Adobe Inc. (NASDAQ:ADBE) Q4 2019 Earnings Conference Call - Final Transcript

Dec 12, 2019 • 05:00 pm ET


Adobe Inc. (NASDAQ:ADBE) Q4 2019 Earnings Conference Call - Final Transcript


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Good afternoon. I would like to welcome you to Adobe Fourth Quarter Fiscal Year 2019 Earnings Conference Call.

All participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be provided at that time. As a reminder, today's call is being recorded.

I would like to now turn the call over to Mr. Mike Saviage, Vice President of Investor Relations. Please go ahead, sir.

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 John Murphy, Executive Vice President and CFO.

In our call today, we will discuss Adobe's fourth quarter and fiscal year 2019 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, and an updated investor datasheet on If you would 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 in this call, particularly our revenue and operating model targets, and our forward-looking product plans, is based on information as of today, December 12, 2019, 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 the earnings press release we issued today, as well as Adobe's SEC filings.

On this call, we will discuss GAAP and non-GAAP financial measures. A reconciliation between the two is available in our earnings release and on Adobe's Investor Relations website.

Call participants are advised that the audio of this conference call is being webcast live, 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 re-recorded, or otherwise reproduced or distributed without prior written permission from Adobe.

I'll now turn the call over to Shantanu.

Shantanu Narayen

Thanks, Mike and good afternoon.

Fiscal 2019 was a phenomenal year for Adobe as we exceeded $11 billion in revenue, a significant milestone for the Company. Our record revenue and EPS performance in 2019 makes us one of the largest, most diversified and profitable software companies in the world.

Total Adobe revenue was $11.17 billion in FY '19, which represents 24% annual growth. GAAP earnings per share in FY '19 was $6, and non-GAAP earnings per share was $7.87. We closed the year with another record quarter, delivering Q4 revenue of $2.99 billion, representing 21% year-over-year growth. GAAP earnings per share for the quarter was $1.74, and non-GAAP earnings per share was $2.29.

Our strategy to unleash creativity for all, accelerate document productivity and power digital businesses is significantly