Company Targets 20 Percent Revenue and 30 Percent Non-GAAP
Earnings CAGRs between FY2015 and FY2018
Adobe (Nasdaq:ADBE) today will host a financial analyst meeting
at its Adobe MAX user conference. At the meeting, Adobe management
will outline the company’s momentum and strategy, and discuss
multi-year financial growth targets for its business.
“Adobe is the only company that brings great content and
powerful data together, enabling millions of customers globally to
build high-impact digital experiences,” said Shantanu Narayen,
Adobe president and chief executive officer. “We are targeting 20
percent revenue and 30 percent non-GAAP earnings CAGRs between FY15
and FY18 that reflect our business momentum and growing addressable
markets.”
FY2015 – FY2018 Financial Targets
At its financial analyst meeting today, Adobe management will
discuss FY2015 through FY2018 compound annual growth rate (CAGR)
and annualized recurring revenue (ARR) targets, which are
summarized in the table below.
Total Adobe revenue
Approximately 20 percent CAGR Digital Media segment
revenue Greater than 20 percent CAGR
Digital Media ARR Greater than 20
percent CAGR Adobe Marketing Cloud revenue
Greater than 20 percent CAGR Adobe Marketing Cloud bookings
Approximately 30 percent CAGR Non-GAAP
earnings per share1 Approximately 30
percent CAGR Operating cash flow
Approximately 25 percent CAGR
1As part of its long-term growth targets, Adobe believes it can
achieve approximately 30 percent CAGR in non-GAAP diluted net
income per share. Although the information to enable Adobe to
reconcile and provide GAAP diluted net income per share targets for
those years is not available at this time, reconciling items are
expected to include, stock-based and deferred compensation expense,
amortization of purchased intangibles, investment gains and losses
and income tax adjustments.
In addition to these long-term financial targets, Adobe
management also provided market research information which
concludes the company’s total addressable market will grow to
approximately $48 billion by 2018.
FY2016 Financial Targets
Adobe also will discuss preliminary financial targets for its
fiscal year 2016, which are summarized in the table below.
Total Adobe revenue
Approximately $5.7 billion Digital Media segment revenue
Approximately 20 percent year-over-year growth
Digital Media ARR Approximately 25 percent
year-over-year growth Adobe Marketing Cloud revenue
Approximately 20 percent year-over-year growth Adobe
Marketing Cloud bookings Approximately 30
percent year-over-year growth GAAP earnings per share
Approximately $1.80 Non-GAAP earnings per share
Approximately $2.70
A reconciliation between FY2016 GAAP and non-GAAP earnings per
share targets is provided at the end of 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 5:00 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 and a half 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, revenue,
margin, earnings, annualized recurring revenue, bookings and
operating cash flow, 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 distribute products and
services that meet customer requirements, introduction of new
products and business models by competitors, failure to
successfully manage transitions to new business models and markets,
fluctuations in subscription renewal rates, risks associated with
cyber-attacks and information security, potential interruptions or
delays in hosted services provided by us or third parties,
uncertainty in economic conditions and the financial markets, 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 2014 ended Nov. 28, 2014, and Adobe's Quarterly Reports on
Form 10-Q issued in fiscal year 2015.
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.
© 2015 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
(In millions, except per share data)
The following tables show Adobe's GAAP financial targets
reconciled to non-GAAP financial targets included in this
document.
Fiscal 2016 Diluted net income per share: GAAP
diluted net income per share $ 1.80 Stock-based and deferred
compensation expense 0.78 Amortization of purchased intangibles
0.24 Income tax adjustments (0.12 ) Non-GAAP diluted net income per
share $ 2.70 Shares used to compute diluted net
income per share 510.0
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.comPublic
Relations ContactEdie Kissko, 408-536-3034kissko@adobe.com
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