Adobe released their Fiscal Year 2013 numbers today, and though the Q3 earnings were below expectations, Adobe seems to have rebounded in Q4 and just matched their targeted range of $1 billion to $1.05 billion, resulting an increase in stock value in after-hours trading.
Some fourth quarter financial highlights for the digital arts, marketing and media behemoth:
- Adobe achieved revenue of $1.04 billion, within its targeted range of $1 billion to $1.05 billion.
- Adobe exited Q4 with 1 million 439 thousand paid Creative Cloud subscriptions, an increase of 402 thousand when compared to the number of subscriptions as of the end of Q3 fiscal year 2013, and enterprise adoption of
- Creative Cloud was stronger than expected.
- Creative Annualized Recurring Revenue (“ARR”) grew to $768 million, and total Digital Media ARR grew to $911 million.
- Adobe Marketing Cloud quarterly revenue was $316.2 million, representing 38 percent year-over-year growth.
- Diluted earnings per share were $0.13 on a GAAP-basis, and $0.32 on a non-GAAP basis.
- Cash flow from operations was $315.0 million.
- Deferred revenue grew by $94.7 million to a record $828.8 million.
- The company repurchased 7.9 million shares during the quarter, returning approximately $405 million of cash to stockholders.
And some fiscal year notes:
- Adobe achieved revenue of $4.06 billion and generated $1.15 billion in cash flow from operations during the year.
- Creative Cloud subscriptions grew by 1.1 million and Document Services subscriptions doubled to more than 1.6 million. In addition, the company added more than $700 million in Digital Media ARR during the year.
- Adobe Marketing Cloud achieved a record $1.02 billion in annual revenue, representing 26 percent year-over-year growth.
- The company repurchased 21.6 million shares during the year, returning approximately $1 billion of cash to stockholders.
In 2012, Adobe achieved record revenue of $4.4 billion and 2013 did not break that record. Their Q4 earnings were basically the same when we look at last year. That said, despite widespread grumbling from the photographer community and a serious attack on Adobe servers that compromised customer password information, it seems that Adobe isn't feeling too hard of a pinch when it comes to cash flow and earnings as their total income fell only marginally, something that is likely to easily be made up in the coming months. It can also be inferred that the "Photographer Bundle" Adobe peddled late in November had some impact on the numbers, especially when we look at the Q3 stats as well as Adobe's extension of that bundle beyond the original date. Why they won't make it a permanent fixture in their pricing options is a mystery (despite holding it as an "ace" in their sleeve when they need to quickly infuse more cash at the end of a fiscal period).
To elaborate on more besides just financial numbers, Adobe also released this infographic (click for larger):