• Adobe achieved revenue of $4.53 billion in its fourth quarter of fiscal year 2022, which represents 10 percent year-over-year growth or 14 percent in constant currency. Diluted earnings per share was $2.53 on a GAAP basis and $3.60 on a non-GAAP basis.
• GAAP operating income in the fourth quarter was $1.51 billion and non-GAAP operating income was $2.02 billion. GAAP net income was $1.18 billion and non-GAAP net income was $1.68 billion.
• Record cash flows from operations were $2.33 billion.
• Remaining Performance Obligations (“RPO”) exiting the quarter were $15.19 billion.
• Adobe repurchased approximately 5.0 million shares during the quarter.

Fourth Quarter Fiscal Year 2022 Business Segment Highlights

• Digital Media segment revenue was $3.30 billion, which represents 10 percent year-over-year growth or 14 percent in constant currency. Creative revenue grew to $2.68 billion, representing 8 percent year-over-year growth or 13 percent in constant currency. Document Cloud revenue was $619 million, representing 16 percent year-over-year growth or 19 percent in constant currency.
• Net new Digital Media Annualized Recurring Revenue (“ARR”) was $576 million, exiting the quarter with Digital Media ARR of $13.97 billion. Creative ARR grew to $11.60 billion and Document Cloud ARR grew to $2.37 billion.
• Digital Experience segment revenue was $1.15 billion, representing 14 percent year-over-year growth or 16 percent in constant currency. Digital Experience subscription revenue was $1.01 billion, representing 14 percent year-over-year growth or 16 percent in constant currency.

Fiscal Year 2022 Financial Highlights

• Adobe achieved revenue of $17.61 billion in fiscal year 2022, which represents 12 percent year-over-year growth or 15 percent adjusted year-over-year growth¹. Diluted earnings per share was $10.10 on a GAAP basis and $13.71 on a non-GAAP basis.
• GAAP operating income was $6.10 billion and non-GAAP operating income was $7.95 billion. GAAP net income was $4.76 billion and non-GAAP net income was $6.46 billion.
• Adobe generated a record $7.84 billion in operating cash flows during the year.
• Adobe repurchased approximately 15.7 million shares during the year.

Fiscal Year 2022 Business Segment Highlights

• Digital Media segment revenue was $12.84 billion, which represents 11 percent year-over-year growth or 16 percent adjusted year-over-year growth¹. Net new Digital Media ARR was $1.91 billion during the fiscal year.
• Creative revenue grew to $10.46 billion, representing 10 percent year-over-year growth or 14 percent adjusted year-over-year growth¹.
• Document Cloud revenue was $2.38 billion, representing 21 percent year-over-year growth or 24 percent adjusted year-over-year growth¹.
• Digital Experience segment revenue was $4.42 billion, representing 14 percent year-over-year growth or 17 percent adjusted year-over-year growth¹. Digital Experience subscription revenue was $3.88 billion, representing 15 percent year-over-year growth or 18 percent adjusted year-over-year growth¹.

Financial Targets

Adobe is providing fiscal year 2023 targets, as well as Q1 targets, which do not reflect the planned acquisition of Figma that is expected to close during 2023. These targets factor in current expectations for the macroeconomic and foreign exchange environments.

Changes to foreign exchange rates:

• Have resulted in a $712 million downward revaluation to Adobe’s total Digital Media ARR balance. As a reminder, ARR is forecasted annually at December currency rates, and currency rates are held constant through that fiscal year for measurement purposes; end-of-year actual ARR balances are revalued at new December rates for the next fiscal year; and
• Are expected to result in an approximately four percent headwind to total revenue year-over-year growth rates in fiscal year 2023.

The following table summarizes Adobe’s fiscal year 2023 targets:

The following table summarizes Adobe’s fiscal year 2023 growth targets at the midpoint:

The following table summarizes Adobe’s first quarter fiscal year 2023 targets: