Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

Analysis of Reportable Segments

Microsoft Excel

Segment Profit Margin

Adobe Inc., profit margin by reportable segment

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Digital Media 95.32% 95.63% 96.28% 96.19% 96.24% 96.06%
Digital Experience 67.24% 66.03% 65.84% 63.97% 62.22% 67.25%
Publishing and Advertising 71.33% 70.18% 71.11% 52.16% 51.12% 57.75%

Based on: 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30).

Segment profitability ratio Reportable segment The company
Segment profit margin Digital Media Digital Media segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Digital Experience Digital Experience segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Publishing and Advertising Publishing and Advertising segment profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Segment Profit Margin: Digital Media

Adobe Inc.; Digital Media; segment profit margin calculation

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Selected Financial Data (US$ in millions)
Gross profit 13,551 12,281 11,091 8,881 7,417 6,076
Revenue 14,216 12,842 11,520 9,233 7,707 6,325
Segment Profitability Ratio
Segment profit margin1 95.32% 95.63% 96.28% 96.19% 96.24% 96.06%

Based on: 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30).

1 2023 Calculation
Segment profit margin = 100 × Gross profit ÷ Revenue
= 100 × 13,551 ÷ 14,216 = 95.32%

Segment profitability ratio Reportable segment The company
Segment profit margin Digital Media Digital Media segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Segment Profit Margin: Digital Experience

Adobe Inc.; Digital Experience; segment profit margin calculation

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Selected Financial Data (US$ in millions)
Gross profit 3,290 2,920 2,546 1,999 1,739 1,394
Revenue 4,893 4,422 3,867 3,125 2,795 2,073
Segment Profitability Ratio
Segment profit margin1 67.24% 66.03% 65.84% 63.97% 62.22% 67.25%

Based on: 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30).

1 2023 Calculation
Segment profit margin = 100 × Gross profit ÷ Revenue
= 100 × 3,290 ÷ 4,893 = 67.24%

Segment profitability ratio Reportable segment The company
Segment profit margin Digital Experience Digital Experience segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Segment Profit Margin: Publishing and Advertising

Adobe Inc.; Publishing and Advertising; segment profit margin calculation

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Selected Financial Data (US$ in millions)
Gross profit 214 240 283 266 342 365
Revenue 300 342 398 510 669 632
Segment Profitability Ratio
Segment profit margin1 71.33% 70.18% 71.11% 52.16% 51.12% 57.75%

Based on: 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30).

1 2023 Calculation
Segment profit margin = 100 × Gross profit ÷ Revenue
= 100 × 214 ÷ 300 = 71.33%

Segment profitability ratio Reportable segment The company
Segment profit margin Publishing and Advertising Publishing and Advertising segment profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Revenue

Adobe Inc., revenue by reportable segment

US$ in millions

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Digital Media 14,216 12,842 11,520 9,233 7,707 6,325
Digital Experience 4,893 4,422 3,867 3,125 2,795 2,073
Publishing and Advertising 300 342 398 510 669 632
Total 19,409 17,606 15,785 12,868 11,171 9,030

Based on: 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30).


Gross profit

Adobe Inc., gross profit by reportable segment

US$ in millions

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Digital Media 13,551 12,281 11,091 8,881 7,417 6,076
Digital Experience 3,290 2,920 2,546 1,999 1,739 1,394
Publishing and Advertising 214 240 283 266 342 365
Total 17,055 15,441 13,920 11,146 9,498 7,835

Based on: 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30).