Adobe Inc (NASDAQ:ADBE) reported second-quarter earnings for 2024 that exceeded Wall Street expectations, driving its shares up by 14.7% in afterhours trading.
The software giant posted an adjusted earnings per share of $4.48, surpassing the consensus estimate of $4.39. Revenue reached $5.31 billion, also beating the expected $5.29 billion.
For the third quarter, Adobe forecasts an EPS range of $4.50 to $4.55, higher than the consensus estimate of $4.48. However, its revenue projection of $5.33 billion to $5.38 billion fell short of the anticipated $5.4 billion.
Adobe raised its full-year 2024 guidance, now expecting an EPS of $18 to $18.20, compared to the previous estimate of $17.60 to $18 and the consensus of $18.02. The company projects full-year revenue between $21.4 billion and $21.5 billion, slightly below the expected $21.46 billion.
Key performance metrics showed strong growth, with Digital Media revenue up 11% year-over-year to $3.91 billion and Digital Experience revenue increasing 9% to $1.33 billion. Creative Revenue rose by 10% to $3.13 billion, and Document Cloud Revenue surged by 19% to $782 million.
Adobe's CEO Shantanu Narayen attributed the record revenue to the company's innovative AI strategy and robust product offerings across its core platforms.
Adobe also repurchased approximately 4.6 million shares during the quarter and reported cash flows from operations of $1.94 billion.