NASDAQ$ADBE

Adobe Systems Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Adobe achieved record revenue driven by strong growth across Creative Cloud, Document Cloud and Experience Cloud.

Adobe reported record revenue of $5.31 billion in Q2 fiscal year 2024, representing a 10% year-over-year growth. The company's success was driven by strong growth across Creative Cloud, Document Cloud, and Experience Cloud. Adobe raised its annual targets for Digital Media net new ARR, Digital Experience subscription revenue, and EPS.

  • Adobe achieved record revenue of $5.31 billion, a 10% year-over-year increase.
  • GAAP diluted earnings per share was $3.49, and non-GAAP diluted earnings per share was $4.48.
  • Digital Media segment revenue was $3.91 billion, up 11% year-over-year.
  • Digital Experience segment revenue was $1.33 billion, up 9% year-over-year.

Headline financials

Total Revenue

$5.31B

Previous: $4.82B+10.2%
EPS

$3.49

Previous: $3.91-10.7%
Digital Media ARR

$16.1B

Previous: $14.1B+14.1%
Capital Expenditures

-$78M

Previous: -$222M+64.9%
Free Cash Flow

$1.5B

Previous: $1.07B+39.3%
Net Income

$1.57B

Previous: $1.3B+21.5%
Operating Income

$1.89B

Previous: $1.62B+16.1%
Gross Profit

$4.71B

Previous: $4.24B+11.0%
Cash & Equivalents

$7.66B

Previous: $5.46B+40.4%
Total Assets

$30B

Previous: $27.8B+7.8%
R&D Expense

$984M

No prior period
Stock-Based Comp

$467M

Previous: $433M+7.9%

Revenue & EPS history

Adobe · Revenue · Quarterly

$5.31B

Q2 2024+10.2%vs Q2 2023
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Adobe · $4.99B total across 2 segments · Q4 2023

  • Digital Media
    $3.72B+12.7%
  • Digital Experience
    $1.27B+10.4%

Forward guidance

Adobe is providing third quarter targets and updated fiscal year 2024 targets, factoring in current expectations for the macroeconomic environment and FX outlook.

Tailwinds

  • Total revenue is expected to be between $5.33 billion and $5.38 billion.
  • Digital Media net new ARR is expected to be approximately $460 million.
  • Digital Media segment revenue is projected to be between $3.95 billion and $3.98 billion.
  • Digital Experience segment revenue is anticipated to be between $1.325 billion and $1.345 billion.
  • Non-GAAP earnings per share are projected to be between $4.50 and $4.55.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.5%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-0.3%

Avg return

30 days after

43%

32 / 74 earnings

Positive

+14.2%

Q2 2024

Best reaction

-19.4%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-1.2%-4.6%
Q1 2026-0.1%-8.8%-16.5%
Q4 2025+1.6%+1.4%-2.7%
Q3 2025-3.4%+3.3%-3.7%
Q2 2025-0.8%-0.3%-5.0%
Q1 2025-13.9%-10.8%-19.6%
Q4 2024-13.2%-15.6%-25.8%
Q3 2024-7.5%-11.3%-14.6%
Q2 2024+14.2%+13.6%+21.6%
Q1 2024-14.1%-9.1%-17.3%
Q4 2023-7.7%-5.4%-5.9%
Q3 2023-4.5%-2.1%-0.9%
Q2 2023+3.3%+1.3%+7.4%
Q1 2023+6.0%+8.9%+13.8%
Q4 2022-0.4%-0.5%+1.3%
Q3 2022-19.4%-21.7%-22.5%
Q2 2022-4.3%-3.7%+0.8%
Q1 2022-6.8%-4.8%-8.0%
Q4 2021-11.7%-11.6%-17.4%
Q3 2021-2.4%-2.9%-0.4%
Q2 2021+4.1%+6.0%+11.6%
Q1 2021-0.2%+3.7%+12.1%
Q4 2020-1.6%-0.2%+0.3%
Q3 2020-2.0%-3.8%+3.1%
Q2 2020-0.1%+1.2%+14.6%
Q1 2020+6.4%-1.1%+1.1%
Q4 2019+4.7%+6.3%+11.9%
Q3 2019-1.1%-1.8%-4.8%
Q2 2019+5.7%+8.6%+12.5%
Q1 2019-2.8%-1.5%+2.8%
Q4 2018-6.3%-7.9%-3.3%
Q3 2018+2.6%+1.1%-7.1%
Q2 2018-1.7%-1.7%+1.0%
Q1 2018+3.3%+5.2%+2.6%
Q4 2017+0.4%-1.1%+10.3%
Q3 2017-3.7%-4.7%+10.2%
Q2 2017+2.8%+3.6%+6.8%
Q1 2017+4.0%+2.4%+5.7%
Q4 2016-2.1%-0.0%+2.6%
Q3 2016+8.1%+7.8%+9.4%
Q2 2016-4.1%-5.9%-1.7%
Q1 2016+6.0%
Q4 2015+2.1%
Q3 2015+0.9%
Q2 2015-1.3%
Q1 2015-1.8%
Q4 2014+8.8%
Q3 2014-4.2%
Q2 2014+8.1%
Q1 2014-0.8%
Q4 2013+11.4%
Q3 2013+9.2%
Q2 2013+5.5%
Q1 2013+3.4%
Q4 2012+4.5%
Q3 2012+6.0%
Q2 2012-2.0%
Q1 2012-2.0%
Q4 2011-0.9%
Q3 2011+1.7%
Q2 2011+2.1%
Q1 2011-0.9%
Q4 2007-3.1%
Q4 2010-3.1%
Q3 2010-5.0%
Q2 2010-5.6%
Q1 2010+0.2%
Q1 2009+0.2%
Q4 2009-4.6%
Q3 2009-2.1%
Q3 2008-2.1%
Q2 2008+0.4%
Q2 2009+0.4%
Q4 2008+0.4%

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