Adobe Posts Record $6.62 Billion Q2 Revenue, AI-First ARR Tops $500 Million
Quarterly revenue at Adobe reached a record $6.62 billion in the fiscal second quarter, up 13% from a year earlier, while non-GAAP earnings per share rose 18% to $5.96. AI-first annualized recurring revenue topped $500 million after more than tripling year over year, and net margins were 36%, near an all-time high.
Firefly accounted for about $300 million of that recurring revenue and was growing roughly 50% quarter over quarter through apps and credit packs. Paid users of the Acrobat AI Assistant grew by more than 150%, while Adobe's freemium-tier monthly active users rose to 850 million from 700 million last year.
From the sources (5 posts)
@fcholletThe market is treating Adobe like a legacy software company in terminal decline. Yet the actual data shows it's one of the biggest beneficiaries of the rise of GenAI. In fact, it's one of the top 5 most profitable & fastest-growing AI compa
@fcholletAdobe hit a record $6.62 billion in Q2 revenue (up 13% YoY) while non-GAAP EPS jumped 18% to $5.96. Its net margins are at 36%, close to an all-time high. They are absorbing the compute costs of generative AI while expanding their profitabi
@fcholletTheir AI-first ARR tripled year-over-year to surpass $500 million. Very few enterprise software companies are reporting this level of direct, paid AI adoption. The breakout driver is Firefly, now at $300M in ARR, growing approximately 50% q
@fcholletAdobe has also been successful at using AI to make its software easier to use for new users, resulting in a large increase of its freemium-tier MAUs (now 850M, up from 700M last year).
@fcholletTL;DR: Adobe is currently the most profitable it has ever been, and it is using AI to accelerating its adoption and earning growth (now 13%, up from 10-11% last year). For all the talk about "Adobe is over", every creative I know is still