Adobe Systems Incorporated (NASDAQ:ADBE) Q4 2017 Earnings Conference Call Transcript

Dec 14, 2017 • 05:00 pm ET

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Adobe Systems Incorporated (NASDAQ:ADBE) Q4 2017 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen. I would like to welcome you to Adobe Systems Fourth Quarter Fiscal Year 2017 Earnings Conference Call. (Operator Instructions) I would like to now turn the call over to Mr. Mike Saviage, Vice President of Investor Relations. Please go ahead, sir.

Executive
Mike Saviage

Good afternoon, and thank you for joining us today. Joining me on the call are Adobe's President and CEO, Shantanu Narayen; and Mark Garrett, Executive Vice President and CFO. In our call today, we will discuss Adobe's fourth quarter and fiscal year 2017 financial results. By now, you should have a copy of our earnings press release, which crossed the wire approximately one hour ago. We've also posted PDFs of our earnings call prepared remarks and slides, financial targets and an updated investor datasheet on adobe.com. If you'd like a copy of these documents, you can go to Adobe's Investor Relations page and find them listed under Quick Links.

Before we get started, we want to emphasize that some of the information discussed on this call, particularly our revenue and operating model targets, and our forward-looking product plans, is based on information as of today, December 14, 2017. (Forward-Looking Cautionary Statements) During this call, we will discuss GAAP and non-GAAP financial measures. A reconciliation between the two is available in our earnings release and in our updated investor datasheet on Adobe's Investor Relations website. Call participants are advised that the audio of this conference call is being webcast live in Adobe Connect and is also being recorded for playback purposes. An archive of the webcast will be made available on Adobe's Investor Relations website for approximately 45 days and is the property of Adobe. The call audio and the webcast archive may not be rerecorded or otherwise reproduced or distributed without prior written permission from Adobe. I will now turn the call over to Shantanu.

Executive
Shantanu Narayen

Thanks, Mike, and good afternoon. FY '17 was another strong year for Adobe, highlighted by record Creative Cloud, Document Cloud and Experience Cloud revenue and capped off by the first ever $2 billion quarter in company history. In Q4, we delivered revenue of $2.01 billion, which represents 25% year-over-year growth. GAAP earnings per share in Q4 was $1, and non-GAAP earnings per share was $1.26. For the year, we grew total revenue to $7.3 billion, which represents 25% annual growth. GAAP earnings per share in FY '17 was $3.38, and non-GAAP earnings per share was $4.31.

Our strong results are validation of the relevance of Adobe's mission to change the world through digital experiences. That vision serves a broad and diversified set of customers, from artists, students and anyone with a story to tell to the world's most prestigious brands, media companies and institutions, all of whom are betting their future on Adobe as they embrace the opportunities of digital transformation. In Digital Media, Creative Cloud and Adobe Document Cloud are fundamental to how people and businesses communicate, entertain and engage with each other. We exited the year with more