Adobe (ADBE) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 FY24 revenue of $5.31 billion, up 10–11% year-over-year, driven by growth in Creative Cloud, Document Cloud, and Experience Cloud, with strong demand and AI-powered product innovation.

• GAAP EPS was $3.49 (up 24% year-over-year); non-GAAP EPS was $4.48 (up 15% year-over-year).

• Net income rose 21% to $1.57 billion; Digital Media ARR reached $16.25 billion, up 6% from December 2023.

• Raised annual targets for Digital Media net new ARR, Digital Experience subscription revenue, and EPS due to strong performance and robust customer demand.

• Continued innovation and integration of generative AI across product lines, driving user adoption and monetization.

Financial highlights

• Digital Media revenue reached $3.91 billion, up 11–12% year-over-year; net new Digital Media ARR was $487 million.

• Document Cloud revenue was $782 million, up 19% year-over-year; net new Document Cloud ARR was $165 million.

• Creative Cloud revenue was $3.13 billion, up 10–11% year-over-year; net new Creative Cloud ARR was $322 million.

• Digital Experience revenue was $1.33 billion, up 9% year-over-year; subscription revenue grew 13% year-over-year to $1.20 billion.

• Cash flows from operations were $1.94 billion for Q2; cash and cash equivalents at quarter end were $7.66–$8.07 billion.

Outlook and guidance

• Q3 revenue guidance: $5.33–$5.38 billion; Digital Media net new ARR of ~$460 million.

• FY24 revenue guidance: $21.40–$21.50 billion; Digital Media net new ARR of ~$1.95 billion.

• FY24 GAAP EPS guidance: $11.80–$12.00; non-GAAP EPS: $18.00–$18.20.

• Digital Experience subscription revenue target for FY24: $4.775–$4.825 billion.

• Management remains focused on long-term growth through AI innovation and expanding subscription offerings.