NASDAQ$ADBE

Adobe Systems Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Adobe's Q3 2024 performance reflected record revenue, driven by innovation and customer value delivery.

Adobe achieved record Q3 revenue of $5.41 billion, representing 11% year-over-year growth. The company's diluted earnings per share was $3.76 on a GAAP basis and $4.65 on a non-GAAP basis. Net new Digital Media ARR reached $504 million, and exiting RPO surpassed $18 billion, growing 15% year-over-year.

  • Adobe reported record Q3 revenue of $5.41 billion, an 11% increase year-over-year.
  • Net new Digital Media ARR was $504 million, with Digital Media ARR reaching $16.76 billion.
  • GAAP operating income was $1.99 billion, and non-GAAP operating income was $2.52 billion.
  • The company generated cash flows from operations of $2.02 billion.

Headline financials

Total Revenue

$5.41B

Previous: $4.89B+10.6%
EPS

$3.76

Previous: $4.09-8.1%
Digital Media ARR

$16.7B

Previous: $14.6B+14.0%
Capital Expenditures

-$135M

Previous: -$313M+56.9%
Free Cash Flow

$1.55B

Previous: $1.09B+42.1%
Net Income

$1.68B

Previous: $1.4B+20.0%
Operating Income

$1.99B

Previous: $1.7B+17.4%
Gross Profit

$4.85B

Previous: $4.31B+12.6%
Cash & Equivalents

$7.19B

Previous: $6.6B+9.0%
Total Assets

$29.8B

Previous: $29.1B+2.5%
Stock-Based Comp

$474M

Previous: $442M+7.2%

Revenue & EPS history

Adobe · Revenue · Quarterly

$5.41B

Q3 2024+10.6%vs Q3 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 provided fourth quarter targets that factor in current macroeconomic conditions and year-end seasonal strength.

Tailwinds

  • Total revenue is expected to be between $5.50 billion and $5.55 billion.
  • Digital Media net new ARR is projected to be approximately $550 million.
  • Digital Media segment revenue is targeted to be between $4.09 billion and $4.12 billion.
  • Digital Experience segment revenue is expected to be between $1.36 billion and $1.38 billion.
  • Non-GAAP earnings per share are projected to be between $4.63 and $4.68.

Headwinds

  • Targets assume diluted share count of ~445 million for fourth quarter fiscal year 2024.
  • GAAP earnings per share are expected to be between $3.58 and $3.63.
  • GAAP tax rate is expected to be approximately 16.0%.
  • Non-GAAP tax rate is expected to be approximately 18.5%.
  • Current macroeconomic conditions are factored into the targets.

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 Q3 2024

Historical avgQ3 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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