Adobe Inc


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SKU: ADBE Category:


Adobe has experienced another outstanding quarter because of global digital transformation. In the second quarter, its revenue grew by $3.84 billion indicating a staggering 23% year-over-year growth. One of the biggest drivers of Adobe’s recent revenue growth in its Digital Media business in both Creative Cloud and Document Cloud, achieving $2.79 billion in revenue, representing 25% year-over-year growth. Furthermore, its net new Digital Media Annualized Recurring Revenue (ARR) grew by $518 million as well as total Digital Media ARR in Q2 increased by $11.21 billion. A high ARR is very good news for investors as it indicates a strong foreseeability of future business. Adobe’s Document Cloud has also been a major growth driver and its ARR of $113 million and outstanding revenue of $469 million represented a 30% year-over-year growth. The management expects that the U.S. online spending on the upcoming Prime Day will surpass the $10.9 billion mark that Cyber Monday reached in 2020 which should all benefit the company. Despite the phenomenal runup of the stock, we maintain our ‘Outperform’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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