Adobe beats Q2 expectations with growth across core clouds

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Stephanie Condon

By

Stephanie Condon

for Between the Lines

| June 17, 2021 — 20:21 GMT (21:21 BST)

| Topic: Cloud

Adobe on Thursday published its second quarter financial results, beating top- and bottom-line expectations. The quarter delivered solid growth in Adobe’s three core clouds: Creative, Document and Experience. 

Non-GAAP diluted earnings per share came to $3.03 on revenue of $3.84 billion, which represents 23 percent year-over-year growth. 

Analysts were expecting earnings of $2.81 per share on revenue of $3.73 billion.

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Adobe

“Adobe had an outstanding second quarter as Creative Cloud, Document Cloud and Experience Cloud continue to transform work, learn and play in a digital-first world,” CEO Shantanu Narayen said in a statement. “Our innovative product roadmap and unparalleled leadership in creativity, digital documents and customer experience management position us for continued success in 2021 and beyond.” 

The company’s Digital Media segment brought in $2.79 billion, which represents 25 percent year-over-year growth. Within that segment, Creative revenue grew to $2.32 billion, representing 24 percent year-over-year growth. Document Cloud revenue was $469 million, representing 30 percent year-over-year growth. 

Digital Media Annualized Recurring Revenue (ARR) increased $518 million quarter-over-quarter to $11.21 billion exiting the quarter. Creative ARR grew to $9.53 billion and Document Cloud ARR grew to $1.68 billion. 

The Digital Experience segment brought in revenue of $938 million, representing 21 percent year-over-year growth. Digital Experience subscription revenue was $817 million, representing 25 percent year-over-year growth. 

For the third quarter, Adobe is giving a revenue outlook of approximately $3.88 billion.

Analysts are expecting $3.83 billion in revenue for Q3.

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Stephanie Condon

By

Stephanie Condon

for Between the Lines

| June 17, 2021 — 20:21 GMT (21:21 BST)

| Topic: Cloud