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    Adobe Reports Record Q2 Revenue

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    lightroomclassicbig 728x462 - Adobe Reports Record Q2 Revenue

    Achieves 25 Percent Year-Over-Year Growth with Strong Creative, Adobe Document Cloud and Adobe Experience Cloud Revenue

    SAN JOSE, Calif.–Adobe today reported financial results for its second quarter fiscal year 2019 ended May 31, 2019.

    Q2 FY2019 Financial Highlights

    • Adobe achieved record quarterly revenue of $2.74 billion in its second quarter of fiscal year 2019, which represents 25 percent year-over-year growth. Diluted earnings per share was $1.29 on a GAAP-basis, and $1.83 on a non-GAAP basis.
    • Digital Media segment revenue was $1.89 billion, which represents 22 percent year-over-year growth. Creative revenue grew to $1.59 billion and Document Cloud achieved revenue of $296 million. Digital Media Annualized Recurring Revenue (“ARR”) grew to $7.47 billion exiting the quarter, a quarter-over-quarter increase of $406 million. Creative ARR grew to $6.55 billion, and Document Cloud ARR grew to $921 million.
    • Digital Experience segment revenue was $784 million, representing 34 percent year-over-year growth.
    • GAAP operating income in the second quarter was $750 million, and non-GAAP operating income was $1.05 billion. GAAP net income was $633 million, and non-GAAP net income was $901 million.
    • Cash flow from operations was $1.11 billion.
    • Remaining Performance Obligation was $8.37 billion.
    • Adobe repurchased approximately 2.5 million shares during the quarter.

    A reconciliation between GAAP and non-GAAP results is provided at the end of this press release and on Adobe’s website.

    Executive Quotes

    “Adobe's continued momentum is being fueled by the explosion of creativity across the globe and the widespread business transformation agenda to deliver engaging customer experiences,” said Shantanu Narayen, president and CEO, Adobe. “With an innovative technology platform, exciting product roadmap and strong ecosystem of partners, we are well positioned for the second half of FY19 and beyond.”

    “Adobe delivered another record quarter in Q2,” said John Murphy, executive vice president and CFO, Adobe. “Highlights include 25 percent year-over-year revenue growth, strong net new Digital Media ARR and operating cash flow of $1.11 billion.”

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    49 comments

    1. Continue reading...
      Yep in the short run price gauging works, in the long run they will loose me as a hobbyist customer.. It's getting way too expensive, and the moment they decide to increase subscription prices, I will be going to follow the way of Joseph Christina leave them behind and BUY some of the competitive software
    3. So I'm guessing that this is before the final bill from their spat with Dolby? I guess it's still in the courts so final compensation isn't yet clear. Don't get me wrong, I still use the software as it's the best I've used for my needs, but this is getting handled poorly on Adobe's part.

      I believe they have a licensing agreement with Dolby for inclusion of some Dolby IP in Adobe software, but Adobe didn't disclose accurate user numbers for royalty payment. I think this was one of the reasons Adobe just told users to upgrade or maybe get sued by Dolby - the people using legacy software sold by Adobe with Dolby IP where no royalty was paid by Adobe are at risk of getting sued. You'd think that if the company is seeing very strong financial performance, they could work out a royalty payment for the legacy software they sold rather than warning paying customers of possible litigation from Dolby. That is how users get alienated.
    6. Let's save some valuable internet space here.

      Adobe is an evil monopoly and needs to be broken up.
      I'm not going to rent software.
      I don't trust the cloud.
      I'm going to use CS 6 until they pry it out of my cold, dead hands.
      There is other software that is cheaper.
      I don't use every feature, why should I have to pay for it?
      You mean I'm supposed to pay for software?
      They haven't added anything I want since 1998.
      They promised me they would never raise their price and now they might raise it.

      There. I've just saved everyone a dozen internet pages.

      You can all go back to arguing about lens flange distances.
    7. Well done Adobe. They’ve cornered the market and are exploiting it. For photographers 12 months of hard working R&D have delivered a texture slider.
      Great opportunities for their much smaller competitors. There are a lot of potential customers available if a good alternative is available at s good price.
    8. I don’t feel ripped off or exploited. I actually think >$8 a month is a very good deal for what I get, constantly updated professional software that does way more than I ever need.

      Compared to the other monthly payments I make Adobe is the least expensive and I need LR/PS a darn sight more than I need the finale to GoT!
    9. Anybody else notice a big performance hit in the latest feature upgrade to Lightroom Classic? I like the new texture slider but I've experience a significant slowdown in the develop module. If I start with a high MP file, drop a few gradients, do a few small clones and then apply dehaze, texture and sharpeing I'm now getting significant lag. I might try deleting the app and reinstalling. Optimizing the catalog doesn't seem to help.
    10. Anybody else notice a big performance hit in the latest feature upgrade to Lightroom Classic? I like the new texture slider but I've experience a significant slowdown in the develop module. If I start with a high MP file, drop a few gradients, do a few small clones and then apply dehaze, texture and sharpeing I'm now getting significant lag. I might try deleting the app and reinstalling. Optimizing the catalog doesn't seem to help.
      I haven’t but I am working on a laptop with smart previews stored internally and the original file stored externally and only attached if I need it to be. Basically the only thing I won’t do at 1/4 resolution on a 27” monitor is sharpen.
    11. I haven’t but I am working on a laptop with smart previews stored internally and the original file stored externally and only attached if I need it to be. Basically the only thing I won’t do at 1/4 resolution on a 27” monitor is sharpen.
      I haven't but then I have just build myself a new PC with 32 GB ram
    13. I haven’t but I am working on a laptop with smart previews stored internally and the original file stored externally and only attached if I need it to be. Basically the only thing I won’t do at 1/4 resolution on a 27” monitor is sharpen.
      I always want things to run faster but it really hasn't been a problem until the last update. Lightroom always seems to bog down after a major feature update and then they sort it out with a few minor performance fixes. The hardware is fine as far as I know but I am working at full resolution on a 5K monitor. I don't usually bother with smart previews but maybe I'll try that if re-installing doesn't help. I have some large files that were unworkable until I down-sampled them in photoshop before importing into lightroom. I've never had to do that.
    14. In a professional environment Adobe plans are priced pretty competitively. Subscriptions mean everyone is running the latest software so collaborations and cross system file sharing is easy. It also helps manage cashflow. Studios who work with freelancers often had to buy full versions every year which could be a big expense when you're multiplying the expense for multiple people, and it was hard of freelancers too who often had to finance the software every year to be able to work or collaborate with particular companies.

      I am moving from Lightroom classic to Lightroom CC because I can edit and access the same image on my phone, iPad, laptop and desktop. Editing Raws on my iPad while travelling is great. I've had multiple times where I've wanted to show a client an image the was on my desktop and I have been able to show them lightroom files from my phone. For what? $20 something dollars per month for PS, LR, LR CC plus other smaller apps with 1TB of storage. That's pretty fucking cool. (Admittedly I still use CS6 for indesign and Illustrator).

      I get that it can be difficult for amateurs and hobbyists, but the truth is you're not their target audience. They have lite versions like adobe photoshop/premier elements, lightroom as a stand alone version and the photography plans (which is excellent value compared to the past), but to expect the full package at hobbyist prices is pretty absurd.

      Remember when a full license for Adobe CS6 design standard (Photoshop, Illustrator and indesign) was about $1400 and the full suite was $3k? is this the model that people want to go back to?

      My primary job is in architecture and programs like Archicad and Revit can cost upwards of $8k and you still have to pay $1000's more to update every year.
    15. Here in Australia I received just yesterday my Photography Plan renewal. Based on what I'd heard recently I expected another round of increase, followed by me cancelling, followed by receiving a reduced offer which I'd accept.
      However the rate seems to have decreased from AUD14.29/mth to AUD12.99
      If anything the xchg rate is probably worse than LY, so I'm a bit surprised. Anyone else from Oz had the same??
    16. Yep in the short run price gauging works, in the long run they will loose me as a hobbyist customer.. It's getting way too expensive, and the moment they decide to increase subscription prices, I will be going to follow the way of Joseph Christina leave them behind and BUY some of the competitive software
      I have already shifted to alternative raw editor and organisers.
    17. Here in Australia I received just yesterday my Photography Plan renewal. Based on what I'd heard recently I expected another round of increase, followed by me cancelling, followed by receiving a reduced offer which I'd accept.
      However the rate seems to have decreased from AUD14.29/mth to AUD12.99
      If anything the xchg rate is probably worse than LY, so I'm a bit surprised. Anyone else from Oz had the same??
      I heard they seem to offer different offers to different people
    18. Yep in the short run price gauging works, in the long run they will loose me as a hobbyist customer.. It's getting way too expensive, and the moment they decide to increase subscription prices, I will be going to follow the way of Joseph Christina leave them behind and BUY some of the competitive software
      How long have you been a disciple of J. Christina?

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