Adobe (ADBE) Q4 2024 earnings summary

Executive summary

• Achieved record FY2024 revenue of $21.51B (up 11% YoY) and Q4 revenue of $5.61B (up 11% YoY), driven by strong demand for Creative Cloud, Document Cloud, and Experience Cloud.

• Digital Media net new ARR reached $578M in Q4 and exceeded $2B for FY24, both records.

• Digital Experience business surpassed $5B in annual revenue, with Q4 revenue of $1.40B (up 10% YoY).

• Major product innovation with generative AI models (Firefly family), AI Assistant in Acrobat, and launch of Gen Studio for content supply chain drove customer adoption.

• Strong enterprise adoption and customer wins across both Digital Media and Digital Experience segments.

Financial highlights

• Q4 GAAP EPS: $3.79 (up 17% YoY); non-GAAP EPS: $4.81 (up 13% YoY).

• FY2024 GAAP EPS: $12.36 (up 5% YoY); non-GAAP EPS: $18.42 (up 15% YoY).

• FY2024 operating cash flow: $8.06B; Q4 operating cash flow: $2.92B.

• Repurchased 17.5M shares in FY24; 4.6M shares in Q4.

• Exited FY24 with $19.96B in RPO and $7.89B in cash and short-term investments.

Outlook and guidance

• FY2025 revenue guidance: $23.30–$23.55B; Digital Media revenue: $17.25–$17.40B; Digital Experience revenue: $5.80–$5.90B.

• FY2025 GAAP EPS: $15.80–$16.10; non-GAAP EPS: $20.20–$20.50.

• Q1 FY2025 revenue: $5.63–$5.68B; non-GAAP operating margin ~47%.

• Non-GAAP operating margin guidance for FY2025: ~46%.

• Expect $200M FX headwind to FY2025 revenue.