On June 13, 2024, Adobe Inc (ADBE, Financial) released its 8-K filing for the second quarter of fiscal year 2024, reporting record revenue and raising its annual targets. Adobe, a leading provider of content creation, document management, and digital marketing software, operates through three segments: Digital Media, Digital Experience, and Publishing.
Financial Performance Overview
Adobe Inc (ADBE, Financial) reported revenue of $5.31 billion for Q2 FY2024, surpassing the analyst estimate of $5.29 billion. This represents a 10% year-over-year growth, or 11% in constant currency. The company's diluted earnings per share (EPS) on a GAAP basis was $3.49, exceeding the estimated $3.39, while non-GAAP EPS stood at $4.48.
“Adobe achieved record revenue of $5.31 billion driven by strong growth across Creative Cloud, Document Cloud, and Experience Cloud,” said Shantanu Narayen, chair and CEO, Adobe.
Segment Performance
The Digital Media segment, which includes Creative Cloud and Document Cloud, generated $3.91 billion in revenue, marking an 11% year-over-year growth. Creative revenue grew to $3.13 billion, a 10% increase, while Document Cloud revenue surged by 19% to $782 million.
The Digital Experience segment reported $1.33 billion in revenue, a 9% year-over-year increase. Subscription revenue within this segment grew by 13% to $1.20 billion.
Key Financial Metrics
| Metric | Q2 FY2024 | Q2 FY2023 |
|---|---|---|
| Total Revenue | $5.31 billion | $4.82 billion |
| GAAP Net Income | $1.57 billion | $1.29 billion |
| Non-GAAP Net Income | $2.02 billion | $1.79 billion |
| Cash Flow from Operations | $1.94 billion | $2.14 billion |
Balance Sheet and Cash Flow
Adobe's balance sheet remains robust with $7.66 billion in cash and cash equivalents, up from $7.14 billion at the end of 2023. The company repurchased approximately 4.6 million shares during the quarter, reflecting its commitment to returning value to shareholders.
Future Outlook
Adobe has raised its annual targets for fiscal year 2024, projecting total revenue between $21.40 billion and $21.50 billion. The company also expects GAAP EPS to range from $11.80 to $12.00 and non-GAAP EPS to be between $18.00 and $18.20.
“Our market-leading products, strong execution, and world-class financial discipline position us well for the second half of 2024 and beyond,” said Dan Durn, executive vice president and CFO, Adobe.
For more detailed financial information, readers can access Adobe's 8-K filing.
Explore the complete 8-K earnings release (here) from Adobe Inc for further details.
