Adobe Inc. Q1 FY2024 results: revenue $5.2 billion, up 11.3% on the year

Adobe Inc. (ADBE) reported revenue of $5.2 billion for Q1 FY2024, the quarter ended 1 March 2024, up 11.3% on the same quarter a year earlier. Net income was $620 million, down 50.3% on the year, and diluted earnings per share $1.36. The figures are the company's own, from the 10-Q it filed with the SEC on 27 March 2024.

Revenue$5.2 billionup 11.3%

Net income$620 milliondown 50.3%

Diluted EPS$1.36

QuarterQ1 FY2024ended 1 March 2024

The quarter, against the one before and a year earlier

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Revenue	5,182	5,048	n/a	n/a
Cost of revenue	590	634	n/a	n/a
Gross profit	4,592	4,414	n/a	n/a
Gross margin	88.6%	87.4%	n/a
Operating income	907	1,743	n/a	n/a
Operating margin	17.5%	34.5%	n/a
Interest expense	27.0	28.0	n/a	n/a
Pre-tax income	968	1,808	n/a	n/a
Income tax	348	325	n/a	n/a
Effective tax rate	36.0%	18.0%	n/a
Net income	620	1,483	n/a	n/a
Net margin	12.0%	29.4%	n/a
Diluted EPS	$1.36	$3.24	n/a	n/a

$ million except per share. Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Operating cash flow	1,174	1,597	n/a	n/a
Capital expenditure	37.0	47.0	n/a	n/a
Free cash flow	1,137	1,550	n/a	n/a
Free cash flow margin	21.9%	30.7%	n/a
Depreciation and amortisation	212	222	n/a	n/a
Share-based compensation	451	427	n/a	n/a
Buybacks	2,000	1,000	n/a	n/a
Diluted shares, weighted	456m	459m	n/a	n/a
Shares outstanding at period end	453m	455m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Total assets	28,751	29,779	n/a	n/a
Cash and equivalents	6,254	7,141	n/a	n/a
Receivables	2,057	2,224	n/a	n/a
Goodwill	12,803	12,805	n/a	n/a
Long-term debt	2,138	3,634	n/a	n/a
Borrowings, as the company tags them	3,650	3,650	n/a	n/a
Operating lease liabilities	378	373	n/a	n/a
Shareholders' equity	15,460	16,518	n/a	n/a

Quarterly results, the last 12 quarters

	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	5,048	5,182	5,309	5,408	5,606	5,714	5,873	5,988	6,194	6,398	6,618	6,760
Cost of revenue	634	590	598	554	616	622	638	642	649	664	715	763
Gross profit	4,414	4,592	4,711	4,854	4,990	5,092	5,235	5,346	5,545	5,734	5,903	5,997
Gross margin	87%	89%	89%	90%	89%	89%	89%	89%	90%	90%	89%	89%
Operating income	1,743	907	1,885	1,992	1,957	2,163	2,109	2,173	2,261	2,418	2,238	2,354
Operating margin	35%	18%	36%	37%	35%	38%	36%	36%	37%	38%	34%	35%
Interest expense	28.0	27.0	41.0	51.0	50.0	62.0	68.0	67.0	66.0	63.0	65.0	66.0
Pre-tax income	1,808	968	1,930	2,042	1,991	2,182	2,101	2,187	2,264	2,422	2,238	2,357
Tax rate	18%	36%	18%	18%	15%	17%	20%	19%	18%	22%	24%	22%
Net income	1,483	620	1,573	1,684	1,683	1,811	1,691	1,772	1,856	1,889	1,712	1,827
Net margin	29%	12%	30%	31%	30%	32%	29%	30%	30%	30%	26%	27%
Diluted EPS	$3.24	$1.36	$3.49	$3.76	$3.75	$4.14	$3.94	$4.18	$4.44	$4.60	$4.25	$4.62
Operating cash flow	1,597	1,174	1,940	2,021	2,921	2,482	2,191	2,198	3,160	2,958	2,165	2,523
Capital expenditure	47.0	37.0	41.0	57.0	48.0	26.0	47.0	72.0	34.0	37.0	58.0	85.0
Free cash flow	1,550	1,137	1,899	1,964	2,873	2,456	2,144	2,126	3,126	2,921	2,107	2,438
Buybacks	1,000	2,000	2,500	2,500	2,500	3,250	3,500	2,057	2,474	2,478	2,111	2,232
Shares outstanding	455m	453m	449m	445m	441m	435m	427m	420m	413m	406m	399m	391m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 1 March 2024, filed 27 March 2024, accession 0000796343-24-000065: the filing on EDGAR. All of Adobe Inc.'s filings: EDGAR company page.

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