Adobe(ADBE) - 2024 Q1 - Quarterly Results

Revenue and Growth - Adobe achieved Q1 revenue of $5.18 billion, representing 11% year-over-year growth (12% in constant currency)[2] - Digital Media segment revenue grew to $3.82 billion, up 12% year-over-year (13% in constant currency)[2] - Document Cloud revenue reached $750 million, an 18% year-over-year growth[2] - Digital Experience segment revenue grew 10% year-over-year to $1.29 billion[3] - Q2 revenue target set at $5.25 billion to $5.30 billion, with Digital Media net new ARR expected at ~$440 million[6] Annual Recurring Revenue (ARR) and Performance Obligations - Digital Media ARR grew to $15.76 billion, with Creative ARR at $12.78 billion and Document Cloud ARR at $2.98 billion[3] - Remaining Performance Obligations (RPO) increased by 16% year-over-year to $17.58 billion[2] Financial Performance and Income - GAAP operating income for Q1 was $907 million, while non-GAAP operating income was $2.47 billion[2] - Net income for the three months ended March 1, 2024, was $620 million, compared to $1,247 million in the same period last year[17] - Non-GAAP operating income for the three months ended March 1, 2024, was $2,467 million, compared to $2,131 million in the same period last year[19] - Non-GAAP net income for the three months ended March 1, 2024, was $2,046 million, compared to $1,746 million in the same period last year[19] - Non-GAAP diluted net income per share for the three months ended March 1, 2024, was $4.48, compared to $3.80 in the same period last year[19] - Non-GAAP diluted net income per share for the second quarter fiscal year 2024 is targeted between $4.35 and $4.40[22] Cash Flow and Share Repurchase - Cash flows from operations in Q1 were $1.17 billion[2] - Net cash provided by operating activities for the three months ended March 1, 2024, was $1,174 million, down from $1,693 million in the same period last year[17] - Adobe repurchased approximately 3.1 million shares during the quarter[2] - Adobe repurchased $2,000 million of common stock in the three months ended March 1, 2024, compared to $1,400 million in the same period last year[17] - Cash and cash equivalents at the end of the period were $6,254 million, compared to $4,072 million in the same period last year[17] Tax Rates and Non-GAAP Measures - GAAP effective income tax rate for the first quarter fiscal year 2024 was 36.0%, while the non-GAAP effective income tax rate was 18.5%[21] - Adobe uses non-GAAP financial measures to evaluate ongoing operations and for internal planning and forecasting purposes[23]