Adobe (ADBE) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 FY24 revenue of $5.41 billion, up 11% year-over-year, driven by strong performance and innovation in AI across Creative Cloud, Document Cloud, and Experience Cloud.

• GAAP EPS was $3.76 (up 23% YoY), non-GAAP EPS was $4.65 (up 14% YoY); net income was $1.68 billion, up 20% YoY.

• Creative Cloud and Document Cloud ARR reached $13.45B and $3.31B, with total Digital Media ARR at $16.76B, up 9% from prior year-end.

• Over 12 billion Firefly-powered generations and rapid AI feature adoption across product lines.

• Delivered over $2 billion in operating cash flow and repurchased 5.2 million shares during the quarter.

Financial highlights

• Digital Media revenue reached $4.00 billion, up 11% YoY; net new Digital Media ARR was $504 million.

• Document Cloud revenue was $807 million, up 18% YoY; net new Document Cloud ARR was $163 million, a Q3 record.

• Creative revenue was $3.19 billion, up 10% YoY; net new Creative Cloud ARR was $341 million.

• Digital Experience revenue was $1.35 billion, up 10% YoY; subscription revenue within this segment was $1.23 billion, up 12% YoY.

• Cash flows from operations were $2.02 billion; RPO at quarter end was $18.14 billion, up 15% YoY.

Outlook and guidance

• Q4 revenue guidance: $5.50–$5.55 billion.

• Digital Media net new ARR target: ~$550 million.

• Digital Media revenue: $4.09–$4.12 billion; Digital Experience revenue: $1.36–$1.38 billion.

• GAAP EPS guidance: $3.58–$3.63; non-GAAP EPS: $4.63–$4.68.

• Tax rate guidance: ~16% GAAP, 18.5% non-GAAP.