Achieves Record Creative Cloud, Adobe Document Cloud and Adobe Experience Cloud Revenue in Fiscal 2017

SAN JOSE, Calif. - Adobe today reported financial results for its fourth quarter and fiscal year 2017 ended Dec. 1, 2017.

In its fourth quarter of fiscal year 2017, Adobe achieved quarterly revenue of $2.01 billion, which represents 25 percent year-over-year growth. In fiscal year 2017, Adobe achieved annual revenue of $7.30 billion, which also represents 25 percent year-over-year growth.

"Adobe delivered record revenue of $2 billion in Q4," said Shantanu Narayen, president and CEO, Adobe. "Our strong business momentum is driven by the market-leading solutions we provide to empower people to create and businesses to digitally transform.”

“Adobe achieved record annual and quarterly revenue, and the leverage in our business model once again drove record profit and earnings," said Mark Garrett, executive vice president and CFO, Adobe. “We are raising our fiscal 2018 revenue target and remain bullish about delivering strong top line and bottom line growth.”

Fourth Quarter Fiscal Year 2017 Financial Highlights

• Adobe achieved record quarterly revenue of $2.01 billion in its fourth quarter of fiscal year 2017, which represents 25 percent year-over-year growth.
• Diluted earnings per share was $1.00 on a GAAP-basis, and $1.26 on a non-GAAP basis.
• Digital Media segment revenue was $1.39 billion, with Creative and Document Cloud achieving record quarterly revenue of $1.16 billion and $235 million, respectively.
• Digital Media Annualized Recurring Revenue (“ARR”) grew to $5.23 billion exiting the quarter, a quarter-over-quarter increase of $359 million.
• Adobe Experience Cloud achieved record revenue of $550 million, which represents 18 percent year-over-year growth.
• Operating income grew 37 percent and net income grew 26 percent year-over-year on a GAAP-basis; operating income grew 37 percent and net income grew 39 percent year-over-year on a non-GAAP basis.
• Cash flow from operations was a record $833 million and deferred revenue grew to an all-time high of $2.49 billion.
• The company repurchased approximately 1.9 million shares during the quarter, returning $297 million of cash to stockholders.

Fiscal Year 2017 Financial Highlights

• Adobe achieved record annual revenue of $7.30 billion in fiscal year 2017, representing 25 percent year-over-year growth.
• The company reported annual GAAP diluted earnings per share of $3.38 and non-GAAP diluted earnings per share of $4.31.
• Digital Media segment revenue was $5.01 billion, with Creative and Document Cloud achieving record annual revenue of $4.17 billion and $837 million, respectively. Digital Media ARR grew by $1.24 billion during the year.
• Adobe Experience Cloud achieved record annual revenue of $2.03 billion, representing 24 percent year-over-year growth.
• Operating income grew 45 percent and net income grew 45 percent year-over-year on a GAAP-basis; operating income grew 40 percent and net income grew 42 percent year-over-year on a non-GAAP basis.
• Adobe generated a record $2.91 billion in operating cash flow during the year.
• The company repurchased 8.2 million shares during the year, returning $1.10 billion 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.

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