CLAIM #3985 · Adobe Systems Incorporated (ADBE) · 2022Q1 earnings call · Mar 22, 2022 · due Dec 2, 2022
“And then when I look at the share repurchase activity, clearly the company took advantage of the current environment. And that’s going to create about a $0.02 a share benefit each quarter this year versus where we were at FA Day.”
Dan Durn · CFO
How to check this claim
Look at: Non-GAAP EPS benefit attributable to share repurchase activity, per quarter, relative to FA Day guidance baseline
It came true if: Quarterly non-GAAP EPS benefit from buybacks approximately $0.02 (within $0.005) versus FA Day baseline, for each of Q2-Q4 FY2022
Where: Company quarterly earnings call management commentary and non-GAAP reconciliation (10-Q/earnings press release)
In context
“s. The other piece are the transient effects. And I would point to two of them. So, for the war in Ukraine, we de-risked the profile around the situation. And that’s the prudent thing to do, to be conservative in situations like this. So, that’s what you see in the $87 million reduction in ARR as well as the $75 million reduction from a revenue standpoint, Q2 through Q4. So, if I take that revenue and I flow it through the P&L, that’s going to be about a $0.04 a share headwind per quarter for the balance of the year, Q2 through Q4. From a tax standpoint, we talked about an 18.5% non-GAAP tax rate. That’s a 1.5 point change versus where we were at FA Day. If I were to roll that through the P&L, that’s about $0.06 a share per quarter throughout the year. We were able to overcome that in Q1. And then when I look at the share repurchase activity, clearly the company took advantage of the current environment. And that’s going to create about a $0.02 a share benefit each quarter this year versus where we were at FA Day. And so when I net all of that out on a go-forward basis, you have got about an $0.08 per share headwind in each quarter. And again, like we said in Q1, we were able to overcome that headwind in Q1 and deliver above the expectations that we had set, and we are going to continue to orient towards growth. We are going to invest to lead, but if there is opportunities to do it in a disciplined way and overcome it on a go-forward basis, we will take it a quarter at a time and let you know what we see. Kash Rangan: Thank you, Dan. And Shantanu, just one final follow-up, the clear – I know that you want to talk about the Document Cloud and the Experience Cloud, but I remember fall of 2011, you have made a very bold transition to Creative Cloud subscription. You, in fact, outlined that you have a”
Verify independently
SEC filings for ADBE ↗ · Claim quote is verbatim from the 2022Q1 earnings call.