Shantanu Narayen: "2024 was a year of records for Adobe, with a strong focus on AI innovations shaping our trajectory for growth."
— Shantanu Narayen
03Detailed Report
ADBE
Adobe Inc
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
In Q4 2024, Adobe Inc reported a revenue of $5.61 billion, representing a year-over-year increase of 11%. The digital media business achieved record net new Annual Recurring Revenue (ARR) of $578 million. Management highlighted strong AI-driven growth across products, particularly with Adobe Firefly, which contributed to a cumulative total of 16 billion content generations. This quarter also marked the culmination of a remarkable fiscal year, with total revenues reaching $21.51 billion, driven by robust performance in both digital media and experience segments. The management expressed confidence in the growth trajectory for FY2025, introducing guidance of $23.30 billion to $23.55 billion in revenue, supported by innovative solutions and integrations in AI and content generation.
Key Performance Indicators
Revenue
Increasing
5.61B
QoQ: 3.66% | YoY: 11.05%
Gross Profit
Increasing
4.99B
89.01% margin
QoQ: 2.80% | YoY: 13.05%
Operating Income
Increasing
1.96B
QoQ: -1.76% | YoY: 12.28%
Net Income
Increasing
1.68B
QoQ: -0.06% | YoY: 13.49%
EPS
Increasing
3.82
QoQ: 1.06% | YoY: 17.18%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $5.61 billion (11% YoY growth)
- Digital Media Revenue: $4.15 billion (12% YoY growth)
- Net New Digital Media ARR: $578 million (record for Adobe)
- Digital Experience Revenue: $1.40 billion (10% YoY growth)
- Gross Profit Margin: 89% (YoY steady)
- Operating Income: $1.96 billion (12% YoY growth)
- EPS: $3.79 GAAP, $4.81 Non-GAAP (GAAP up 17% YoY, Non-GAAP up 13% YoY)
- Cash flow from operations: $2.92 billion
Management commented on the implications of AI innovations, marking the transformative shifts in both Creative and Document Cloud segments, driving unprecedented levels of user engagement and product adoption.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
5.61B
11.05%
3.66%
Gross Profit
4.99B
13.05%
2.80%
Operating Income
1.96B
12.28%
-1.76%
Net Income
1.68B
13.49%
-0.06%
EPS
3.82
17.18%
1.06%
Key Financial Ratios
Gross Profit Margin
Excellent
89.00%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
34.90%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
30.00%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
5.57%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
11.90%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.07
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Moderate
0.43
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Growth
33.80x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
16.13x
Very high premium suggests asset-light business model or lofty expectations
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