Adobe Q2 Earnings: Revenue Beat, EPS Beat, Strong Guidance, Momentum Due To 'Highly Differentiated Approach To AI' And More

Adobe Inc ADBE reported financial results for the second quarter after the market close on Thursday. Here’s a look at the key metrics from the quarter.

Q2 Earnings: Adobe reported second-quarter revenue of $5.31 billion, beating the consensus estimate of $5.292 billion. The company reported quarterly adjusted earnings of $4.48 per share, beating analyst estimates of $4.39 per share.

Adobe has now beaten analyst estimates on both the top and bottom lines in six consecutive quarters, according to Benzinga Pro.

Total revenue was up 10% on a year-over-year basis. Remaining performance obligations were $17.86 billion at the end of the quarter. Cash flows from operations totaled $1.94 billion in the second quarter. Adobe noted that it repurchased approximately 4.6 million shares during the period.

“Adobe achieved record revenue of $5.31 billion driven by strong growth across Creative Cloud, Document Cloud and Experience Cloud,” said Shantanu Narayen, chair and CEO of Adobe.

“Our highly differentiated approach to AI and innovative product delivery are attracting an expanding universe of customers and providing more value to existing users.”

Outlook: Adobe expects third-quarter revenue to be in the range of $5.33 billion to $5.38 billion versus estimates of $5.03 billion. The company anticipates third-quarter adjusted earnings of $4.50 to $4.55 per share versus estimates of $4.17 per share.

Adobe also introduced full-year 2024 guidance. The company expects full-year revenue to be between $21.4 billion and $21.5 billion versus estimates of $19.98 billion. Adobe sees full-year adjusted earnings in the range of $18 to $18.20 per share versus estimates of $16.78 per share, according to Benzinga Pro.

Management will hold a conference call to discuss its quarterly results from 5 p.m. to 6 p.m. ET.

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ADBE Price Action: Adobe shares were down approximately 23% year-to-date heading into the print. At time of publication, the stock was up 14.39% at $524.74 in after-hours trading, according to Benzinga Pro.

Photo: Shutterstock.