Adobe Reports Record Revenue in Q1 Fiscal 2024

Adobe achieved a record revenue of $5.18 billion in Q1 FY2024, marking an 11% year-over-year growth, with significant momentum observed across Creative Cloud, Document Cloud, and Experience Cloud. This performance is attributed to strong customer adoption and generative AI innovation. Notably, Adobe announced a new $25 billion share repurchase program.

Financial Highlights:

• Non-GAAP Net Income: $2.05 billion, indicating robust profitability.
• Non-GAAP Diluted Earnings per Share: $4.48, reflecting earnings strength.
• Cash Flows from Operations: $1.17 billion, showcasing healthy operational efficiency.
• Remaining Performance Obligations (RPO): $17.58 billion, signaling strong future revenue potential.
• Shares Repurchased: Approximately 3.1 million shares, underlining shareholder value return.

Revenue by Segment:

• Digital Media: $3.82 billion in revenue (12% YoY growth), with Creative ARR at $12.78 billion and Document Cloud ARR at $2.98 billion. Document Cloud revenue notably grew by 18% YoY.
• Digital Experience: $1.29 billion in revenue (10% YoY growth), with subscription revenue growing by 12% YoY.

Financial Targets for Q2 FY2024:

• Total Revenue: Projected to be between $5.25 billion and $5.30 billion.
• Digital Media Net New ARR: Approximately $440 million.
• Digital Media Segment Revenue: Expected to be between $3.87 billion and $3.90 billion.
• Digital Experience Segment Revenue: Forecasted to be between $1.31 billion and $1.33 billion.
• GAAP and Non-GAAP Tax Rate: Both expected to be around 18.5%.
• Earnings per Share: GAAP EPS projected to be between $3.35 and $3.40; Non-GAAP EPS forecasted to be between $4.35 and $4.40