Adobe Records Revenue of $5 Billion in a Single Quarter for the First Time
Adobe has capped its massive 2023 year with a record: it has achieved revenue of $5.05 billion in the fourth fiscal quarter, the first time it has exceeded $5 billion in a single quarter of the company’s history.
The $5.05 billion fourth quarter adds to the other excellent financial quarters for the company, allowing it to report $19.41 billion in revenue, equaling 13% year-over-year (YoY) growth.
“Adobe drove record revenue of $19.41 billion in FY23 and 17 percent year-over-year EPS growth, with strong momentum across Creative Cloud, Document Cloud and Experience Cloud. Adobe’s strategy, category leadership, ground-breaking innovation, exceptional talent and global customer base position us well for 2024 and beyond,” Shantanu Narayen, chair and CEO of Adobe, says.
Adobe’s landmark quarter was led by the digital media division, which grew to $15.17 billion with Q4 revenue of $3.72 billion (+14% YoY), Document cloud which recorded revenue of $721 million (+17% YoY), Experience Cloud which saw revenue of $1.27 billion representing (+11% YoY) and subscription revenue of $1.12 billion (+12% YoY), and of course Creative which saw revenue of $3 billion (+ 14% YoY). Adobe generated $7.30 billion in operating cash flows during the year.
The company is already projecting the first quarter of 2024 to be even more prosperous, anticipating anywhere from between $5.10 to $5.15 billion in revenue over the period.
On the year, Adobe’s Digital Media segment was the most impressive and saw revenue of of 14.22 billion, which is an 11% YoY growth. Inside that, the most impressive was of course Adobe’s Creative division, which saw revenue grow to 11.52 billion, representing 10% YoY growth.
Adobe’s impressive numbers demonstrate that despite pressure from growing competitors like Canva and Picsart, its bottom line has been basically unaffected and revenue continues to rise. Earlier this year, the company announced price increases for the Creative Cloud subscription plans, even amid what were at the time record revenue numbers.
The runaway success of Adobe can be tied directly to the move to the subscription-based Creative Cloud, so it’s no wonder that competitors in the space are all moving towards similar revenue models. Luminar Neo announced it would go subscription only today, which follows moves from Capture One, Pixelmator Photo, and Photo Mechanic.
Of note, Adobe’s proposed acquisition of Figma is currently in flux as the Competition and Markets Authority (CMA), the competition watchdog in the United Kingdom, has provisionally determined that Adobe’s proposed $20 billion acquisition of Figma would be harmful to the marketplace.
Image credits: Header photo licensed via Depositphotos.
