Photoshop maker Adobe forecast annual revenue of $23.30 billion – $23.55 billion for 2025 after it launched a slew of AI Innovations that promise more creativity and productivity for its customers.
Adobe reported revenue of $21.51 billion (up 11 percent) in fiscal year 2024.
San Jose, California-based Adobe is making investments in AI-driven image and video generation technologies in response to the competition from startups such as Stability AI and Midjourney, Reuters news report said.
Adobe forecast first-quarter revenue of $5.63 billion – $5.68 billion despite winning AI customers. Key customer wins for AI innovations include Air Canada, Allianz, American Express, Bank of America, BMW, Centene, CIBC, Cisco, Disney, Fanatics, GAP, GM, JPMorgan Chase, PayPal, Samsung, Tesco, and Wells Fargo.
Adobe’s fourth-quarter revenue rose 11 percent to $5.61 billion from a year ago.
AI-Centric Achievements
“Adobe drove FY24 records of $21.51 billion in revenue, $8.06 billion in cash flows from operations and $19.96 billion in RPO,” said Dan Durn, CFO of Adobe. “Adobe’s strategy, AI innovation and cross-cloud opportunity position us well for 2025 and beyond.”
Adobe’s focus on generative AI has driven transformative innovation, integrated deeply into its flagship platforms, and achieved remarkable customer adoption.
Digital Media Growth: Net new Annualized Recurring Revenue (ARR) surpassed $2 billion for the first time, with Q4 contributing $578 million.
Digital Experience Business: Revenue reached $5 billion, fueled by Adobe Experience Platform and native apps, establishing Adobe as a leader in marketing technology.
Document Cloud Performance: Delivered $843 million in Q4 revenue, growing 17 percent year-over-year, with ARR ending at $3.48 billion.
Firefly Generations surpassed 16 billion generations across creative tools, setting monthly records.
Adobe introduced Firefly Video Model alongside enhancements to Image, Vector, and Design models, offering faster outputs and broader capabilities.
Firefly Services are integrated into GenStudio, enabling scalable AI-driven content production for enterprises like Pepsi and Coca-Cola.
AI Assistant revolutionized document interaction with faster editing, smarter insights, and integrated image generation in Adobe Acrobat and Reader.
AI capabilities support contracts, scanned documents, and additional languages, enhancing enterprise workflows.
Acrobat Web users grew nearly 50 percent year-over-year, with AI Assistant conversations doubling in Q4.
Firefly models are embedded in Lightroom, Photoshop, Premiere Pro, Illustrator, and Adobe Express, boosting productivity and quality.
Creative Cloud added $405 million in net new ARR in Q4, driven by innovations like AI-powered quick actions in Lightroom Mobile.
Adobe Express, tailored for quick and accessible creativity, saw robust ecosystem growth with over 180 plugins and integrations with popular platforms like Google and Slack. The company plans to expand freemium offerings, introduce a higher-priced Firefly AI solution, and further accelerate AI integration into enterprise tools like GenStudio.
AI innovations enabled Adobe 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.
Firefly powered generations across tools surpassed 16 billion, with every month this past quarter setting a new record.
AI Assistant conversations doubled quarter over quarter, driving customer value. Monthly active users grew over 25 percent year over year, surpassing 650 million paid and free users.
Acrobat Web’s monthly active users up nearly 50 percent year over year.
Adoption of Adobe Express grew by approximately 4,000 businesses in the quarter and an 84 percent year-over-year increase in the number of students with access to Express Premium as part of this year’s back-to-school season.
The launch of the Firefly Video Model and its integration in Premiere Pro in limited public beta garnered massive customer interest. This feature drove a 70 percent increase in the number of Premiere Pro beta users since it was introduced at MAX.
Enterprises such as Pepsi and Tapestry use Firefly Services to scale content production given the robust APIs and ease of creating custom models.
Key enterprise customer wins include Alphabet, American Express, Coca-Cola, Johnson & Johnson, LVMH, Nestle, Procter & Gamble, T-Mobile, and the U.S. Department of Defense.
Baburajan Kizhakedath
