ADBE Q3 2024 Earnings

Call Details

• Call Title: Adobe Q3 2024 Earnings Call
• Date: September 12, 2024 at 9:00 PM UTC
• Management Team:
  • Jonathan Voss (VP of Investor Relations)
  • Shantanu Narayen (Chairman and CEO)
  • David Wadhwani (President of Digital Media)
  • Anil Chakravarthy (President of Digital Experience)
  • Dan Dern (Executive Vice President and CFO)

Call Summary

Financial Performance

• Adobe reported revenue of $5.41B for Q3 FY24, representing 11% year-over-year growth.
• GAAP diluted earnings per share were $3.76, which was up 23% year-over-year on a GAAP basis.
• Non-GAAP diluted earnings per share were $4.65, which was up 14% year-over-year on a non-GAAP basis.
• Cash flows from operations in the quarter were $2.02B and ending cash and short-term investments were $7.52B.
• Remaining performance obligations (RPO) exited the quarter at $18.14B, growing 15% year-over-year reported and 16% in constant currency.
• Current RPO exiting the quarter grew 12% year-over-year.
• Digital media revenue was $4.00B and digital experience revenue was $1.35B in the quarter.

Guidance

• Q4 revenue guidance is $5.50B to $5.55B for fiscal Q4 2024.
• Q4 digital media net new ARR guidance is approximately $550M.
• Q4 digital media segment revenue guidance is $4.09B to $4.12B and digital experience revenue guidance is $1.36B to $1.38B.
• Q4 digital experience subscription revenue guidance is $1.23B to $1.25B.
• Q4 tax rate guidance is ~16% on a GAAP basis and ~18.5% on a non-GAAP basis.
• Q4 EPS guidance is $3.58 to $3.63 GAAP and $4.63 to $4.68 non-GAAP.