Adobe Inc. (ADBE)|Q2 2023 Earnings Call Transcript Summary

1. Adobe reported strong Q2 results with revenue of $4.82 billion, representing a 10% YoY growth or 13% in constant currency.

2. The company's Digital Media segment achieved Q2 revenue of $3.51 billion, while Document Cloud revenue was $659 million and Digital Experience revenue reached $1.22 billion.

3. Adobe is targeting total revenue of $19.25 billion to $19.35 billion for fiscal 2023, with a focus on driving disciplined profitable growth and investing in new technologies.

Adobe has reported strong Q2 results, demonstrating its ability to meet demand across a diverse range of products from individuals to large enterprises. The company is growing existing businesses, delivering profitability and investing in new technologies that will revolutionize how people work and democratize access to Adobe's tools. This strategy has positioned Adobe to win in the current environment.

Adobe's Q2 revenue was $4.82 billion, representing a 10% YoY growth or 13% in constant currency. The business also achieved GAAP diluted earnings per share of $2.82, non-GAAP diluted earnings per share of $3.91, and cash flows from operations of $2.14 billion. Adobe's Digital Media segment achieved Q2 revenue of $3.51 billion, representing 10% YoY growth or 14% in constant currency. Meanwhile, Document Cloud revenue was $659 million, representing 11% YoY growth or 14% in constant currency.

Adobe's Digital Experience segment also performed well in Q2, achieving revenue of $1.22 billion, representing 12% YoY growth or 14% in constant currency. Subscription revenue for AEP and apps grew more than 60% YoY, while there was also strength in content and commerce with significant book of business growth. Momentum selling transformational deals to large enterprises, adopting Adobe's platform, and end-to-end suite of applications has also continued.

Looking ahead, Adobe has set Q3 targets, including total Adobe revenue of $4.83 billion to $4.87 billion, Digital Media net new ARR of approximately $410 million, Digital Media segment revenue of $3.55 billion to $3.57 billion, and Digital Experience segment revenue of $1.21 billion to $1.23 billion.

With a focus on driving disciplined profitable growth, Adobe has raised its annual fiscal 2023 targets for EPS and net new Digital Media ARR. It is now targeting total Adobe revenue of $19.25 billion to $19.35 billion, Digital Media net new ARR of approximately $1.75 billion, Digital Media segment revenue of $14.10 billion to $14.15 billion, and Digital Experience segment revenue of $4.85 billion to $4.90 billion.