Sep 01, 2023

Adobe Q3 2023 Earnings Report

Adobe's Q3 fiscal year 2023 results were released, demonstrating record revenue and EPS growth.

Key Takeaways

Adobe achieved record revenue of $4.89 billion in Q3 fiscal year 2023, representing 10% year-over-year growth. The company's EPS grew by over 20% year-over-year, with GAAP EPS at $3.05 and non-GAAP EPS at $4.09.

Adobe achieved record Q3 net new Digital Media ARR of $464 million.

The company delivered EPS growth exceeding 20 percent year over year.

Total revenue reached $4.89 billion, a 10% year-over-year increase.

GAAP operating income was $1.70 billion, and GAAP net income was $1.40 billion.

Total Revenue
$4.89B
Previous year: $4.43B
+10.3%
EPS
$4.09
Previous year: $3.4
+20.3%
Digital Media ARR
$14.6B
Previous year: $13.4B
+9.0%
Remaining Performance Obligations
$15.7B
Previous year: $14.1B
+11.4%
Gross Profit
$4.31B
Previous year: $3.89B
+10.9%
Cash and Equivalents
$6.6B
Previous year: $3.87B
+70.6%
Free Cash Flow
$1.78B
Previous year: $1.58B
+12.9%
Total Assets
$29.1B
Previous year: $26.7B
+8.8%

Adobe

Adobe

Adobe Revenue by Segment

Forward Guidance

Adobe provided fourth quarter targets that factor in current macroeconomic conditions and typical year-end seasonal strength.

Positive Outlook

  • Total revenue is expected to be between $4.975 billion and $5.025 billion.
  • Digital Media net new ARR is expected to be approximately $520 million.
  • Digital Media segment revenue is projected to be between $3.67 billion and $3.70 billion.
  • Digital Experience segment revenue is anticipated to be between $1.25 billion and $1.27 billion.
  • Non-GAAP EPS is expected to be between $4.10 and $4.15.

Revenue & Expenses

Visualization of income flow from segment revenue to net income