Adobe slashes revenue outlook due to Ukraine-Russia crisis

Adobe reported 9 percent increase in revenue to $4.26 billion in its first quarter fiscal year 2022 ended March 4, 2022.
Adobe MaxAdobe posted operating income of $1.58 billion and net income of $1.60 billion.

“Adobe achieved record Q1 revenue as Creative Cloud, Document Cloud and Experience Cloud continue to be pivotal in driving the digital economy,” said Shantanu Narayen, chairman and CEO, Adobe. “Adobe is committed to empowering individuals, transforming businesses and connecting communities.”

Adobe has generated revenue of $3.11 billion (+9 percent) from Digital Media segment, $2.55 billion (+7 percent) from creative Cloud, and $562 million (+17 percent) from Document Cloud.

Adobe Digital Media Annualized Recurring Revenue (ARR) increased $418 million quarter over quarter to $12.57 billion exiting the quarter. Creative ARR grew to $10.54 billion and Document Cloud ARR grew to $2.03 billion.

Adobe’s Digital Experience segment revenue was $1.06 billion, representing 13 percent growth, while Digital Experience subscription revenue was $932 million, representing 15 percent growth.

On March 4, 2022, Adobe announced a halt of all new sales of Adobe products and services in Russia and Belarus.

Adobe said it is reducing its Digital Media ARR balance by $75 million, which represents all ARR for existing business in Russia and Belarus.

While Adobe will continue to provide Digital Media services in Ukraine, it reduced ARR by an additional $12 million, which represents its entire Digital Media business in Ukraine. This results in a total ARR reduction of $87 million and an expected revenue impact of $75 million for fiscal year 2022.

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