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Dec 01, 2023
Adobe Q4 2023 Earnings Report
Adobe's Q4 2023 financial results were reported, revealing record revenue and strong growth across key segments.
Key Takeaways
Adobe reported record Q4 revenue of $5.05 billion, representing a 12% year-over-year growth. The company's diluted earnings per share was $3.23 on a GAAP basis and $4.27 on a non-GAAP basis. Strong performance was driven by growth in Digital Media and Digital Experience segments.
Adobe achieved revenue of $5.05 billion in Q4 2023, a 12% year-over-year increase.
GAAP diluted earnings per share was $3.23, and non-GAAP diluted earnings per share was $4.27.
Digital Media segment revenue reached $3.72 billion, with a 13% year-over-year growth.
Remaining Performance Obligations (RPO) exiting the quarter were $17.22 billion.
Adobe
Adobe
Adobe Revenue by Segment
Revenue by Segment
Digital Media Revenue
CapyFin.comDigital Experience Revenue
CapyFin.com Forward Guidance
Adobe provided fiscal year 2024 and first quarter targets, factoring in macroeconomic and foreign exchange environments. These targets do not reflect the planned acquisition of Figma.
Positive Outlook
- Total revenue is projected to be between $21.30 billion and $21.50 billion for fiscal year 2024.
- Digital Media net new ARR is expected to be approximately $1.90 billion for fiscal year 2024.
- Digital Media segment revenue is targeted between $15.75 billion and $15.85 billion for fiscal year 2024.
- GAAP earnings per share is forecasted between $13.45 and $13.85 for fiscal year 2024.
- Non-GAAP earnings per share is projected between $17.60 and $18.00 for fiscal year 2024.
Challenges Ahead
- Targets do not reflect the planned acquisition of Figma.
- Changes to foreign exchange rates resulted in a $160 million upward revaluation to Adobe’s total Digital Media ARR balance entering fiscal 2024.
- First quarter fiscal year 2024 total revenue is projected between $5.10 billion and $5.15 billion.
- First quarter fiscal year 2024 Digital Media net new ARR is expected to be approximately $410 million.
- First quarter fiscal year 2024 GAAP earnings per share is forecasted between $3.35 and $3.40.
Revenue & Expenses
Visualization of income flow from segment revenue to net income