Adobe (Nasdaq:ADBE) today will host a financial analyst meeting
with investors and financial analysts at its Adobe MAX Creativity
Conference.
At today’s meeting in Los Angeles, Adobe’s executive team will
discuss the company’s expanded growth opportunities and strategies
across each of its major businesses. As part of its presentation,
Adobe will outline numerous growth drivers and show research data
that the company’s total addressable market has expanded from
approximately $83 billion in 2020 to approximately $108 billion by
2021.
Adobe is reaffirming its current Q4 fiscal year 2018 revenue and
earnings per share targets. The company is also providing
preliminary growth targets for fiscal year 2019. These targets do
not reflect Adobe’s planned acquisition of Marketo, which the
company expects to close during Q4 fiscal year 2018.
“Our strategy of empowering people to create and transforming
how businesses compete is leading to larger addressable market
opportunities and the potential for accelerated revenue and
earnings growth,” said Shantanu Narayen, president and CEO, Adobe.
“Our 2019 growth targets reflect our continued momentum and market
leadership.”
Adobe Provides Preliminary FY2019 Growth Targets
At today’s financial analyst meeting, Adobe is providing
preliminary growth targets for its fiscal year 2019, which are
summarized in the table below.
Total Adobe revenue1
Approximately 20 percent year-over-year growth Digital Media
segment revenue Approximately 20 percent
year-over-year growth Digital Experience segment revenue
Approximately 20 percent year-over-year growth Digital Media
annualized recurring revenue (“ARR”) Approximately
$1.4 billion of net new ARR Digital Experience subscription
bookings2 Approximately 25 percent year-over-year
growth 1 Revenue targets were set based on Sept. 2018
foreign exchange (“FX”) rates, which for current planning purposes
are assumed to be constant during fiscal year 2019 2 Includes
annualized subscription value of SaaS, managed service and term
offerings under contract for Adobe Analytics Cloud, Adobe Marketing
Cloud and Magento Commerce Cloud
Adobe expects to report Q4 fiscal year 2018 financial results
and provide fiscal year 2019 revenue and earnings per share targets
on Dec. 13, 2018. These results and targets are expected to include
the impact of the acquisition of Marketo.
Adobe Reaffirms Q4 Revenue and Earnings Targets
As part of its meeting today, Adobe is affirming it is on track
to achieve Q4 fiscal year 2018 revenue of $2.42 billion. The
Company also stated it is on track to achieve its Q4 earnings per
share targets of $1.42 on a GAAP-basis, and $1.87 on a non-GAAP
basis, as well as meet other financial metrics it targeted for the
quarter. These targets do not reflect the impact of Adobe’s pending
acquisition of Marketo.
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 three hours and will be archived on Adobe's website
for approximately 45 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, the closing of the Marketo acquisition, 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,
acquire, market and offer products and services that meet customer
requirements, failure to compete effectively, introduction of new
technology, complex sales cycles, risks related to the timing of
revenue recognition from our subscription offerings, fluctuations
in subscription renewal rates, risks associated with cyber-attacks,
potential interruptions or delays in hosted services provided by us
or third parties, information security and privacy, failure to
realize the anticipated benefits of past or future acquisitions,
changes in accounting principles and tax regulations, uncertainty
in the financial markets and economic conditions in the countries
where we operate, and other various risks associated with being a
multinational corporation.
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 2017 ended Dec. 1, 2017, and Adobe's Quarterly Reports on Form
10-Q issued in fiscal year 2018.
Adobe assumes no obligation to, and does not currently intend
to, update these forward-looking statements.
About Adobe
Adobe is changing the world through digital experiences. For
more information, visit www.adobe.com.
© 2018 Adobe, Inc. All rights reserved. Adobe and the Adobe logo
are either registered trademarks or trademarks of Adobe 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 fourth quarter fiscal year 2018
GAAP earnings per share target reconciled to the non-GAAP financial
target included in this document.
Fourth
QuarterFiscal 2018 Diluted net income per share:
GAAP diluted net income per share $ 1.42 Stock-based and deferred
compensation expense 0.36 Amortization of purchased intangibles
0.10 Income tax adjustments (0.01 ) Non-GAAP diluted net income per
share $ 1.87 Shares used to compute diluted net
income per share 495.0
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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AdobeInvestor Relations ContactMike Saviage,
408-536-4416ir@adobe.comorPress
ContactDan Berthiaume, 408-536-2584dberthia@adobe.com
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