Nov 29, 2024

Adobe Q4 2024 Earnings Report

Adobe reported record Q4 and Fiscal 2024 revenue driven by strong demand for Creative Cloud, Document Cloud, and Experience Cloud.

Key Takeaways

Adobe achieved record Q4 revenue of $5.61 billion, representing 11 percent year-over-year growth. Diluted earnings per share was $3.79 on a GAAP basis and $4.81 on a non-GAAP basis. Record cash flows from operations were $2.92 billion.

FY2024 Net New Digital Media ARR exceeds $2.0 billion

FY2024 Digital Experience revenue exceeds $5.3 billion

Record Q4 operating cash flows of $2.92 billion

Record RPO of $19.96 billion, 16 percent year-over-year growth

Total Revenue
$5.61B
Previous year: $5.05B
+11.1%
EPS
$4.81
Previous year: $4.27
+12.6%
Digital Media ARR
$17.3B
Previous year: $15.2B
+14.2%
Remaining Performance Obligations
$20B
Previous year: $17.2B
+15.9%
Gross Profit
$4.99B
Previous year: $4.41B
+13.0%
Cash and Equivalents
$7.61B
Previous year: $7.14B
+6.6%
Free Cash Flow
$2.92B
Previous year: $1.55B
+88.5%
Total Assets
$30.2B
Previous year: $29.8B
+1.5%

Adobe

Adobe

Adobe Revenue by Segment

Forward Guidance

Adobe provided financial targets for fiscal year 2025 and the first quarter of fiscal year 2025.

Positive Outlook

  • Total revenue for FY2025 is expected to be $23.30 billion to $23.55 billion
  • Digital Media segment revenue for FY2025 is expected to be $17.25 billion to $17.40 billion
  • Digital Experience segment revenue for FY2025 is expected to be $5.80 billion to $5.90 billion
  • Total revenue for Q1 2025 is expected to be $5.63 billion to $5.68 billion
  • Digital Media segment revenue for Q1 2025 is expected to be $4.17 billion to $4.20 billion

Challenges Ahead

  • Digital Media ending ARR growth 11.0% year over year
  • Digital Experience subscription revenue $5.375 billion to $5.425 billion
  • GAAP diluted net income per share $15.80 to $16.10
  • Digital Experience segment revenue for Q1 2025 is expected to be $1.38 billion to $1.40 billion
  • GAAP diluted net income per share $3.85 to $3.90

Revenue & Expenses

Visualization of income flow from segment revenue to net income