Adobe recently will host a financial analyst meeting at its Adobe MAX user conference with investors and financial analysts.
At a recent meeting, Adobe will outline the company’s momentum, opportunities and strategy across each of its major businesses. As part of their presentations, Adobe executives will present market research information which indicates the company’s total addressable market has expanded to approximately $64 billion by 2019. The Company is also providing preliminary financial targets for fiscal year 2017, and is commenting on both its current Q4 FY2016 outlook and its long-term financial targets.
“Adobe's vision for delivering the world's greatest digital experiences, through our Creative Cloud, Document Cloud and Marketing Cloud solutions, continues to expand our long-term growth opportunities,” said Shantanu Narayen, Adobe president and chief executive officer.
Adobe Provides Preliminary FY2017 Financial Targets
At today’s financial analyst meeting, Adobe is providing preliminary financial targets for its fiscal year 2017, which are summarized in the table below.
|Total Adobe revenue||Approximately $7 billion (~20 percent year-over-year growth)|
|Digital Media segment revenue||Approximately 20 percent year-over-year growth|
|Digital Media Annualized Recurring Revenue (“ARR”)||Approximately 25 percent year-over-year growth|
|Adobe Marketing Cloud revenue||Approximately 20 percent year-over-year growth|
|Adobe Marketing Cloud Annual Subscription||Approximately 30 percent year-over-year growth|
|Value (“ASV”) bookings|
|GAAP earnings per share||Approximately $2.85|
|Non-GAAP earnings per share||Approximately $3.75|
A reconciliation between FY2017 GAAP and non-GAAP earnings per share targets is provided at the end of this news release.
Adobe Reaffirms Financial Targets
Adobe stated it expects to achieve Q4 FY2016 revenue in its targeted range of $1.55 billion to $1.60 billion. The Company also stated it is on track to achieve earnings per share within its targeted ranges which were $0.60 to $0.66 on a GAAP-basis, and $0.83 to $0.89 on a non-GAAP basis.
The Company also expects to meet or exceed its FY2015 through FY2018 compound annual growth rate (“CAGR”) targets, which are summarized in the table below.
|Total Adobe revenue||Approximately 20 percent CAGR|
|Digital Media segment revenue||Greater than 20 percent CAGR|
|Digital Media ARR||Greater than 20 percent CAGR|
|Adobe Marketing Cloud revenue||Greater than 20 percent CAGR|
|Adobe Marketing Cloud ASV bookings||Approximately 30 percent CAGR|
|Non-GAAP earnings per share1||Approximately 30 percent CAGR|
|Operating cash flow||Approximately 25 percent CAGR|
As part of its long-term growth targets, Adobe believes it can achieve approximately 30 percent CAGR in non-GAAP diluted net earnings per share. Although the information to enable Adobe to reconcile and provide GAAP diluted earnings per share targets for those years is not available at this time, reconciling items are expected to include, stock-based and deferred compensation expense, amortization of purchased intangibles, investment gains and losses and income tax adjustments.
Adobe to Webcast Financial Analyst Meeting
Adobe will webcast its meeting with financial analysts and investors in attendance at Adobe MAX beginning at 5:00 p.m. Eastern Time today. People can access the webcast and slides from this event from the Adobe Investor Relations webpage at http://www.adobe.com/ADBE. The live video webcast will last approximately three hours and will be archived on Adobe's website for approximately 30 days. There will be no phone dial-in capability.
For a discussion of these and other risks and uncertainties, please refer to Adobe’s Annual Report on Form 10-K for our fiscal year 2015 ended Nov. 27, 2015, and Adobe's Quarterly Reports on Form 10-Q issued in fiscal year 2016.
Adobe assumes no obligation to, and does not currently intend to, update these forward-looking statements.