Adbe q3 fy13-earnings-call-slides
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Transcript of Adbe q3 fy13-earnings-call-slides
2013 Adobe Systems Incorporated. All Rights Reserved.
Adobe Systems Earnings Call Q3 FY2013 Results
2013 Adobe Systems Incorporated. All Rights Reserved.
Introduction Mike Saviage, Vice President of Investor Relations
2013 Adobe Systems Incorporated. All Rights Reserved.
Financial Disclaimer
Some of the information discussed in this presentation, particularly our revenue, subscription and operating model targets, and our forward-looking product plans, is based on information as of today, September 17, 2013, and contains forward-looking statements that involve risk and uncertainty. Actual results may differ materially from those set forth in such statements.
For a discussion of these risks and uncertainties, you should review the Forward-Looking Statements Disclosure in our press release issued today, and Adobe’s SEC filings, including our annual report on Form 10-K for fiscal 2012, and our quarterly reports filed on Form 10-Q in fiscal 2013.
During this presentation, we will discuss non-GAAP financial measures. The GAAP financial measures that correspond to non-GAAP financial measures, as well as the reconciliation between the two, are available on our Website.
2013 Adobe Systems Incorporated. All Rights Reserved.
Q3 FY2013 Results Shantanu Narayen, President and CEO
2013 Adobe Systems Incorporated. All Rights Reserved.
Digital Media
Exceeded 1 million paid Creative Cloud subscriptions
Digital Media Annualized Recurring Revenue (“ARR”) grew to $655 million
Delivering a constant stream of innovation to Creative Cloud subscribers
Recently updated video tools
Adobe Anywhere
Adobe Generator
New Adobe devices to facilitate design on tablets
2013 Adobe Systems Incorporated. All Rights Reserved.
2013 Adobe Systems Incorporated. All Rights Reserved.
Digital Media (Continued)
Added single app subscription offering to Creative Cloud team
Introduced Photoshop + Lightroom subscription offering for photographers
Stronger-than-expected performance with enterprise term license agreements (“ETLAs”)
Majority of customers moving away from perpetual licenses
Continued to build momentum with Digital Publishing Suite
Surpassed 1.3 million Document Services subscriptions
2013 Adobe Systems Incorporated. All Rights Reserved.
2013 Adobe Systems Incorporated. All Rights Reserved.
Digital Marketing
Adobe Marketing Cloud achieved 28% year-over-year revenue growth
On a $1 billion run-rate in annual Adobe Marketing Cloud revenue
Completed acquisition of Neolane
Enables cross-channel campaign management
Adobe Campaign becomes sixth solution in Adobe Marketing Cloud
Strong Adobe Experience Manager performance
Major Adobe Target solution update
Adobe recognized as the digital marketing leader by industry analysts
2013 Adobe Systems Incorporated. All Rights Reserved.
Q3 FY2013 Financial Results Mark Garrett, Executive Vice President and CFO
2013 Adobe Systems Incorporated. All Rights Reserved.
Q3 FY2013
Revenue $995.1 million
EPS GAAP: $0.16 Non-GAAP: $0.32
Q3 FY2013 Results
Quarter Highlights
Strong Adobe Marketing Cloud revenue growth
Exceeded 1 million Creative Cloud subscriptions
Exited with approximately $655 million of Digital Media ARR driven by overachievement in Creative Cloud subscriptions and ETLAs
Exited with 41% of Q3 revenue as recurring, up from 35% in Q2 FY13
2013 Adobe Systems Incorporated. All Rights Reserved.
Digital Media Results – Creative Cloud
Achieved total Digital Media revenue of $637 million in Q3
Exited Q3 with 1 million 31 thousand paid Creative Cloud individual and team subscriptions
Increase of 331 thousand net new subscriptions
Achieved Creative ARR of $546 million, an increase of $191 million Q/Q
Metric Q1
FY13 Q2
FY13 Q3
FY13
Total paid subscriptions exiting the quarter (thousands) 479 700 1,031
Creative ARR (millions) $233 $355 $546
Percentage on Annual (vs. month-to-month) 92% 93% 95%
Percentage with full Creative Cloud (vs. point products) 81% 81% 81%
2013 Adobe Systems Incorporated. All Rights Reserved.
Digital Media Results – Document Services
Achieved Document Services revenue of $183 million in Q3
Success driven by continued adoption of Acrobat, Acrobat ETLAs, Acrobat cloud services and our EchoSign e-signing solution
Grew Document Services ARR from $84 million exiting Q2 to $109 million exiting Q3
Reader Acrobat Forms Central EchoSign
2013 Adobe Systems Incorporated. All Rights Reserved.
Digital Marketing Results
Achieved Adobe Marketing Cloud year-over-year revenue growth of 28%
Adobe Marketing Cloud revenue of $255 million included $6 million from the acquisition of Neolane
Neolane becomes our sixth Adobe Marketing Cloud solution and enhances our ability to drive larger customer engagements
(Millions)
Business Segment Q3 FY12 Q2 FY13 Q3 FY13
Digital Marketing Segment $263.7 $285.4 $311.7
Adobe Marketing Cloud $199.0 $229.6 $254.9
LiveCycle + Web Conferencing $64.7 $55.8 $56.8
2013 Adobe Systems Incorporated. All Rights Reserved.
Q3 FY2013 Results (continued)
Experienced stable demand across our major geographies
Net sequential quarterly currency decrease to revenue considering hedging gains was $7.4 million
Net year-over-year currency decrease to revenue considering hedging gains was $15.2 million
Americas 54%
EMEA 26%
ASIA 20%
Q3 Revenue by Geography
2013 Adobe Systems Incorporated. All Rights Reserved.
Q3 FY2013 Results (continued)
12,035 employees
Trade DSO of 48 days
Cash flow from operations was $216 million
Record deferred revenue of $734 million
Cash and short-term investments of $3.16 billion
Repurchased approximately 7 million shares
2013 Adobe Systems Incorporated. All Rights Reserved.
Financial Targets September 17, 2013
Q4 FY2013 Targets
Revenue $1 billion to $1.050 billion
Earnings per share GAAP: $0.09 – $0.15 Non-GAAP: $0.28 – $0.34
The information discussed on this slide contains forward looking statements that involve risk and uncertainty. Actual results may differ materially. For a discussion of these risks and uncertainties, you should review Adobe’s SEC filings. Please see our website for a detailed reconciliation between GAAP and non-GAAP targets.
Expect total Digital Media ARR to be approximately $875 million exiting Q4
Expect to add slightly more Creative Cloud paid subscriptions than what was achieved in Q3 and continued strength with ETLA adoption
Assuming the midpoint of our targeted Q4 revenue range:
Expect Digital Media reported revenue to be down sequentially
Targeting Adobe Marketing Cloud year-over-year revenue growth of ~35%
Expect LiveCycle and Connect revenue to be relatively flat quarter-over-quarter
Expect Print & Publishing revenue to decline sequentially
2013 Adobe Systems Incorporated. All Rights Reserved.
Wrap-Up Mike Saviage, Vice President of Investor Relations
2013 Adobe Systems Incorporated. All Rights Reserved.
Conference Call Archive and Replay
Follow Adobe on Twitter and through our corporate blogs @Adobe @Adobe_IR http://blogs.adobe.com/conversations Earnings call archive http://www.adobe.com/ADBE Available for approximately 45 days Conference call phone replay 1-855-859-2056 (US) 1-404-537-3406 (International) Conference ID #42772158 Available 4pm PT on September 17, 2013 through 4pm PT on September 20, 2013
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Q&A
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