CLAIM #3916 · Adobe Systems Incorporated (ADBE) · 2021Q3 earnings call · Sep 21, 2021 · due Dec 31, 2021
“But we expect those expenses to come back in a Phase reentering out maybe a little slower than we originally thought when we talked about the second half,”
John Murphy · CFO
How to check this claim
Look at: Operating margin (non-GAAP), quarterly
It came true if: Q4 FY2021 non-GAAP operating margin lower than Q3 FY2021 non-GAAP operating margin (i.e., margin expansion slows/reverses versus prior quarter trend)
Where: Company quarterly earnings release / 10-Q or 8-K financial statements
In context
“t to start and then I can add? John Murphy: Yeah, that'd be great. Yeah. You're right. The margins at 46% this quarter we had indicated that with the more of a reopening across different regions, we would start to see our facilities come online, or business. travel, and come back and certainly continue our hiring ramps with the Delta Variant probably slowed that down a little bit. And so that contributed to the margin expansion you saw in Q3. But the overall was an outstanding quarter for older businesses. and what it says, the long road, the path to margin expansion is really to revenue growth given the leverage in our mode and after the contributions from the revenue performance with quarter continued expense and things, I just talked about that contributed overall to the performance. But we expect those expenses to come back in a Phase reentering out maybe a little slower than we originally thought when we talked about the second half, but that being said, when I think about our original targets in December, its implied margin expansion. When we did our updated targets in Q1, it was an even larger margin expansion from what we saw. But we're executing against these huge March opportunities, and we'll continue to do that with an eye and I continued top-line growth, such as areas of [Indiscernible] you touched on, which is 3D and immersive Adobe Experience Platform, sign stock mobile, all of that. Shantanu Narayen: Well said, John, and maybe the only other thing I would add is that in I - certainly, I think when you look at some of the TENEO facilities expenses, it's a little lock efficient in terms of what's happening on expenses. But our big position is when you have a 100 and plus billion-dollar addressable market, I”
Verify independently
SEC filings for ADBE ↗ · Claim quote is verbatim from the 2021Q3 earnings call.