Adobe ends a strong fiscal year, with revenue up 23% in Q4
Year-over-year operating income grew 63 percent and net income grew 79 percent on a GAAP-basis
SAN JOSE, Calif. – December 16, 2016 — Adobe today reported financial results for its fourth quarter and fiscal year 2016 ended Dec. 2, 2016.
In its fourth quarter of fiscal year 2016, Adobe achieved record quarterly revenue of $1.61 billion, representing year-over-year growth of 23 percent. In fiscal year 2016, Adobe achieved record annual revenue of $5.85 billion, representing year-over-year growth of 22 percent. The company also achieved record quarterly net income, cash flow and deferred revenue during its fourth quarter.
“Adobe’s market-leading digital media and digital marketing solutions are revolutionizing how customers design and deliver exceptional digital experiences,” said Shantanu Narayen, president and chief executive officer of Adobe. “We enter 2017 with significant market momentum and strong technology tailwinds.”
“Across our business, Adobe had a strong 2016 as we met or exceeded all of our key financial targets for the year,” said Mark Garrett, Adobe executive vice president and chief financial officer. “We are uniquely positioned as a cloud provider to deliver both top line and bottom line growth.”
Fourth Quarter Financial Highlights
- Adobe achieved record quarterly revenue of $1.61 billion in its fourth quarter of fiscal year 2016, representing 23 percent year-over-year growth.
- Diluted earnings per share were $0.80 on a GAAP-basis, and $0.90 on a non-GAAP basis.
- Digital Media segment revenue was $1.08 billion, with Creative revenue growing 33 percent year-over-year to $886 million.
- Strong Creative Cloud and Document Cloud adoption drove Digital Media Annualized Recurring Revenue (“ARR”) to $4.01 billion exiting the quarter, a quarter-over-quarter increase of $316 million.
- Adobe Marketing Cloud achieved record revenue of $465 million, representing 32 percent year-over-year growth.
- Year-over-year operating income grew 63 percent and net income grew 79 percent on a GAAP-basis; operating income grew 44 percent and net income grew 45 percent on a non-GAAP basis.
- Cash flow from operations was a record $696 million.
- The company repurchased approximately 3.2 million shares during the quarter, returning $331 million of cash to stockholders.
Fiscal Year 2016 Financial Highlights
- Adobe achieved record annual revenue of $5.85 billion in fiscal year 2016, representing 22 percent year-over-year growth.
- The company reported annual GAAP diluted earnings per share of $2.32 and non-GAAP diluted earnings per share of $3.01.
- Adobe grew Digital Media ARR by $1.13 billion during the year and exited the year with $4.01 billion.
- Adobe Marketing Cloud achieved $1.63 billion in annual revenue, representing 20 percent year-over-year growth.
- Adobe generated $2.2 billion in operating cash flow during the year.
- Deferred revenue grew to an all-time high of $2.01 billion, and unbilled backlog grew to approximately $3.42 billion.
- The company repurchased 10.4 million shares during the year, returning $1.01 billion of cash to stockholders.
A reconciliation between GAAP and non-GAAP results is provided at the end of this press release and on Adobe’s website.