ADBE share price rises more than 2% before market launch: why it happened
- Adobe Inc.’s (Nasdaq: ADBE) share price rose more than 2% before market. That’s why it happened.
Adobe Inc.’s (Nasdaq: ADBE) share price rose more than 2% before market. Investors are responding positively to the release of Adobe’s financial results for its second quarter of fiscal 2021, ending June 4, 2021.
Q2 2021 Financial Highlights
– Adobe reported quarterly revenue of $ 3.84 billion in the second quarter of fiscal 2021, representing 23% year-over-year growth. And diluted earnings per share were $ 2.32 on a GAAP basis and $ 3.03 on a non-GAAP basis.
– Digital media segment revenues were $ 2.79 billion, representing 25% year-over-year growth. And creative revenue reached $ 2.32 billion, representing a 24% year-over-year growth. Document Cloud revenue was $ 469 million, up 30% year-over-year.
– Annualized recurring digital media (“ARR”) revenue increased $ 518 million quarter over quarter to $ 11.21 billion at quarter end. And Creative ARR reached $ 9.53 billion and Document Cloud ARR reached $ 1.68 billion.
– Digital Experience segment revenue was $ 938 million, up 21% year-over-year. And Digital Experience subscription revenue was $ 817 million, up 25% year-over-year.
– GAAP operating income in the second quarter was $ 1.41 billion and non-GAAP operating income was $ 1.76 billion. And GAAP net income was $ 1.12 billion, and non-GAAP net income was $ 1.46 billion.
– Cash flow from operations reached a record $ 1.99 billion.
– Remaining Performance Obligations (RPOs) at the end of the quarter stood at $ 12.23 billion, up 23% year-over-year.
– Adobe repurchased approximately 2.1 million shares during the quarter.
Third Quarter Financial Objectives
Adobe is providing financial targets for the third quarter taking into account current macroeconomic conditions and the expected return of summer seasonality associated with June, July and August. Here is a table of Q3 targets for fiscal 2021 provided by the company:
“Adobe has had an exceptional second quarter as Creative Cloud, Document Cloud and Experience Cloud continue to transform work, learning and play in a digitally driven world. Our roadmap of innovative products and unmatched leadership in creativity, digital documents and customer experience management position us for continued success in 2021 and beyond. “
– Shantanu Narayen, President and CEO, Adobe
“Adobe delivered strong annualized recurring revenue in digital media and digital experience bookings, as well as record operating cash flow in the second quarter. The great market opportunity and momentum we are seeing in our creative, document and customer experience management activities position us well to achieve another record year. “
– John Murphy, Executive Vice President and Chief Financial Officer, Adobe
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.