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Adobe Reports Record Revenue in Q3 Fiscal 2024

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Adobe (ADBE) reported record Q3 fiscal 2024 results, with revenue reaching $5.41 billion, an 11% year-over-year growth. Key highlights include:

- Digital Media ARR of $504 million
- Remaining Performance Obligations (RPO) surpassing $18 billion, up 15% YoY
- GAAP diluted EPS of $3.76 and non-GAAP EPS of $4.65
- Cash flows from operations at $2.02 billion

The company's Digital Media segment revenue grew 11% to $4.00 billion, while Digital Experience segment revenue increased 10% to $1.35 billion. Adobe repurchased approximately 5.2 million shares during the quarter and provided optimistic Q4 targets, projecting total revenue between $5.50 billion to $5.55 billion.

Adobe (ADBE) ha riportato risultati record per il terzo trimestre fiscale 2024, con ricavi che hanno raggiunto 5,41 miliardi di dollari, registrando una crescita dell'11% rispetto all'anno precedente. I punti salienti includono:

- ARR di Digital Media pari a 504 milioni di dollari
- Obbligazioni di performance residue (RPO) superiori a 18 miliardi di dollari, in aumento del 15% su base annua
- EPS GAAP diluito di 3,76 dollari e EPS non GAAP di 4,65 dollari
- Flussi di cassa dalle operazioni pari a 2,02 miliardi di dollari

Il fatturato del segmento Digital Media è cresciuto dell'11% a 4,00 miliardi di dollari, mentre il fatturato del segmento Digital Experience è aumentato del 10% a 1,35 miliardi di dollari. Adobe ha riacquistato circa 5,2 milioni di azioni durante il trimestre e ha fornito previsioni ottimistiche per il quarto trimestre, prevedendo ricavi totali compresi tra 5,50 miliardi e 5,55 miliardi di dollari.

Adobe (ADBE) reportó resultados récord en el tercer trimestre fiscal 2024, con ingresos que alcanzaron 5.41 mil millones de dólares, un crecimiento del 11% interanual. Los aspectos destacados incluyen:

- ARR de Digital Media de 504 millones de dólares
- Obligaciones de rendimiento restantes (RPO) que superan 18 mil millones de dólares, un aumento del 15% interanual
- EPS diluido GAAP de 3.76 dólares y EPS no GAAP de 4.65 dólares
- Flujos de efectivo de las operaciones de 2.02 mil millones de dólares

Los ingresos del segmento Digital Media crecieron un 11% a 4.00 mil millones de dólares, mientras que los ingresos del segmento Digital Experience aumentaron un 10% a 1.35 mil millones de dólares. Adobe recompró aproximadamente 5.2 millones de acciones durante el trimestre y proporcionó proyecciones optimistas para el cuarto trimestre, proyectando ingresos totales entre 5.50 mil millones y 5.55 mil millones de dólares.

어도비(ADBE)는 2024 회계연도 3분기 실적이 기록적이라고 보고하며, 수익은 54억 1000만 달러에 달하고, 전년 대비 11% 성장했습니다. 주요 하이라이트는 다음과 같습니다:

- 디지털 미디어의 ARR은 5억 4000만 달러
- 남은 성과 의무(RPO)는 180억 달러를 초과하며, 전년 대비 15% 상승
- GAAP 희석 EPS는 3.76달러, 비 GAAP EPS는 4.65달러
- 운영에서의 현금 흐름은 20억 2000만 달러

회사의 디지털 미디어 부문 수익은 40억 달러로 11% 성장했으며, 디지털 경험 부문 수익은 13억 5000만 달러로 10% 증가했습니다. 어도비는 분기 동안 약 520만 주의 자사주를 매입했으며, 4분기에 대한 낙관적인 목표를 제시하며 총 수익을 55억 달러에서 55억 5000만 달러 사이로 예상했습니다.

Adobe (ADBE) a annoncé des résultats record pour le troisième trimestre de l'exercice 2024, avec un chiffre d'affaires atteignant 5,41 milliards de dollars, soit une croissance de 11 % par rapport à l'année précédente. Les principaux points forts incluent :

- ARR pour les Médias Numériques de 504 millions de dollars
- Obligations de performance restantes (RPO) dépassant 18 milliards de dollars, en hausse de 15 % d'une année sur l'autre
- BPA dilué GAAP de 3,76 dollars et BPA non GAAP de 4,65 dollars
- Flux de trésorerie d'exploitation de 2,02 milliards de dollars

Les revenus du segment Médias Numériques ont augmenté de 11 % pour atteindre 4,00 milliards de dollars, tandis que les revenus du segment Expérience Numérique ont augmenté de 10 % pour s'établir à 1,35 milliard de dollars. Adobe a racheté environ 5,2 millions d'actions au cours du trimestre et a fourni des prévisions optimistes pour le quatrième trimestre, prévoyant un chiffre d'affaires total compris entre 5,50 milliards et 5,55 milliards de dollars.

Adobe (ADBE) hat Rekordzahlen für das dritte Quartal des fiskalischen Jahres 2024 bekanntgegeben, mit einem Umsatz von 5,41 Milliarden Dollar, was einem Wachstum von 11 % im Vergleich zum Vorjahr entspricht. Zu den wichtigsten Punkten gehören:

- ARR aus Digital Media von 504 Millionen Dollar
- Die verbleibenden Leistungsverpflichtungen (RPO) übersteigen 18 Milliarden Dollar, ein Anstieg von 15 % im Jahresvergleich
- GAAP-diluted EPS von 3,76 Dollar und non-GAAP EPS von 4,65 Dollar
- Cashflow aus operativen Tätigkeiten von 2,02 Milliarden Dollar

Der Umsatz im Segment Digital Media wuchs um 11 % auf 4,00 Milliarden Dollar, während der Umsatz im Segment Digital Experience um 10 % auf 1,35 Milliarden Dollar anstieg. Adobe hat im Quartal rund 5,2 Millionen Aktien zurückgekauft und optimistische Ziele für das vierte Quartal bekanntgegeben, mit einer Umsatzprognose von 5,50 Milliarden bis 5,55 Milliarden Dollar.

Positive
  • Record Q3 revenue of $5.41 billion, representing 11% year-over-year growth
  • Digital Media net new ARR of $504 million
  • Remaining Performance Obligations (RPO) grew 15% year-over-year to $18.14 billion
  • Document Cloud revenue increased 18% year-over-year to $807 million
  • Cash flows from operations were $2.02 billion
  • Company repurchased approximately 5.2 million shares during the quarter
Negative
  • None.

Insights

Adobe's Q3 FY2024 results showcase strong performance with revenue reaching $5.41 billion, an 11% YoY growth. The company's Digital Media segment, including Creative Cloud and Document Cloud, continues to be the primary growth driver. Net new Digital Media ARR of $504 million indicates robust customer adoption and retention. The exiting RPO of $18.14 billion, growing 15% YoY, suggests a healthy pipeline for future revenue. Adobe's focus on AI integration across its product suite could be a key differentiator in maintaining market leadership. However, investors should monitor the pace of revenue growth, which has slightly decelerated compared to previous quarters. Overall, Adobe's financial health remains strong, with impressive cash flows and consistent share repurchases.

Adobe's strategic focus on AI integration across its Creative Cloud, Document Cloud and Experience Cloud platforms is a game-changer. This approach not only enhances user experience but also creates significant barriers to entry for competitors. The 18% YoY growth in Document Cloud revenue highlights the increasing demand for digital document solutions in a hybrid work environment. Adobe's ability to maintain double-digit growth in its mature Creative segment (10% YoY) is impressive, suggesting continued innovation and market expansion. The company's investment in AI could lead to new revenue streams and increased customer lock-in. However, Adobe must stay vigilant against emerging AI-powered creative tools that could potentially disrupt its market position.

Adobe's Q3 results reflect its strong position in the digital transformation market. The company's ability to grow both its Digital Media and Digital Experience segments by 10% or more YoY demonstrates the broad demand for its solutions across various industries. The Document Cloud's 18% YoY growth is particularly noteworthy, indicating accelerated digital document adoption post-pandemic. Adobe's focus on AI integration aligns with market trends and customer expectations. However, the company faces increasing competition in the creative software space, particularly from AI-powered tools. Adobe's success will depend on its ability to innovate rapidly and maintain its ecosystem's stickiness. The upcoming Q4 targets suggest confidence in continued growth, but investors should watch for any signs of macroeconomic headwinds affecting enterprise spending.

Record Q3 net new Digital Media ARR of $504 million, with exiting RPO surpassing $18 billion and growing 15 percent year over year

SAN JOSE, Calif.--(BUSINESS WIRE)-- Adobe (Nasdaq:ADBE) today reported financial results for its third quarter fiscal year 2024 ended Aug. 30, 2024.

"Adobe's record Q3 performance is a testament to our relentless innovation and commitment to delivering value to our customers,” said Shantanu Narayen, chair and CEO, Adobe. “With groundbreaking advancements in AI across Creative Cloud, Document Cloud and Experience Cloud, we are empowering millions of users worldwide.”

“In Q3, Adobe delivered cash flows of over $2 billion and exited the quarter with record RPO, demonstrating the power of combining growth with world-class profitability,” said Dan Durn, executive vice president and CFO, Adobe. “Given the massive markets we are catalyzing, I’m confident in our ability to drive growth and industry leadership.”

Third Quarter Fiscal Year 2024 Financial Highlights

  • Adobe achieved revenue of $5.41 billion in its third quarter of fiscal year 2024, which represents 11 percent year-over-year growth as reported and in constant currency. Diluted earnings per share was $3.76 on a GAAP basis and $4.65 on a non-GAAP basis.
  • GAAP operating income in the third quarter was $1.99 billion and non-GAAP operating income was $2.52 billion. GAAP net income was $1.68 billion and non-GAAP net income was $2.08 billion.
  • Cash flows from operations were $2.02 billion.
  • Remaining Performance Obligations (“RPO”) exiting the quarter were $18.14 billion.
  • Adobe repurchased approximately 5.2 million shares during the quarter.

Third Quarter Fiscal Year 2024 Business Segment Highlights

  • Digital Media segment revenue was $4.00 billion, which represents 11 percent year-over-year growth or 12 percent in constant currency. Document Cloud revenue was $807 million, representing 18 percent year-over-year growth as reported and in constant currency. Creative revenue grew to $3.19 billion, representing 10 percent year-over-year growth or 11 percent in constant currency.
  • Net new Digital Media Annualized Recurring Revenue (“ARR”) was $504 million, exiting the quarter with Digital Media ARR of $16.76 billion. Document Cloud ARR grew to $3.31 billion and Creative ARR grew to $13.45 billion.
  • Digital Experience segment revenue was $1.35 billion, representing 10 percent year-over-year growth as reported and in constant currency. Digital Experience subscription revenue was $1.23 billion, representing 12 percent year-over-year growth as reported and in constant currency.

Financial Targets

Adobe is providing fourth quarter targets that factor in current macroeconomic conditions and year-end seasonal strength.

The following table summarizes Adobe’s fourth quarter fiscal year 2024 targets:

Total revenue

$5.50 billion to $5.55 billion

Digital Media net new ARR

~$550 million

Digital Media segment revenue

$4.09 billion to $4.12 billion

Digital Experience segment revenue

$1.36 billion to $1.38 billion

Digital Experience subscription revenue

$1.23 billion to $1.25 billion

Tax rate

GAAP: ~16.0%

Non-GAAP: ~18.5%

Earnings per share1

GAAP: $3.58 to $3.63

Non-GAAP: $4.63 to $4.68

1 Targets assume diluted share count of ~445 million for fourth quarter fiscal year 2024.

Adobe to Host Conference Call

Adobe will webcast its third quarter fiscal year 2024 earnings conference call today at 2:00 p.m. Pacific Time from its investor relations website: http://www.adobe.com/ADBE. Earnings documents, including Adobe management’s prepared conference call remarks with slides and an investor datasheet are posted to Adobe’s Investor Relations Website in advance of the conference call for reference.

Forward-Looking Statements, Non-GAAP and Other Disclosures

In addition to historical information, this press release contains “forward-looking statements” within the meaning of applicable securities laws, including statements related to our business, strategy, artificial intelligence and innovation momentum; our market opportunity and future growth; market trends; current macroeconomic conditions; seasonality; fluctuations in foreign currency exchange rates; strategic investments; customer success; revenue; operating margin; and annualized recurring revenue; tax rate on a GAAP and non-GAAP basis; earnings per share on a GAAP and non-GAAP basis; and share count. Each of the forward-looking statements we make in this press release involves risks, uncertainties and assumptions based on information available to us as of the date of this press release. Such risks and uncertainties, many of which relate to matters beyond our control, could cause actual results to differ materially from these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to: failure to innovate effectively and meet customer needs; issues relating to development and use of AI; failure to realize the anticipated benefits of investments or acquisitions; failure to compete effectively; damage to our reputation or brands; service interruptions or failures in information technology systems by us or third parties; security incidents; failure to effectively develop, manage and maintain critical third-party business relationships; risks associated with being a multinational corporation and adverse macroeconomic conditions; failure to recruit and retain key personnel; complex sales cycles; changes in, and compliance with, global laws and regulations, including those related to information security and privacy; failure to protect our intellectual property; litigation, regulatory inquiries and intellectual property infringement claims; changes in tax regulations; complex government procurement processes; risks related to fluctuations in or the timing of revenue recognition from our subscription offerings; fluctuations in foreign currency exchange rates; impairment charges; our existing and future debt obligations; catastrophic events; and fluctuations in our stock price. Further information on these and other factors are discussed in the section titled “Risk Factors” in Adobe’s most recently filed Annual Report on Form 10-K and Adobe's most recently filed Quarterly Reports on Form 10-Q. The risks described in this press release and in Adobe’s filings with the U.S. Securities and Exchange Commission should be carefully reviewed.

Undue reliance should not be placed on the financial information set forth in this press release, which reflects estimates based on information available at this time. These amounts could differ from actual reported amounts stated in Adobe’s Quarterly Report on Form 10-Q for our fiscal quarter ended Aug. 30, 2024, which Adobe expects to file in Sept. 2024. Adobe assumes no obligation to, and does not currently intend to, update these forward-looking statements.

A reconciliation between GAAP and non-GAAP earnings results and financial targets and a statement regarding use of non-GAAP financial information are provided at the end of this press release and on Adobe’s investor relations website.

About Adobe

Adobe is changing the world through personalized digital experiences. For more information, visit www.adobe.com.

©2024 Adobe. All rights reserved. Adobe, Creative Cloud, Document Cloud and the Adobe logo are either registered trademarks or trademarks of Adobe (or one of its subsidiaries) in the United States and/or other countries. All other trademarks are the property of their respective owners.

Condensed Consolidated Statements of Income

(In millions, except per share data; unaudited)

 

 

Three Months Ended

 

Nine Months Ended

 

August 30, 2024

 

September 1, 2023

 

August 30, 2024

 

September 1, 2023

Revenue:

 

 

 

 

 

 

 

Subscription

$

5,180

 

 

$

4,631

 

 

$

15,156

 

 

$

13,521

 

Product

 

82

 

 

 

96

 

 

 

305

 

 

 

346

 

Services and other

 

146

 

 

 

163

 

 

 

438

 

 

 

494

 

Total revenue

 

5,408

 

 

 

4,890

 

 

 

15,899

 

 

 

14,361

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

Subscription

 

413

 

 

 

447

 

 

 

1,324

 

 

 

1,317

 

Product

 

6

 

 

 

7

 

 

 

19

 

 

 

23

 

Services and other

 

135

 

 

 

126

 

 

 

399

 

 

 

380

 

Total cost of revenue

 

554

 

 

 

580

 

 

 

1,742

 

 

 

1,720

 

 

 

 

 

 

 

 

 

Gross profit

 

4,854

 

 

 

4,310

 

 

 

14,157

 

 

 

12,641

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

1,022

 

 

 

881

 

 

 

2,945

 

 

 

2,584

 

Sales and marketing

 

1,431

 

 

 

1,337

 

 

 

4,228

 

 

 

3,983

 

General and administrative

 

366

 

 

 

353

 

 

 

1,073

 

 

 

1,041

 

Acquisition termination fee

 

 

 

 

 

 

 

1,000

 

 

 

 

Amortization of intangibles

 

43

 

 

 

42

 

 

 

127

 

 

 

126

 

Total operating expenses

 

2,862

 

 

 

2,613

 

 

 

9,373

 

 

 

7,734

 

 

 

 

 

 

 

 

 

Operating income

 

1,992

 

 

 

1,697

 

 

 

4,784

 

 

 

4,907

 

 

 

 

 

 

 

 

 

Non-operating income (expense):

 

 

 

 

 

 

 

Interest expense

 

(51

)

 

 

(27

)

 

 

(119

)

 

 

(85

)

Investment gains (losses), net

 

12

 

 

 

6

 

 

 

34

 

 

 

12

 

Other income (expense), net

 

89

 

 

 

67

 

 

 

241

 

 

 

157

 

Total non-operating income (expense), net

 

50

 

 

 

46

 

 

 

156

 

 

 

84

 

Income before income taxes

 

2,042

 

 

 

1,743

 

 

 

4,940

 

 

 

4,991

 

Provision for income taxes

 

358

 

 

 

340

 

 

 

1,063

 

 

 

1,046

 

Net income

$

1,684

 

 

$

1,403

 

 

$

3,877

 

 

$

3,945

 

Basic net income per share

$

3.78

 

 

$

3.07

 

 

$

8.63

 

 

$

8.62

 

Shares used to compute basic net income per share

 

445

 

 

 

456

 

 

 

449

 

 

 

458

 

Diluted net income per share

$

3.76

 

 

$

3.05

 

 

$

8.58

 

 

$

8.59

 

Shares used to compute diluted net income per share

 

448

 

 

 

459

 

 

 

452

 

 

 

459

 

 

Condensed Consolidated Balance Sheets

(In millions; unaudited)

 

 

August 30, 2024

 

December 1, 2023

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

7,193

 

 

$

7,141

 

Short-term investments

 

322

 

 

 

701

 

Trade receivables, net of allowances for doubtful accounts of $17 and $16, respectively

 

1,802

 

 

 

2,224

 

Prepaid expenses and other current assets

 

1,399

 

 

 

1,018

 

Total current assets

 

10,716

 

 

 

11,084

 

 

 

 

 

Property and equipment, net

 

1,969

 

 

 

2,030

 

Operating lease right-of-use assets, net

 

368

 

 

 

358

 

Goodwill

 

12,814

 

 

 

12,805

 

Other intangibles, net

 

858

 

 

 

1,088

 

Deferred income taxes

 

1,548

 

 

 

1,191

 

Other assets

 

1,557

 

 

 

1,223

 

Total assets

$

29,830

 

 

$

29,779

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

Trade payables

$

318

 

 

$

314

 

Accrued expenses

 

1,848

 

 

 

1,942

 

Debt

 

1,499

 

 

 

 

Deferred revenue

 

5,779

 

 

 

5,837

 

Income taxes payable

 

130

 

 

 

85

 

Operating lease liabilities

 

70

 

 

 

73

 

Total current liabilities

 

9,644

 

 

 

8,251

 

 

 

 

 

Long-term liabilities:

 

 

 

Debt

 

4,128

 

 

 

3,634

 

Deferred revenue

 

127

 

 

 

113

 

Income taxes payable

 

585

 

 

 

514

 

Operating lease liabilities

 

381

 

 

 

373

 

Other liabilities

 

420

 

 

 

376

 

Total liabilities

 

15,285

 

 

 

13,261

 

 

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

 

 

 

 

Additional paid-in capital

 

13,026

 

 

 

11,586

 

Retained earnings

 

36,911

 

 

 

33,346

 

Accumulated other comprehensive income (loss)

 

(309

)

 

 

(285

)

Treasury stock, at cost

 

(35,083

)

 

 

(28,129

)

Total stockholders’ equity

 

14,545

 

 

 

16,518

 

Total liabilities and stockholders’ equity

$

29,830

 

 

$

29,779

 

 

Condensed Consolidated Statements of Cash Flows

(In millions; unaudited)

 

 

Three Months Ended

 

August 30, 2024

 

September 1, 2023

Cash flows from operating activities:

 

 

 

Net income

$

1,684

 

 

$

1,403

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation, amortization and accretion

 

213

 

 

 

218

 

Stock-based compensation

 

474

 

 

 

442

 

Unrealized investment (gains) losses, net

 

(10

)

 

 

(5

)

Other non-cash adjustments

 

(81

)

 

 

(87

)

Changes in deferred revenue

 

220

 

 

 

102

 

Changes in other operating assets and liabilities

 

(479

)

 

 

(200

)

Net cash provided by operating activities

 

2,021

 

 

 

1,873

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Purchases, sales and maturities of short-term investments, net

 

86

 

 

 

236

 

Purchases of property and equipment

 

(57

)

 

 

(91

)

Purchases and sales of long-term investments, intangibles and other assets, net

 

(76

)

 

 

 

Net cash provided by (used for) investing activities

 

(47

)

 

 

145

 

 

 

 

 

Cash flows from financing activities:

 

 

 

Repurchases of common stock

 

(2,500

)

 

 

(1,000

)

Proceeds from treasury stock re-issuances, net of taxes paid related to net share settlement of equity awards

 

96

 

 

 

124

 

Other financing activities, net

 

(49

)

 

 

5

 

Net cash used for financing activities

 

(2,453

)

 

 

(871

)

Effect of exchange rate changes on cash and cash equivalents

 

12

 

 

 

(2

)

Net change in cash and cash equivalents

 

(467

)

 

 

1,145

 

Cash and cash equivalents at beginning of period

 

7,660

 

 

 

5,456

 

Cash and cash equivalents at end of period

$

7,193

 

 

$

6,601

 

 

Non-GAAP Results

 

The following table shows Adobe’s GAAP results reconciled to non-GAAP results included in this release.

 

(In millions, except per share data)

Three Months Ended

 

August 30,
2024

 

September 1,
2023

 

May 31,
2024

Operating income:

 

 

 

 

 

 

 

 

 

 

 

GAAP operating income

$

1,992

 

 

$

1,697

 

 

$

1,885

 

Stock-based and deferred compensation expense

 

485

 

 

 

448

 

 

 

472

 

Amortization of intangibles

 

83

 

 

 

92

 

 

 

84

 

Acquisition-related expenses (1)

 

 

 

 

27

 

 

 

 

Loss contingency (reversal) (2)

 

(45

)

 

 

 

 

 

 

Non-GAAP operating income

$

2,515

 

 

$

2,264

 

 

$

2,441

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

$

1,684

 

 

$

1,403

 

 

$

1,573

 

Stock-based and deferred compensation expense

 

485

 

 

 

448

 

 

 

472

 

Amortization of intangibles

 

83

 

 

 

92

 

 

 

84

 

Acquisition-related expenses (1)

 

 

 

 

27

 

 

 

 

Loss contingency (reversal) (2)

 

(45

)

 

 

 

 

 

 

Investment (gains) losses, net

 

(12

)

 

 

(6

)

 

 

(4

)

Income tax adjustments

 

(115

)

 

 

(86

)

 

 

(102

)

Non-GAAP net income

$

2,080

 

 

$

1,878

 

 

$

2,023

 

 

 

 

 

 

 

Diluted net income per share:

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted net income per share

$

3.76

 

 

$

3.05

 

 

$

3.49

 

Stock-based and deferred compensation expense

 

1.08

 

 

 

0.98

 

 

 

1.04

 

Amortization of intangibles

 

0.19

 

 

 

0.20

 

 

 

0.19

 

Acquisition-related expenses (1)

 

 

 

 

0.06

 

 

 

 

Loss contingency (reversal) (2)

 

(0.10

)

 

 

 

 

 

 

Investment (gains) losses, net

 

(0.03

)

 

 

(0.01

)

 

 

(0.01

)

Income tax adjustments

 

(0.25

)

 

 

(0.19

)

 

 

(0.23

)

Non-GAAP diluted net income per share

$

4.65

 

 

$

4.09

 

 

$

4.48

 

 

 

 

 

 

 

Shares used to compute diluted net income per share

 

448

 

 

 

459

 

 

 

451

 

(1)

Associated with the Figma transaction, and includes deal costs, certain professional fees and the termination fee

(2)

Associated with an IP litigation matter

 

Non-GAAP Results (continued)

 

The following table shows Adobe’s third quarter fiscal year 2024 GAAP tax rate reconciled to the non-GAAP tax rate included in this release.

 

 

Third Quarter
Fiscal 2024

Effective income tax rate:

 

 

 

GAAP effective income tax rate

 

17.5

 

%

Income tax adjustments

 

2.5

 

 

Stock-based and deferred compensation expense

 

(1.4

)

 

Amortization of intangibles

 

(0.2

)

 

Loss contingency reversal (2)

 

0.1

 

 

Non-GAAP effective income tax rate (3)

 

18.5

 

%

(2)

Associated with an IP litigation matter

(3)

Represents Adobe’s fixed long-term non-GAAP tax rate based on projections and currently available information through fiscal 2025

 

Reconciliation of GAAP to Non-GAAP Financial Targets

 

The following tables show Adobe's fourth quarter fiscal year 2024 financial targets reconciled to non-GAAP financial targets included in this release.

 

(Shares in millions)

Fourth Quarter Fiscal 2024

 

Low

 

High

Diluted net income per share:

 

 

 

 

 

 

 

GAAP diluted net income per share

$

3.58

 

 

 

$

3.63

 

 

Stock-based and deferred compensation expense

 

1.03

 

 

 

 

1.03

 

 

Amortization of intangibles

 

0.19

 

 

 

 

0.19

 

 

Lease-related asset impairments and other charges (4)

 

0.20

 

 

 

 

0.20

 

 

Income tax adjustments

 

(0.37

)

 

 

 

(0.37

)

 

Non-GAAP diluted net income per share

$

4.63

 

 

 

$

4.68

 

 

 

 

 

 

Shares used to compute diluted net income per share

445

 

 

 

445

 

 

 

 

Fourth Quarter
Fiscal 2024

Effective income tax rate:

 

 

 

GAAP effective income tax rate

 

16.0

 

%

Stock-based and deferred compensation expense

 

(1.1

)

 

Amortization of intangibles

 

(0.2

)

 

Lease-related asset impairments and other charges (4)

 

(0.2

)

 

Income tax adjustments

 

4.0

 

 

Non-GAAP effective income tax rate (3)

 

18.5

 

%

(3)

Represents Adobe’s fixed long-term non-GAAP tax rate based on projections and currently available information through fiscal 2025

(4)

Associated with the optimization of our leased facilities, and primarily includes impairment charges related to certain operating lease right-of-use assets and leasehold improvements

Use of Non-GAAP Financial Information

Adobe continues to provide all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Adobe uses non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. Adobe's management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Adobe presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Adobe's operating results. Adobe believes these non-GAAP financial measures are useful because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. This allows institutional investors, the analyst community and others to better understand and evaluate our operating results and future prospects in the same manner as management.

Adobe's management believes it is useful for itself and investors to review, as applicable, both GAAP information as well as non-GAAP measures, which may exclude items such as stock-based and deferred compensation expenses, amortization of intangibles, investment gains and losses, income tax adjustments, and the income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes. Adobe uses these non-GAAP measures in order to assess the performance of Adobe's business and for planning and forecasting in subsequent periods. Whenever such a non-GAAP measure is used, Adobe provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed above.

Investor Relations Contact

Jonathan Vaas

Adobe

ir@adobe.com

Public Relations Contact

Ashley Levine

Adobe

adobepr@adobe.com

Source: Adobe

FAQ

What was Adobe's (ADBE) revenue in Q3 fiscal 2024?

Adobe reported record revenue of $5.41 billion in Q3 fiscal 2024, representing 11% year-over-year growth.

How much was Adobe's (ADBE) Digital Media net new ARR in Q3 2024?

Adobe's Digital Media net new ARR was $504 million in Q3 fiscal 2024.

What was Adobe's (ADBE) GAAP and non-GAAP EPS for Q3 2024?

Adobe's GAAP diluted earnings per share was $3.76, and non-GAAP EPS was $4.65 for Q3 fiscal 2024.

How much did Adobe's (ADBE) Document Cloud revenue grow in Q3 2024?

Adobe's Document Cloud revenue grew 18% year-over-year to $807 million in Q3 fiscal 2024.

What is Adobe's (ADBE) revenue projection for Q4 fiscal 2024?

Adobe projects total revenue between $5.50 billion to $5.55 billion for Q4 fiscal 2024.

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