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03Detailed Report
ADBE
Adobe Inc
Period
Q1 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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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
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