Adobe Inc (ADBE) Q1 2024 Earnings Report

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Adobe Inc

ADBE

$346.26 5.33%

Exchange: NASDAQ | Sector: Technology | Industry: Software Infrastructure

Q1 2024

Published: Mar 27, 2024

Earnings Highlights

Revenue of $5.18B up 6% year-over-year
EPS of $1.36 decreased by 55.4% from previous year
Gross margin of 87.8%
Net income of 620.00M
""We're delivering on our strategy to unleash creativity for all, accelerate document productivity, and power digital businesses." - Shantanu Narayen, CEO" - Shantanu Narayen

ADBE

Adobe Inc

Period Q1 2024

Currency USD

Report Type Quarterly Earnings

Generated Dec 7, 2025

Executive Summary

Adobe Inc (ADBE) reported robust financial results for Q1 2024, achieving revenue of $5.18 billion, marking a 12% year-over-year increase. The company demonstrated significant gains across its Digital Media, Document Cloud, and Experience Cloud segments, reflecting the essential role Adobe products play in the digital economy. Management emphasized the strong demand for AI-powered solutions, particularly the integration of generative AI in products like Creative Cloud and Acrobat. Despite a one-time charge from the Figma transaction impacting GAAP EPS, the underlying financial strength suggests a positive trajectory moving into Q2 and beyond.

Key Performance Indicators

Revenue

Increasing

5.18B

QoQ: 2.65% | YoY: 5.97%

Gross Profit

Increasing

4.55B

87.80% margin

QoQ: 3.08% | YoY: 5.57%

Operating Income

Increasing

1.91B

QoQ: 9.41% | YoY: 12.37%

Net Income

Decreasing

620.00M

QoQ: -58.19% | YoY: -55.81%

EPS

Decreasing

1.37

QoQ: -57.98% | YoY: -55.37%

Revenue Trend

Margin Analysis

Financial Highlights

- Revenue: $5.18 billion, up 12% YoY
- Gross Profit: $4.55 billion, with a gross margin of 87.8%.
- Operating Income: $1.91 billion, 36.8% operating margin.
- Net Income: $620 million, resulting in a GAAP EPS of $1.36 and a non-GAAP EPS of $4.48, an 18% YoY increase (without the one-off Figma payment effect, EPS would be significantly higher).
- Digital Media Revenue: $3.82 billion, growing 12% YoY, with a net new ARR of $432 million.
- Document Cloud Revenue: $750 million, up 18% YoY.
- Experience Cloud Revenue: $1.29 billion, a 12% increase, highlighting ongoing shifts towards digital customer experience management.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	5.18B	5.97%	2.65%
Gross Profit	4.55B	5.57%	3.08%
Operating Income	1.91B	12.37%	9.41%
Net Income	620.00M	-55.81%	-58.19%
EPS	1.37	-55.37%	-57.98%

Key Financial Ratios

Gross Profit Margin

Excellent

87.80%

Gross profit margin is exceptional, indicating strong pricing power and operational efficiency

Operating Profit Margin

Excellent

36.80%

Operating margin is exceptional, indicating strong pricing power and operational efficiency

Net Profit Margin

Good

12.00%

Net profit margin is healthy and competitive within industry standards

Return on Assets

Weak

2.16%

Return on assets suggests inefficient capital allocation

Return on Equity

Weak

4.01%

Return on equity suggests inefficient capital allocation

Current Ratio

Adequate

1.05

Current ratio meets minimum requirements but limited cushion

Debt to Equity

Conservative

0.26

Debt-to-equity shows conservative leverage and low financial risk

P/E Ratio

High Growth

104.29x

Very high P/E indicates aggressive growth expectations, higher risk

Price to Book

High Premium

16.73x

Very high premium suggests asset-light business model or lofty expectations

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q4 2024	5,606.00	3.80	+11.1%	View
Q3 2024	5,408.00	3.76	+7.1%	View
Q2 2024	5,309.00	3.49	+8.6%	View
Q1 2024	5,182.00	1.36	+6.0%	View
Q4 2023	5,048.00	3.23	+4.8%	View

Adobe Inc (ADBE) Q1 2024 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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