Earnings: Adobe Says Users Created 16 Billion Pieces of Content with its Firefly Models

Adobe said its customers have generated 16 billion pieces of content using Firefly-integrated Adobe Tools as of the fourth quarter of the financial year 2024 (Q4FY24) ending on November 29, 2024. Speaking about Adobe’s recently introduced video editing AI model, the President of Adobe Digital Media David Wadhwani said that the model’s integration into Premier Pro (a part of Creative Cloud) is leading to increased customer interest. He added that since its launch, the number of Premier Pro Beta users has increased by 70%. The company intends to make the feature more broadly available to its user base starting 2025.

Similarly, Wadhwani also reported an increase Adobe Document Cloud’s user base. He mentioned that the segment saw a 25% year-on-year growth in monthly active users both paid and unpaid. This took the total monthly active users of the service to 250 million. Acrobat’s web— which allows users to edit PDFs on their browser— also saw an increase in usage base with its monthly active users rising by 50% on a year-on-year basis. 

“We will soon introduce a new higher-priced Firefly offering that includes our video models, as a comprehensive AI solution for creative professionals. This will allow us to monetize new users, provide additional value to existing customers and increase ARPU [average revenue per user],” Wadhwani mentioned. 

Key operational metrics:

Adobe Express user base expansion: In Q4, 4000 businesses adopted Adobe Express. This is a free app that allows users to create social media posts. Users can access more features if they sign up for the service’s premium version. Adobe Express’ Premium service saw an increase in its student customer base by 84% on a year-on-year basis.

Improvement in Adobe Firely: In Q4, Adobe improved the performance of its Firefly Image, Vector and Design models. This led to four times faster image generation and new capability integrations into Photoshop, Illustrator, Premiere Pro, and Adobe Express.   

Key financial metrics:

Total revenue: The company’s total revenue for the quarter stood at $5.61 billion. This indicates an 11% year-on-year growth in the company’s total revenue.

Cash flow from operations: This is the money that a business spends on and makes from its business operations. This figure stood at $2.92 billion.

Digital Media revenue: This segment had a revenue of $4.15 billion, representing a 12% year-on-year growth. Within the segment, document cloud revenue grew by 17% year-on-year reaching $843 million. Creative Cloud revenue stood at  $3.30 billion, growing by 10% compared to the same quarter last year.

Annualised recurring revenue for digital media: Annualised recurring revenue (ARR) is the monetary value of a subscription-based company’s subscriber base. Net new ARR shows the change in recurring revenue from both new customers and existing customers. In Q4, the net new ARR for the digital media segment was $578 million. 

The total ARR for Digital Media by the end of Q4 stood at $17.33 billion of which Document Cloud made up  $3.48 billion and Creative Cloud made up $13.85 billion. Total ARR for the segment grew by 13% on a year-on-year basis. 

Digital Experience revenue: Digital experience consists of Adobe’s enterprise products which allow companies to create a personalized experience for their viewers. This segment’s revenue grew by 10% year on year reaching $1.40 billion. Digital experience subscription revenue stood at $1.27 billion, representing 13 percent year-over-year growth.

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