On December 13, 2023, Adobe Inc (ADBE, Financial) released its 8-K filing, announcing a record-setting performance for the fourth quarter and the full fiscal year 2023. The company achieved its first $5 billion revenue quarter, with a total annual revenue of $19.41 billion, marking a significant milestone in its growth trajectory.
Fiscal Year 2023 Performance Highlights
Adobe Inc (ADBE, Financial) reported a 10% year-over-year increase in annual revenue, reaching $19.41 billion, with a GAAP diluted earnings per share (EPS) of $11.82 and a non-GAAP EPS of $16.07. The company's GAAP operating income stood at $6.65 billion, while non-GAAP operating income was $8.92 billion. Net income for the year was reported at $5.43 billion on a GAAP basis and $7.38 billion on a non-GAAP basis. Operating cash flows were a robust $7.30 billion, and the company repurchased approximately 11.5 million shares during the fiscal year.
Q4 FY2023 Financial and Business Segment Performance
For the fourth quarter, Adobe Inc (ADBE, Financial) reported a revenue of $5.05 billion, which is a 12% increase year-over-year or 13% in constant currency. The GAAP operating income for the quarter was $1.74 billion, and non-GAAP operating income was $2.34 billion. GAAP net income reached $1.48 billion, with non-GAAP net income at $1.96 billion. The company also generated $1.60 billion in cash flows from operations and ended the quarter with Remaining Performance Obligations (RPO) totaling $17.22 billion.
The Digital Media segment's revenue was $3.72 billion, a 13% year-over-year growth, with Creative revenue growing to $3.00 billion and Document Cloud revenue reaching $721 million. The Digital Experience segment revenue was $1.27 billion, a 10% year-over-year growth.
Looking Ahead: Fiscal Year 2024 Financial Targets
Adobe Inc (ADBE, Financial) provided its fiscal year 2024 targets, projecting total revenue to be between $21.30 billion and $21.50 billion. The company expects Digital Media net new ARR to be approximately $1.90 billion, with segment revenue for Digital Media and Digital Experience estimated to be $15.75 billion to $15.85 billion and $5.275 billion to $5.375 billion, respectively. The GAAP tax rate is anticipated to be around 18.0%, with a non-GAAP tax rate of approximately 18.5%. EPS is targeted to be between $13.45 and $13.85 on a GAAP basis and between $17.60 and $18.00 on a non-GAAP basis.
Adobe's CEO, Shantanu Narayen, expressed confidence in the company's strategy and market leadership, stating,
Adobe drove record revenue of $19.41 billion in FY23 and 17 percent year-over-year EPS growth, with strong momentum across Creative Cloud, Document Cloud and Experience Cloud."CFO Dan Durn highlighted the company's
world-class margins and operating cash flows of $7.30 billion,"underscoring Adobe's strong financial position.
Adobe Inc (ADBE, Financial) continues to demonstrate its ability to drive growth and innovation in the digital media and digital experience markets, positioning itself favorably for the upcoming fiscal year.
Explore the complete 8-K earnings release (here) from Adobe Inc for further details.
