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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.
Adobe
Adobe
Adobe Revenue by Segment
Revenue by Segment
Digital Media Revenue
CapyFin.comDigital Experience Revenue
CapyFin.com 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%.
- Current macroeconomic conditions are factored into the targets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income