ADBE – Market expectations are for record Uniform ROA performance, but management has concerns about revenues and growth

• Adobe Systems Incorporated (ADBE:USA) currently trades near the higher end of historical valuations relative to UAFRS-based (Uniform) Earnings, with a 36.3x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about revenues and growth
• Specifically, management has concerns about sustaining year-over-year growth in the digital media segment, as well as growth in digital media ARR. Furthermore, they may be concerned about the sustainability of Adobe Experience Cloud revenue growth, and may be overstating their satisfaction with deferred and unbilled revenue numbers. Finally, they may be exaggerating their ability to drive growth and margin upside with further investment