Adobe, a big software company specializing in digital content creation, management, and user experience tools, reported a record-breaking fiscal year, achieving its highest-ever annual revenue.
However, analysts remain cautious about the company’s growth trajectory as concerns about slowing product and sales momentum persist.
200 online retailers in the Top 1000 use Adobe Analytics for their web analytics. 97 use it for site design and development. Top 1000 online retailers also use it for content delivery and management, as an ecommerce platform, a marketing platform, for personalization and more.
The Top 1000 is Digital Commerce 360’s database of North America’s largest online retailers based on their annual ecommerce sales.
Adobe revenue in fiscal 2024
For its fiscal year ending Nov. 29, Adobe reported revenue of $21.505 billion. That’s an 11% increase from $19.409 billion in 2023. Net income for the year also rose to $5.560 billion, compared to $5.428 billion in the previous year.
The fourth quarter was particularly strong for Adobe, with revenue reaching $5.606 billion. That’s also an 11% year-over-year increase from $5.048 billion in Q4 2023. Its quarterly net income climbed to $1.683 billion in Q4, from $1.483 billion in the same period last year.
“In Q4, we achieved revenue of $5.61 billion, representing 11% year-over-year growth. Our digital media business delivered record net new annual recurring revenue (ARR) of $578 million,” said Adobe CEO Shantanu Narayen during the year-end earnings call. “Our digital experience business achieved subscription revenue of $1.27 billion, representing 12% year-over-year growth. 2024 was a year of records for Adobe.”
Advancements in AI
Adobe highlighted significant progress in artificial intelligence (AI) innovation throughout the year. The company introduced multiple generative AI models under its Adobe Firefly family, including tools for imaging, vector design, and video. These tools, designed for commercial safety and high-quality output, enhance user control across Adobe’s applications.
“We hit several new milestones with our AI innovations, enabling us to add more than $2 billion in digital media net new ARR and surpass $1 billion in the ending book of business for Adobe Experience Platform and native apps,” Narayen said. “The digital experience business also crossed $5 billion in revenue.”
Analyst concerns despite strong performance
Despite Adobe’s impressive achievements, Wall Street analysts are expressing concerns about the company’s future growth. For fiscal 2025, Adobe has forecast revenue between $23.30 billion and $23.55 billion, falling short of analysts’ expectations.
RBC analyst Matthew Swanson pointed to uncertainty around Adobe’s generative AI monetization strategy, writing, “While the company remains on track with its GenAI product roadmap, the lack of explicit monetization metrics has made it harder for investors to get comfortable with the progress.”
Adobe remains a dominant player in digital media and experience tools, with a durable foundation built on innovation and record financial performance. However, its conservative growth projections and questions about the monetization of its generative AI offerings will remain focal points for analysts and investors in the coming year.
Sign up
Sign up for a complimentary subscription to Digital Commerce 360 B2B News, published 4x/week. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at [email protected]. Follow him on Twitter @markbrohan. Follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube.
Favorite