Adobe Reports Record Revenue in Q2 Fiscal 2023

Adobe reported financial results for its second quarter fiscal year 2023 ended June 2, 2023.

“Adobe achieved record Q2 revenue demonstrating strong demand across Creative Cloud, Document Cloud and Experience Cloud,”

“Adobe’s ground-breaking innovation positions us to lead the new era of generative AI given our rich datasets, foundation models and ubiquitous product interfaces.”

Shantanu Narayen, chair and CEO, Adobe.

“Adobe delivered outstanding net new ARR and profitability in Q2, positioning us to raise our annual targets,”

“Our unique ability to deliver top- and bottom-line growth while investing in groundbreaking innovation sets us up to capitalize on our massive $200+ billion market opportunity.”

Dan Durn, executive vice president and CFO, Adobe.

Second Quarter Fiscal Year 2023 Financial Highlights

• Adobe achieved revenue of $4.82 billion in its second quarter of fiscal year 2023, which represents 10 percent year-over-year growth or 13 percent in constant currency. Diluted earnings per share was $2.82 on a GAAP basis and $3.91 on a non-GAAP basis.
• GAAP operating income in the second quarter was $1.62 billion and non-GAAP operating income was $2.18 billion. GAAP net income was $1.30 billion and non-GAAP net income was $1.79 billion.
• Cash flows from operations were $2.14 billion.
• Remaining Performance Obligations (“RPO”) exiting the quarter were $15.22 billion.
• Adobe repurchased approximately 2.7 million shares during the quarter.

Second Quarter Fiscal Year 2023 Business Segment Highlights

• Digital Media segment revenue was $3.51 billion, which represents 10 percent year-over-year growth or 14 percent in constant currency. Creative revenue grew to $2.85 billion, representing 9 percent year-over-year growth or 14 percent in constant currency. Document Cloud revenue was $659 million, representing 11 percent year-over-year growth or 14 percent in constant currency.
• Net new Digital Media Annualized Recurring Revenue (“ARR”) was $470 million, exiting the quarter with Digital Media ARR of $14.14 billion. Creative ARR grew to $11.64 billion and Document Cloud ARR grew to $2.50 billion.
• Digital Experience segment revenue was $1.22 billion, representing 12 percent year-over-year growth or 14 percent in constant currency. Digital Experience subscription revenue was $1.07 billion, representing 11 percent year-over-year growth or 14 percent in constant currency.