NASDAQ$ADBE

Adobe Systems Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Adobe's Q4 2023 financial results were reported, revealing record revenue and strong growth across key segments.

Adobe reported record Q4 revenue of $5.05 billion, representing a 12% year-over-year growth. The company's diluted earnings per share was $3.23 on a GAAP basis and $4.27 on a non-GAAP basis. Strong performance was driven by growth in Digital Media and Digital Experience segments.

  • Adobe achieved revenue of $5.05 billion in Q4 2023, a 12% year-over-year increase.
  • GAAP diluted earnings per share was $3.23, and non-GAAP diluted earnings per share was $4.27.
  • Digital Media segment revenue reached $3.72 billion, with a 13% year-over-year growth.
  • Remaining Performance Obligations (RPO) exiting the quarter were $17.22 billion.

Headline financials

Total Revenue

$5.05B

Previous: $4.53B+11.6%
EPS (adj)

$4.27

Previous: $3.60+18.6%
Digital Media ARR

$15.2B

Previous: $14B+8.6%
Remaining Performance Obligations

$17.2B

Previous: $15.2B+13.4%
Capital Expenditures

$47M

Previous: $91M-48.4%
Free Cash Flow

$1.55B

Previous: $2.23B-30.6%
Net Income

$1.48B

Previous: $1.18B+25.7%
Operating Income

$1.74B

Previous: $1.51B+15.4%
Gross Profit

$4.41B

Previous: $3.96B+11.5%
Cash & Equivalents

$7.14B

Previous: $4.24B+68.6%
Total Assets

$29.8B

Previous: $27.2B+9.6%
R&D Expense

$889M

No prior period
Stock-Based Comp

$427M

Previous: $388M+10.1%

Revenue & EPS history

Adobe · Revenue · Quarterly

$5.05B

Q4 2023+11.6%vs Q4 2022
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 fiscal year 2024 and first quarter targets, factoring in macroeconomic and foreign exchange environments. These targets do not reflect the planned acquisition of Figma.

Tailwinds

  • Total revenue is projected to be between $21.30 billion and $21.50 billion for fiscal year 2024.
  • Digital Media net new ARR is expected to be approximately $1.90 billion for fiscal year 2024.
  • Digital Media segment revenue is targeted between $15.75 billion and $15.85 billion for fiscal year 2024.
  • GAAP earnings per share is forecasted between $13.45 and $13.85 for fiscal year 2024.
  • Non-GAAP earnings per share is projected between $17.60 and $18.00 for fiscal year 2024.

Headwinds

  • Targets do not reflect the planned acquisition of Figma.
  • Changes to foreign exchange rates resulted in a $160 million upward revaluation to Adobe’s total Digital Media ARR balance entering fiscal 2024.
  • First quarter fiscal year 2024 total revenue is projected between $5.10 billion and $5.15 billion.
  • First quarter fiscal year 2024 Digital Media net new ARR is expected to be approximately $410 million.
  • First quarter fiscal year 2024 GAAP earnings per share is forecasted between $3.35 and $3.40.

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 Q4 2023

Historical avgQ4 2023

-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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