Adobe Sees Strong Growth in Digital Media Revenue

By Bobby Samwell • Wednesday, March 27 10:17 • Permanent Link

In the first quarter of fiscal 2024, Adobe experienced strong demand across its Digital Media and Digital Experience offerings, driven by its innovative product roadmap. The company's Digital Media segment, which includes Creative Cloud and Document Cloud, saw significant growth in software-based subscription revenue across its portfolio of offerings.

Adobe's Creative Cloud, a subscription-based offering providing desktop tools, mobile applications, and cloud-based services for designing and creating content, saw a 11% year-over-year growth in revenue, reaching $3.07 billion in the first quarter of fiscal 2024, up from $2.76 billion in the same period of fiscal 2023. The company also released Adobe Firefly, a group of creative generative AI models, to enhance its Creative Cloud offerings.

Document Cloud, which includes Adobe Acrobat family of products, saw a revenue increase of 18% year-over-year, reaching $750 million in the first quarter of fiscal 2024, up from $634 million in the same period of fiscal 2023. The total Digital Media segment revenue grew to $3.82 billion in the first quarter of fiscal 2024, up from $3.40 billion in the first quarter of fiscal 2023, representing a 12% year-over-year growth driven by strong net new user growth.

Adobe's success in driving growth in Annualized Recurring Revenue (ARR) positively affected its revenue growth. Creative ARR exiting the first quarter of fiscal 2024 was $12.78 billion, up from $12.49 billion at the end of fiscal 2023. Document Cloud ARR exiting the first quarter of fiscal 2024 was $2.98 billion, up from $2.84 billion at the end of fiscal 2023. Total Digital Media ARR grew to $15.76 billion at the end of the first quarter of fiscal 2024, up from $15.33 billion at the end of fiscal 2023.

In the Digital Experience segment, Adobe Experience Cloud revenue was $1.29 billion in the first quarter of fiscal 2024, up from $1.18 billion in the first quarter of fiscal 2023, representing a 10% year-over-year growth. Subscription revenue in this segment grew to $1.16 billion in the first quarter of fiscal 2024 from $1.04 billion in the first quarter of fiscal 2023, representing a 12% year-over-year growth.

As a result of these announcements, the company's shares have moved -0.2% on the market, and are now trading at a price of $506.45. For more information, read the company's full 10-Q submission here.

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