Strong Q2 FY2015 Profit Growth Driven by Cloud Momentum; Creative ARR Tops $2 Billion

SAN JOSE, Calif. - 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.