Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen kkkkkkkkkayd for the clue delivery! CTOnews.com Sept. 16 news, Adobe today announced the third quarter of fiscal 2022 results. Adobe's revenue in the third quarter was $4.433 billion (about 30.854 billion yuan), up 13% from $3.935 billion in the same period last year, and a record 15% year-on-year increase, excluding exchange rate changes, according to the report.

Third-quarter net profit was $1.136 billion (about 7.907 billion yuan), down 6% from $1.212 billion in the same period last year; excluding some one-time items (excluding GAAP), Adobe's adjusted net profit for the third quarter was $1.595 billion (about 11.101 billion yuan), compared with $1.496 billion in the same period last year.

Adobe's third-quarter revenue and adjusted earnings at some point exceeded Wall Street analysts' expectations, and the outlook for adjusted earnings per share for the fourth quarter also exceeded expectations, but the outlook for fourth-quarter revenue fell short of expectations.

Adobe shares closed down nearly 17% on Thursday after announcing a $20 billion cash-and-stock acquisition of American design software company Figma. After the results, the company's shares fell more than 1 per cent in after-hours trading.

Main achievements:

For the quarter ended September 2, Adobe's net profit was $1.136 billion, down 6% from $1.212 billion in the same period last year, and diluted earnings per share were $2.42, compared with $2.52 per share in the same period last year.

Excluding certain one-time items (not in accordance with GAAP), Adobe's adjusted net income for the third quarter was $1.595 billion, compared with $1.496 billion in the same period last year, and adjusted earnings per share were $3.40, compared with $3.11 in the same period last year, beating analysts' expectations. On average, 23 analysts had expected Adobe to earn $3.33 a share in the third quarter, according to data provided by Yahoo Finance.

Adobe's third-quarter revenue was $4.433 billion, up 13% from $3.935 billion in the same period last year, and a record 15% year-on-year increase, excluding currency changes, which also slightly beat analysts' expectations. On average, 20 analysts had expected Adobe's third-quarter revenue to reach $4.43 billion, according to Yahoo Finance.

By business unit, Adobe's third-quarter subscription revenue was $4.128 billion, compared with $3.657 billion in the same period last year; product revenue was $126 million, compared with $119 million in the same period last year; and services and other revenue was $179 million, compared with $159 million in the same period last year.

In terms of digital services:

Revenue from Adobe's digital media business in the third quarter was $3.23 billion, up 13% from the same period last year, and 16% year-on-year, excluding currency changes. Of this total, revenue from the creative business was US $2.63 billion, an increase of 11% compared with the same period last year, and 14% year-on-year growth excluding exchange rate changes, while revenue from the document cloud business was US $607 million, an increase of 23% over the same period last year. Excluding exchange rate changes, the growth rate was 25%.

Revenue from Adobe's digital experience business was $1.12 billion in the third quarter, up 14 per cent from the same period last year and 15 per cent year-on-year, excluding currency changes. Of this total, revenue from the digital experience subscription business was $981 million, up 14 per cent from the same period last year, or 15 per cent year-on-year, excluding exchange rate changes.

Other financial information:

Adobe's total revenue cost in the third quarter was $546 million, compared with $467 million in the same period last year. Of this total, the revenue cost of the subscription business was $413 million, compared with $344 million for the same period last year; the revenue cost of the product business was $8 million, compared with $10 million for the same period last year; and the revenue cost of services and other businesses was $125 million, compared with $113 million for the same period last year.

Adobe's third-quarter gross profit was $3.887 billion, compared with $3.468 billion in the same period last year.

Adobe's third-quarter operating profit was $1.484 billion, compared with $1.441 billion in the same period last year. Excluding certain one-time items (not in accordance with GAAP), Adobe's adjusted operating profit for the third quarter was $1.955 billion, compared with $1.811 billion in the same period last year.

Adobe's total operating expenses in the third quarter were $2.403 billion, compared with $2.027 billion in the same period last year. Of this total, R & D expenditure was $775 million, compared with $651 million in the same period last year; sales and marketing expenses were $1.266 billion, compared to $1.068 billion in the same period last year; general and administrative expenses were $319 million, compared with $265 million in the same period last year; amortization of acquired intangible assets was $4300, unchanged from the same period last year.

In the third quarter, Adobe bought back about 5.1 million shares of the company. Adobe's cash flow from business operations in the third quarter was $1.7 billion.

At the end of the third quarter, Adobe's remaining performance obligations were $14.11 billion.

Performance outlook:

Adobe expects revenue of $4.52 billion in the fourth quarter of fiscal 2022, but the outlook falls short of analysts' expectations. Among them, the revenue of the digital media department is expected to grow by 10% year-on-year, 14% excluding exchange rate changes, $550 million in annual recurrent revenue from digital media, and 13% year-on-year revenue from the digital experience division. 15% year-on-year growth excluding exchange rate changes Digital experience subscription revenue is expected to grow by 13 per cent year-on-year, with 15 per cent year-on-year growth excluding exchange rate changes.

On average, 19 analysts had expected Adobe's fourth-quarter revenue to reach $4.58 billion, according to Yahoo Finance.

Adobe also expects a tax rate of 23.0% under GAAP in the fourth quarter of fiscal 2022, 17.5% without GAAP, $2.44 per share and $3.50 per share without GAAP, exceeding analysts' expectations.

On average, 23 analysts had expected Adobe's earnings per share in the fourth quarter to reach $3.45, according to data provided by Yahoo Finance.

Changes in stock prices:

Adobe shares fell $62.39, or 16.79%, to $309.13 in regular Nasdaq trading. Adobe shares fell another $4.03, or 1.30 per cent, to $305.10 in after-hours trading as of 06:10 est on Thursday (06:10 Beijing time on Friday). In the past 52 weeks, the highest price for Adobe is $699.54 and the lowest price is $305.00.

Last night, Adobe announced that it had signed a final acquisition agreement with start-up Figma to buy Figma, a start-up that develops "online design collaboration tools", for about $20 billion in cash and stock.

Adobe expects the deal to close in 2023. After the deal was completed, Dylan Field, co-founder and CEO of Figma, continued to lead the Figma team, reporting to David Wadhwani, president of Adobe's digital media business. The two companies will continue to operate independently until the deal is completed.

CTOnews.com learned that Adobe's second-quarter revenue was $4.386 billion, a record, up 14% from $3.835 billion in the same period last year, up 15% year-on-year, excluding exchange rate changes, and net profit of $1.178 billion, up 6% from $1.116 billion in the same period last year Adjusted net profit, not in accordance with GAAP, was $1.585 billion, compared with $1.456 billion in the same period last year.

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