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Adobe(ADBE) - 2024 Q4 - Annual Results
ADBEAdobe(ADBE)2024-12-11 21:06

Revenue Growth and Performance - Adobe achieved record FY2024 revenue of 21.51billion,representing1121.51 billion, representing 11% year-over-year growth[3][10] - Digital Media segment revenue reached 15.86 billion in FY2024, with 12% year-over-year growth, and net new Digital Media ARR exceeded 2.0billion[13]−DocumentCloudrevenuegrewto2.0 billion[13] - Document Cloud revenue grew to 3.18 billion in FY2024, an 18% year-over-year increase[14] - Creative revenue reached 12.68billioninFY2024,with1012.68 billion in FY2024, with 10% year-over-year growth (11% in constant currency)[15] - Digital Experience segment revenue was 5.37 billion in FY2024, with 10% year-over-year growth, and subscription revenue grew 12% to 4.86billion[15]−ForFY2025,Adobetargetstotalrevenueof4.86 billion[15] - For FY2025, Adobe targets total revenue of 23.30 billion to 23.55billion,withDigitalMediasegmentrevenueexpectedtogrow1123.55 billion, with Digital Media segment revenue expected to grow 11% year-over-year[17] - Adobe expects a 200 million foreign exchange headwind to FY2025 revenue due to currency fluctuations[16] Financial Metrics and Cash Flow - Adobe reported record Q4 operating cash flows of 2.92billionandFY2024operatingcashflowsof2.92 billion and FY2024 operating cash flows of 8.06 billion[5][11] - Remaining Performance Obligations (RPO) reached a record 19.96billionattheendofQ4,reflecting1619.96 billion at the end of Q4, reflecting 16% year-over-year growth[6] - Cash and cash equivalents increased to 7.613 billion from 7.141billionyear−over−year[29]−Totalcurrentassetsroseto7.141 billion year-over-year[29] - Total current assets rose to 11.232 billion from 11.084billionyear−over−year[29]−Netcashprovidedbyoperatingactivitiesincreasedto11.084 billion year-over-year[29] - Net cash provided by operating activities increased to 2.921 billion from 1.597billionyear−over−year[31]ProfitabilityandEarnings−GAAPnetincomeforthequarterwas1.597 billion year-over-year[31] Profitability and Earnings - GAAP net income for the quarter was 1.683 billion, up from 1.483billioninthesameperiodlastyear[31]−Non−GAAPoperatingincomeforthequarterwas1.483 billion in the same period last year[31] - Non-GAAP operating income for the quarter was 2.596 billion, compared to 2.343billionintheprioryear[34]−Non−GAAPdilutednetincomepershareforthequarterwas2.343 billion in the prior year[34] - Non-GAAP diluted net income per share for the quarter was 4.81, up from 4.27inthesameperiodlastyear[35]−GAAPeffectiveincometaxrateforthequarterwas15.54.27 in the same period last year[35] - GAAP effective income tax rate for the quarter was 15.5%, with a non-GAAP effective income tax rate of 18.5%[37] - Fiscal year 2025 GAAP diluted net income per share target ranges from 15.80 to 16.10,withanon−GAAPtargetof16.10, with a non-GAAP target of 20.20 to 20.50[38]−Fiscalyear2025GAAPoperatingmargintargetis36.020.50[38] - Fiscal year 2025 GAAP operating margin target is 36.0%, with a non-GAAP target of 46.0%[38] - GAAP diluted net income per share for the first quarter is 3.85, with a high of 3.90forfiscal2025[40]−Non−GAAPdilutednetincomepershareforthefirstquarteris3.90 for fiscal 2025[40] - Non-GAAP diluted net income per share for the first quarter is 4.95, with a high of $5.00 for fiscal 2025[40] - GAAP operating margin is 37.0%, while Non-GAAP operating margin is 47.0%[40] - GAAP effective income tax rate is 19.0%, adjusted to 18.5% for Non-GAAP[40] Share Repurchase and Capital Allocation - Adobe repurchased approximately 17.5 million shares during FY2024 and 4.6 million shares in Q4[7][12] - Shares used to compute diluted net income per share are 439 million[40] Non-GAAP Financial Measures - Adobe uses non-GAAP financial measures for internal planning and forecasting, providing greater transparency for key metrics[41] - Non-GAAP measures exclude items like stock-based compensation, amortization of intangibles, and income tax adjustments[42] - Adobe provides reconciliations of non-GAAP financial measures to GAAP measures for investor evaluation[42]