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Mar 01, 2024
Adobe Q1 2024 Earnings Report
Adobe's Q1 2024 earnings were driven by strong momentum across Creative Cloud, Document Cloud and Experience Cloud, with record RPO growth.
Key Takeaways
Adobe reported record Q1 revenue of $5.18 billion, representing 11% year-over-year growth. The company's strong performance was driven by growth in Creative Cloud, Document Cloud, and Experience Cloud. Adobe also announced a new $25 billion share repurchase program.
Adobe achieved revenue of $5.18 billion, an 11 percent year-over-year growth.
Digital Media segment revenue was $3.82 billion, a 12 percent year-over-year growth.
Net new Digital Media ARR was $432 million, exiting the quarter with Digital Media ARR of $15.76 billion.
Digital Experience segment revenue was $1.29 billion, a 10 percent year-over-year growth.
Revenue by Segment
Forward Guidance
Adobe is providing second quarter targets, which factor in current expectations for the macroeconomic and foreign exchange environments.
Positive Outlook
- Total revenue: $5.25 billion to $5.30 billion
- Digital Media net new ARR: ~$440 million
- Digital Media segment revenue: $3.87 billion to $3.90 billion
- Digital Experience segment revenue: $1.31 billion to $1.33 billion
- Digital Experience subscription revenue: $1.165 billion to $1.185 billion
Challenges Ahead
- GAAP Earnings per share: $3.35 to $3.40
- Non-GAAP Earnings per share: $4.35 to $4.40
- Targets assume diluted share count of ~453 million for second quarter fiscal year 2024.
- GAAP Tax rate: ~18.5%
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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