Adobe Outlines Growth Strategy at Adobe MAX

Thursday, October 19, 2017

Press release from the issuing company

Company Provides Preliminary Financial Targets for Fiscal Year 2018 at Financial Analyst Briefing

LAS VEGAS - Adobe Systems Incorporated (Nasdaq:ADBE) today will host a financial analyst briefing with investors and financial analysts at its Adobe MAX user conference.

At today’s meeting in Las Vegas, Adobe’s CEO and CFO will outline the company’s momentum, opportunities and strategies across each of its major businesses. As part of their presentations, Adobe will review market research information which indicates the company’s total addressable market has expanded to approximately $83 billion by 2020. The Company is also providing preliminary financial targets for fiscal year 2018, and is reaffirming its current Q4 fiscal year 2017 revenue and earnings per share targets.

“Adobe’s vision has never been more clear or more relevant – to empower people and businesses to design and deliver amazing digital experiences,” said Shantanu Narayen, president and CEO, Adobe. “The FY2018 targets we are providing today include revenue growth of 20 percent and earnings growth of 30 percent, and reflect our continued momentum and leadership.”

Adobe Provides Preliminary FY2018 Financial Targets

At today’s financial analyst meeting, Adobe is providing preliminary financial targets for its fiscal year 2018, which are summarized in the table below.

			Total Adobe revenue¹		Approximately $8.7 billion (~20 percent year-over-year growth)
			Digital Media segment revenue		Approximately 23 percent year-over-year growth
			Adobe Experience Cloud subscription revenue²		Approximately 20 percent year-over-year growth
			Adobe Experience Cloud total revenue		Approximately 15 percent year-over-year growth
			GAAP earnings per share		Approximately $4.40
			Non-GAAP earnings per share		Approximately $5.50
			Digital Media Annualized Recurring Revenue (“ARR”)		Approximately $1 billion of net new ARR
			Adobe Experience Cloud bookings³		Approximately 20 percent year-over-year growth

			¹ Revenue and earnings per share targets were set based on September 2017 foreign exchange (“FX”) rates forward adjusted to mid-2018, which for current planning purposes are assumed to be constant during fiscal year 2018
			² Includes revenue from SaaS, managed service and term offerings for Adobe Analytics Cloud and Adobe Marketing Cloud, as well as total revenue for Adobe Advertising Cloud
			³Includes annualized subscription value of SaaS, managed service and term offerings under contract for Adobe Analytics Cloud and Adobe Marketing Cloud

A reconciliation between FY2018 GAAP and non-GAAP earnings per share targets is provided later in this press release.

Adobe Reaffirms Q4 Revenue and Earnings Targets

Adobe stated it is on track to achieve Q4 FY2017 revenue of $1.95 billion. The Company also stated it is on track to achieve its Q4 earnings per share targets of $0.86 on a GAAP-basis, and $1.15 on a non-GAAP basis.

A reconciliation between GAAP and non-GAAP earnings per share targets is provided later in this press release.

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