Adobe Cites Creative Cloud as Major Factor in Record Revenue Growth

From Adobe:
 
Strong Cloud Product Adoption in Q1 FY2016 Fuels 25 Percent Year-over-year Revenue Growth
 
SAN JOSE, Calif. — Mar. 17, 2016 — Adobe (Nasdaq:ADBE) today reported financial results for its first quarter fiscal year 2016 ended Mar. 4, 2016.
 
First Quarter Financial Highlights
 

• Adobe achieved record quarterly revenue of $ 1.38 billion, representing year-over-year growth of 25 percent.
• Diluted earnings per share were $ 0.50 on a GAAP-basis, and $ 0.66 on a non-GAAP basis.
• Digital Media segment revenue grew by 33 percent year-over-year to a record $ 932 million, with Creative revenue growing 44 percent year-over-year to a record $ 733 million.
• Strong Creative Cloud adoption drove Digital Media Annualized Recurring Revenue (“ARR”) to $ 3.13 billion exiting the quarter, an increase of $ 246 million.
• Adobe Marketing Cloud achieved strong bookings growth, and record revenue of $ 377 million that represents year-over-year growth of 21 percent.
• Year-over-year operating income grew 78 percent and net income grew 200 percent on a GAAP-basis; operating income and net income both grew 48 percent on a non-GAAP basis.
• Cash flow from operations was $ 498 million, and deferred revenue grew to $ 1.61 billion.
• The company repurchased approximately 1.5 million shares during the quarter, returning $ 133 million of cash to stockholders.

A reconciliation between GAAP and non-GAAP results is provided here.
 
The Creative Cloud Photography Plan (Photoshop CC & Lightroom CC) is an excellent value at only $ 9.99/month and, as shown above, is a big reason for Adobe’s success right now.