Adobe reports record revenue
San jose, calif.--(business wire)--adobe (nasdaq:adbe) today reported financial results for its second quarter fiscal year 2015 ended may 29, 2015. quarterly financial highlights adobe achieved record quarterly revenue of $1.16 billion. digital media annualized recurring revenue (“arr”) grew to $2.35 billion exiting the quarter, driven by an increase in creative arr of $230 million to $2.02 billion. adobe marketing cloud achieved revenue of $327 million. diluted earnings per share were $0.29 on a gaap-basis, and $0.48 on a non-gaap basis. year-over-year, operating income grew 43 percent and net income grew 67 percent on a gaap-basis; operating income grew 28 percent and net income grew 30 percent on a non-gaap basis. cash flow from operations was $471 million, and deferred revenue grew to an all-time high of $1.23 billion. the company repurchased approximately 2.6 million shares during the quarter, returning $200 million 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. executive quotes "strong execution against our creative cloud, document cloud and marketing cloud businesses drove record revenue," said shantanu narayen, adobe president and chief executive officer. "we are accelerating the pace of innovation in our cloud offerings and are thrilled to be launching our best creative cloud release to date, which includes adobe stock – our new stock content service." “with our business model transition largely behind us, the positive financial benefits are now reflected in our p&l,” said mark garrett, adobe executive vice president and chief financial officer. “we are driving more profit, earnings per share, cash flow and deferred revenue and unbilled backlog.” adobe to webcast earnings conference call adobe will webcast its second quarter fiscal year 2015 earnings conference call today at 2:00 p.m. pacific time from its investor relations website: www.adobe.com/adbe. earnings documents, including adobe management’s prepared conference call remarks with slides, financial targets and an investor datasheet are posted to adobe’s investor relations website in advance of the conference call for reference. a reconciliation between gaap and non-gaap earnings results and financial targets is also provided on the website. forward-looking statements disclosure this press release contains forward-looking statements, including those related to business momentum, product innovation, the success of our new stock image service, adobe stock, and capabilities and the strength of our cloud business and growth of our revenue, earnings, cash flow, deferred revenue and unbilled backlog, 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. the financial information set forth in this press release reflects estimates based on information available at this time. these amounts could differ from actual reported amounts stated in adobe’s quarterly report on form 10-q for our quarter ended may 29, 2015, which adobe expects to file in june 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, the adobe logo and creative cloud 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. condensed consolidated statements of income (in thousands, except per share data; unaudited) condensed consolidated balance sheets (in thousands, except par value; unaudited) may 29, 2015 condensed consolidated statements of cash flows (in thousands; unaudited) non-gaap results (in thousands, except per share data) the following tables show adobe's gaap results reconciled to non-gaap results included in this release. non-gaap results ended 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, loss contingencies 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.
