieve
its Q4 earnings per share targets of $0.86 on a GAAP-basis, and
$1.15 on a non-GAAP basis.
A reconciliation between GAAP and non-GAAP earnings per share
targets is provided later in this press release.
Adobe to Webcast Financial Analyst Meeting
Adobe will webcast its meeting with financial analysts and
investors in attendance at Adobe MAX beginning at 5 p.m. Eastern
Time today. People can access the webcast and slides from this
event from the Adobe Investor Relations webpage at
http://www.adobe.com/ADBE. The live video webcast will last
approximately two hours and will be archived on Adobe's website for
approximately 30 days. There will be no phone dial-in
capability.
Forward-Looking Statements Disclosure
This press release contains forward-looking statements,
including those related to business momentum and strategy, market
expansion, revenue, earnings, annualized recurring revenue,
bookings, operating cash flow, non-operating other expense, GAAP
and non-GAAP tax rate, GAAP and non-GAAP earnings per share and
share count, all of which involve risks and uncertainties that
could cause actual results to differ materially. Factors that might
cause or contribute to such differences include, but are not
limited to: failure to develop, market and offer products and
services that meet customer requirements, introduction of new
products, services and business models by competitors, fluctuations
in subscription renewal rates, our ability to predict such renewals
and risks related to the timing of revenue recognition from our
subscription offerings and enterprise term license agreements,
complex and unpredictable sales cycles for some enterprise
offerings, failure to successfully manage transitions to new
business models and markets, uncertainty in economic conditions and
the financial markets, risks associated with cyber-attacks and
information security, potential interruptions or delays in hosted
services provided by us or third parties, changes in accounting
principles, and failure to realize the anticipated benefits of past
or future acquisitions.
For a discussion of these and other risks and uncertainties,
please refer to Adobe’s Annual Report on Form 10-K for our fiscal
year 2016 ended Dec. 2, 2016, and Adobe's Quarterly Reports on Form
10-Q issued in fiscal year 2017.
Adobe assumes no obligation to, and does not currently intend
to, update these forward-looking statements.
About Adobe Systems Incorporated
Adobe is changing the world through digital experiences. For
more information, visit www.adobe.com.
© 2017 Adobe Systems Incorporated. All rights reserved. Adobe
and the Adobe logo are either registered trademarks or trademarks
of Adobe Systems Incorporated in the United States and/or other
countries. All other trademarks are the property of their
respective owners.
Reconciliation of GAAP to Non-GAAP Financial Targets
The following table shows Adobe's preliminary fiscal year 2018
GAAP earnings per share financial target reconciled to the non-GAAP
target included in this document.
Fiscal Year 2018 Diluted
earnings per share: GAAP diluted earnings per share $ 4.40
Stock-based and deferred compensation expense 1.18 Amortization of
purchased intangibles 0.28 Income tax adjustments (0.36 ) Non-GAAP
diluted earnings per share $ 5.50
Shares used to compute diluted earnings
per share (in millions)
500.0
The following table shows Adobe's fourth quarter fiscal year
2017 GAAP earnings per share target reconciled to the non-GAAP
financial target included in this document.
Fourth Quarter Fiscal
2017 Diluted net income per share: GAAP diluted net
income per share $ 0.86 Stock-based and deferred compensation
expense 0.25 Amortization of purchased intangibles 0.07 Income tax
adjustments (0.03 ) Non-GAAP diluted net income per share $ 1.15
Shares used to compute diluted net income
per share (in millions)
500.0
Use of Non-GAAP Financial Information
Adobe continues to provide all information required in
accordance with GAAP, but believes evaluating its ongoing operating
results may not be as useful if an investor is limited to reviewing
only GAAP financial measures. Adobe uses non-GAAP financial
information to evaluate its ongoing operations and for internal
planning and forecasting purposes. Adobe's management does not
itself, nor does it suggest that investors should, consider such
non-GAAP financial measures in isolation from, or as a substitute
for, financial information prepared in accordance with GAAP. Adobe
presents such non-GAAP financial measures in reporting its
financial results to provide investors with an additional tool to
evaluate Adobe's operating results. Adobe believes these non-GAAP
financial measures are useful because they allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision-making. This allows
institutional investors, the analyst community and others to better
understand and evaluate our operating results and future prospects
in the same manner as management.
Adobe's management believes it is useful for itself and
investors to review, as applicable, both GAAP information that may
include items such as stock-based and deferred compensation
expenses, restructuring and other charges, amortization of
purchased intangibles and certain activity in connection with
technology license arrangements, investment gains and losses and
the related tax impact of all of these items, income tax
adjustments, the income tax effect of the non-GAAP pre-tax
adjustments from the provision for income taxes, and the non-GAAP
measures that exclude such information in order to assess the
performance of Adobe's business and for planning and forecasting in
subsequent periods. Whenever Adobe uses such a non-GAAP financial
measure, it provides a reconciliation of the non-GAAP financial
measure to the most closely applicable GAAP financial measure.
Investors are encouraged to review the related GAAP financial
measures and the reconciliation of these non-GAAP financial
measures to their most directly comparable GAAP financial measure
as detailed above.
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version on businesswire.com: http://www.businesswire.com/news/home/20171018006439/en/
Investor Relations ContactAdobeMike Saviage,
408-536-4416ir@adobe.comorPublic
Relations ContactAdobeDan Berthiaume, 408-536-2584dberthia@adobe.com
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