Company profile

Ticker
ADBE
Exchange
CEO
Shantanu Narayen
Employees
Incorporated in
Location
Fiscal year end
Former names
Adobe Systems Inc
SEC CIK
IRS number
770019522

ADBE stock data

(
)

Calendar

26 Jun 19
17 Sep 19
30 Nov 19

News

Company financial data Financial data

Quarter (USD) May 19 Mar 19 Nov 18 Aug 18
Revenue 2.74B 2.6B 2.46B 2.29B
Net income 632.59M 674.24M 678.24M 666.29M
Diluted EPS 1.29 1.36 1.37 1.34
Net profit margin 23.05% 25.92% 27.52% 29.08%
Operating income 749.55M 694.83M 720.55M 718.61M
Net change in cash 344.06M 96.07M -104.37M -1.24B
Cash on hand 2.08B 1.74B 1.64B 1.75B
Cost of revenue 407.49M 397.29M 359.26M 295.49M
Annual (USD) Nov 18 Nov 15 Nov 14
Revenue 9.03B 4.8B 4.15B
Net income 2.59B 629.55M 268.4M
Diluted EPS 5.2 1.24 0.53
Net profit margin 28.69% 13.13% 6.47%
Operating income 2.84B 903.1M 412.69M
Net change in cash 766.22M -240.84M
Cash on hand 1.64B 876.56M 1.12B
Cost of revenue 1.19B 744.32M 622.08M

Financial data from Adobe earnings reports

Financial report summary

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Risks
  • Our competitive position and results of operations could be harmed if we do not compete effectively.
  • If we cannot continue to develop, acquire, market and offer new products and services or enhancements to existing products and services that meet customer requirements, our operating results could suffer.
  • Introduction of new technology could harm our business and results of operations.
  • Security breaches in data centers we manage, or third parties manage on our behalf, may compromise the confidentiality, integrity, or availability of employee and customer data, which could expose us to liability and adversely affect our reputation and business.
  • We rely on data centers managed both by Adobe and third parties to host and deliver our services, as well as access, collect, process, use, transmit, and store data, and any interruptions or delays in these hosted services, or failures in data collection or transmission could expose us to liability and harm our business and reputation.
  • Increasing regulatory focus on privacy and security issues and expanding laws could impact our business models and expose us to increased liability.
  • Security vulnerabilities in our products and systems could lead to reduced revenue or to liability claims.
  • Some of our enterprise offerings have extended and complex sales cycles, which can make our sales cycles unpredictable.
  • Subscription offerings could create risks related to the timing of revenue recognition.
  • If our customers fail to renew subscriptions in accordance with our expectations, our future revenue and operating results could suffer.
  • We may not realize the anticipated benefits of past or future investments or acquisitions, and integration of acquisitions may disrupt our business and management.
  • Our business could be harmed if we fail to effectively manage critical strategic third-party business relationships.
  • We face various risks associated with our operating as a multinational corporation.
  • We are subject to risks associated with compliance with laws and regulations globally, which may harm our business.
  • Changes in accounting principles, or interpretations thereof, could have a significant impact on our financial position and results of operations.
  • Changes in tax rules and regulations, or interpretations thereof, may adversely affect our effective tax rates.
  • Uncertainty about current and future economic conditions and other adverse changes in general political conditions in any of the major countries in which we do business could adversely affect our operating results.
  • The success of some of our product and service offerings depends on our ability to continue to attract and retain customers of and contributors to our online marketplaces for creative content.
  • Our intellectual property portfolio is a valuable asset and we may not be able to protect our intellectual property rights, including our source code, from infringement or unauthorized copying, use or disclosure.
  • We may incur substantial costs defending against third parties alleging that we infringe their proprietary rights.
  • We may incur losses associated with currency fluctuations and may not be able to effectively hedge our exposure.
  • Failure of our third-party customer service and technical support providers to adequately address customers’ requests could harm our business and adversely affect our financial results.
  • Revenue, margin or earnings shortfalls or the volatility of the market generally may cause the market price of our stock to decline.
  • Contracting with government entities exposes us to additional risks inherent in the government procurement process.
  • If we are unable to recruit and retain key personnel, our business may be harmed.
  • Failure to manage our sales and distribution channels effectively could result in a loss of revenue and harm to our business.
  • If our goodwill or amortizable intangible assets become impaired, then we could be required to record a significant charge to earnings.
  • We have issued $1.9 billion of notes in debt offerings and have a $2.25 billion term loan, and may incur other debt in the future, which may adversely affect our financial condition and future financial results.
  • Catastrophic events may disrupt our business.
  • Climate change may have a long-term impact on our business.
  • Our investment portfolio may become impaired by deterioration of the financial markets.
Management Discussion
  • Our financial results for the second quarter of fiscal 2019 are presented in accordance with the new revenue standard that was adopted under the modified retrospective method at the beginning of fiscal 2019. Prior period results have not been restated which limits the comparability of our results of operations for the second quarter of fiscal 2019 when compared to the year-ago period. See Note 1 of our notes to condensed consolidated financial statements for further details about our recent adoption.
  • Our subscription revenue is comprised primarily of fees we charge for our subscription and hosted service offerings including Creative Cloud and certain of our Adobe Experience Cloud and Document Cloud services. We recognize subscription revenue ratably over the term of our agreements with customers, beginning with commencement of service.
  • We have the following reportable segments: Digital Media, Digital Experience and Publishing. Subscription revenue by reportable segment for the three and six months ended May 31, 2019 and June 1, 2018 is as follows:
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