CLAIM #4036 · Adobe Systems Incorporated (ADBE) · 2022Q3 earnings call · Sep 15, 2022 · due Dec 31, 2025
“Starting in year two post close, you will see our EPS growth rate faster than our overall revenue growth, will be accretive exiting year three and we are poised to deliver a lot of value.”
Dan Durn · CFO
How to check this claim
Look at: Non-GAAP EPS growth rate vs. total revenue growth rate, and EPS accretion/dilution from the Figma acquisition, measured on a fiscal-year basis
It came true if: In fiscal year 2 post-close, YoY non-GAAP EPS growth rate > YoY total revenue growth rate; by fiscal year 3 post-close (exiting that year), the acquisition is EPS-accretive (non-GAAP EPS with deal >= non-GAAP EPS without it, per company disclosure)
Where: Company earnings releases and management commentary (10-K/10-Q non-GAAP EPS and revenue figures, plus any explicit accretion/dilution statements on earnings calls)
In context
“ories and drive growth for decades to come. And as we think about that growth trajectory, walked into -- walked through a number of those drivers. It’s about extending the performance of that platform as part of the combined company, getting it access to our customers and our go-to-market global -- go-to-market footprint. It’s about accelerating the delivery of new Adobe offerings on the web and then jointly introduce new offerings as we unlock those possibilities in collaborative creativity. This gives us an opportunity to focus and manage the R&D investments as we drive that roadmap and striking the balance between accelerating the growth and preserving that growth trajectory, but doing it in a disciplined way. We are going to deliver a tremendous amount of value over time to investors. Starting in year two post close, you will see our EPS growth rate faster than our overall revenue growth, will be accretive exiting year three and we are poised to deliver a lot of value. Kash Rangan: Wonderful. Thank you so much and best wishes. Operator: Our next question comes from Brad Zelnick of Deutsche Bank. Brad Zelnick: Thank you very much and congratulations. This is obviously a big moment for Adobe. It’s pretty clear what Figma brings to the table in terms of innovation, collaboration and communities, and I appreciate the comments about Figma helping to further webify core Adobe products. But what do you say to the perspective that this $20 billion acquisition seems more reactive versus proactive? And perhaps more importantly, how do we get comfortable that Adobe’s organic innovation engine is alive and well for capturing the trends and opportunities that lie ahead in Creative? Shantanu Narayen: Brad, it’s a good question and I understand that in these markets,”
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SEC filings for ADBE ↗ · Claim quote is verbatim from the 2022Q3 earnings call.