Adobe (ADBE) Q4 2024 earnings summary

Executive summary

• Achieved record FY2024 revenue of $21.51 billion, up 11% year-over-year, with Q4 revenue of $5.61 billion, also up 11% year-over-year, driven by strong demand for Creative Cloud, Document Cloud, and Experience Cloud.

• GAAP EPS for FY2024 was $12.36 (up 5%), and non-GAAP EPS was $18.42 (up 15%). Q4 GAAP EPS was $3.79 (up 17%), and non-GAAP EPS was $4.81 (up 13%).

• Digital Media net new ARR exceeded $2 billion for the first time, with Q4 net new ARR of $578 million.

• Digital Experience business surpassed $5 billion in annual revenue, with Q4 revenue of $1.40 billion (up 10% year-over-year).

• Major product innovation in generative AI, including Firefly models, GenStudio, and AI Assistant, drove customer adoption and engagement.

Financial highlights

• FY2024 Digital Media revenue: $15.86 billion (up 12%); Digital Experience revenue: $5.37 billion (up 10%).

• Q4 Digital Media revenue: $4.15 billion (up 12%); Q4 Digital Experience revenue: $1.40 billion (up 10%).

• Q4 Document Cloud revenue: $843 million (up 17%); net new Document Cloud ARR: $173 million; ending ARR $3.48 billion (up 23%).

• Q4 Creative Cloud revenue: $3.3 billion (up 10%); net new creative ARR: $405 million.

• FY2024 operating cash flows totaled $8.06 billion; Q4 cash flows from operations: $2.92 billion.

Outlook and guidance

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

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

• Q1 FY2025 revenue guidance: $5.63–$5.68 billion; non-GAAP EPS: $4.95–$5.00.

• Expecting non-GAAP operating margin of ~46% for FY2025.

• Foreign exchange expected to be a $200 million headwind to FY2025 revenue.