December 14, 2020 Adobe BUY Company Update : Design Software The art and science of being Adobe Adobe’s 2020 analyst meeting, concurrent with 4Q20 results and FY21 guidance (reviewed separately in our Decemebr 11th, 2020 report), reaffirmed for us three longtime pillars of the Jay Vleeschhouwer Adobe franchises and our investment thesis. These are, first, the
[email protected] distinctive product portfolio and depth of technology (i.e., Adobe 646-442-4251 has, for the decades we have been following this company, been clearly and consistently committed to deep development), second, Stock Symbol NASDAQ: ADBE the business model, which has been particularly enhanced by the implementation of the subscriptions model; and third, large Current Price $486.42 addressable markets (Adobe’s creative/design and Acrobat bases 12 mos. Target Price $597.00 were already large even before Creative Cloud and Document Investment Opinion Buy Cloud but each has been undergoing years of magnification). Market Cap $2,356,215.8 mln The output of this technology-business combination can be seen Shares O/S 484.4 mln in the growth of both deferred revenues (a 20% CAGR over the Avg Daily Vol. (3 mos.) 2,548,399 shs. past half-decade) and operating cash flow (a 31% CAGR over the 52-Week Price Low/High $255.13 - $536.88 past half-decade). EPS The CEO’s and CTO’s presentations in particular on the Adobe FY 21E FY 22E FY 23E portfolio, technology vision and roadmap were again especially important as substantiating the view of where Adobe will be Q1 (Feb) $2.80E $2.98E $3.39E heading over the next half-decade and more.