Adobe reports strong q1 fy2015 financial results
San jose, calif.--(business wire)--adobe (nasdaq:adbe) today reported financial results for its first quarter fiscal year 2015 ended feb. 27, 2015. financial highlights adobe achieved revenue of $1.11 billion, above the high end of the targeted range of $1.05 billion to $1.10 billion. adobe added 517 thousand net new creative cloud subscriptions in the quarter, which represents 28 percent year-over-year growth when compared to net new subscription additions in q1 fiscal year 2014. creative annualized recurring revenue (“arr”) grew to $1.79 billion, and total digital media arr grew to $2.09 billion. adobe marketing cloud revenue was $311 million. diluted earnings per share were $0.17 on a gaap-basis, and $0.44 on a non-gaap basis. cash flow from operations was $183 million and deferred revenue grew to a record $1.18 billion. a record 70 percent of adobe’s q1 revenue was from recurring sources, compared to 52 percent of q1 revenue in fiscal 2014. the company repurchased approximately 2.4 million shares during the quarter, returning $174 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 "adobe marketing cloud and creative cloud continue to be growth engines for adobe," said shantanu narayen, adobe president and chief executive officer. "we are excited about today's announcement of the adobe document cloud, which brings innovative new capabilities, including built-in e-signing, to millions of customers." “fiscal 2015 is off to a strong start, and q1 revenue and earnings are evidence of successful execution against our strategy,” said mark garrett, adobe executive vice president and chief financial officer. adobe to webcast earnings conference call adobe will webcast its first 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 and capabilities and the strength of our cloud business and growth of our revenue and earnings, 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. 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 feb. 27, 2015, which adobe expects to file in march 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) 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. three monthsended 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.
