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Aug 30, 2024
Adobe Q3 2024 Earnings Report
Adobe's Q3 2024 performance reflected record revenue, driven by innovation and customer value delivery.
Key Takeaways
Adobe achieved record Q3 revenue of $5.41 billion, representing 11% year-over-year growth. The company's diluted earnings per share was $3.76 on a GAAP basis and $4.65 on a non-GAAP basis. Net new Digital Media ARR reached $504 million, and exiting RPO surpassed $18 billion, growing 15% year-over-year.
Adobe reported record Q3 revenue of $5.41 billion, an 11% increase year-over-year.
Net new Digital Media ARR was $504 million, with Digital Media ARR reaching $16.76 billion.
GAAP operating income was $1.99 billion, and non-GAAP operating income was $2.52 billion.
The company generated cash flows from operations of $2.02 billion.
Revenue by Segment
Forward Guidance
Adobe provided fourth quarter targets that factor in current macroeconomic conditions and year-end seasonal strength.
Positive Outlook
- Total revenue is expected to be between $5.50 billion and $5.55 billion.
- Digital Media net new ARR is projected to be approximately $550 million.
- Digital Media segment revenue is targeted to be between $4.09 billion and $4.12 billion.
- Digital Experience segment revenue is expected to be between $1.36 billion and $1.38 billion.
- Non-GAAP earnings per share are projected to be between $4.63 and $4.68.
Challenges Ahead
- Targets assume diluted share count of ~445 million for fourth quarter fiscal year 2024.
- GAAP earnings per share are expected to be between $3.58 and $3.63.
- GAAP tax rate is expected to be approximately 16.0%.
- Non-GAAP tax rate is expected to be approximately 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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