Adobe Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Adobe Inc. has submitted its 2023 Form 10-K, detailing financial performance and operational data for the fiscal year ending December 1, 2023.</b>

AI Summary

ADOBE INC. (ADBE) filed a Annual Report (10-K) with the SEC on January 17, 2024. Adobe Inc. filed its 2023 Form 10-K on January 17, 2024, reporting for the fiscal year ending December 1, 2023. The filing covers the fiscal year from December 3, 2022, to December 1, 2023. Key financial data points and segment revenues are detailed within the report. The company's principal executive offices are located at 345 Park Avenue, San Jose, CA 95110-2704. Adobe Systems Inc. was the former company name, with a name change effective February 8, 1994.

Why It Matters

For investors and stakeholders tracking ADOBE INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Adobe's financial health, strategic initiatives, and risk factors for the fiscal year 2023, crucial for investors assessing the company's performance and future outlook. The detailed segment revenue breakdown, particularly for Subscription Revenue, Product, and Service/Other, offers insights into the primary drivers of Adobe's business and their respective growth trajectories.

Risk Assessment

Risk Level: medium — ADOBE INC. shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. While it contains detailed financial information, it does not inherently signal a significant shift in risk profile beyond what is typical for a company of Adobe's size and industry.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand Adobe's performance and potential challenges for the upcoming fiscal year.

Revenue Breakdown

Key Numbers

• 2023-12-01 — Fiscal Year End (Reporting period)
• 2024-01-17 — Filing Date (Date of submission)
• 0000796343-24-000006 — Accession Number (SEC filing identifier)
• 770019522 — IRS Number (Company tax identifier)

Key Players & Entities

• ADOBE INC. (company) — Filer name
• ADBE (company) — Ticker symbol
• 0000796343-24-000006 (other) — Accession Number
• 2023-12-01 (date) — Fiscal year end
• 2024-01-17 (date) — Filing date
• 345 PARK AVE (address) — Business address
• SAN JOSE (location) — Business address city
• CA (location) — Business address state

Forward-Looking Statements

• Adobe's subscription revenue will continue to grow, driven by strong demand for its Creative Cloud and Document Cloud products. (ADOBE INC.) — high confidence, target: 2024-12-01
• The company's focus on a subscription-based model will lead to increased investor confidence and potentially a higher stock valuation. (ADOBE INC.) — medium confidence, target: 2025-01-01

FAQ

Key Dates

• 2023-12-01: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-01-17: Filing Date — Date Adobe Inc. submitted the 10-K to the SEC.

Key Financial Figures

• $0.0001 — ange on Which Registered Common Stock, $0.0001 par value per share ADBE NASDAQ Secur

Filing Documents

• adbe-20231201.htm (10-K) — 2394KB
• adbe10kfy23unofficialpdf.pdf (10-K) — 575KB
• adbeex45fy23.htm (EX-4.5) — 16KB
• adbeex105fy23.htm (EX-10.5) — 51KB
• adbeex21fy23.htm (EX-21) — 41KB
• adbeex231fy23.htm (EX-23.1) — 3KB
• adbeex311fy23.htm (EX-31.1) — 11KB
• adbeex312fy23.htm (EX-31.2) — 12KB
• adbeex321fy23.htm (EX-32.1) — 7KB
• adbeex322fy23.htm (EX-32.2) — 8KB
• adbeex97fy23.htm (EX-97) — 32KB
• 0000796343-24-000006.txt (&nbsp;) — 13095KB
• adbe-20231201.xsd (EX-101.SCH) — 73KB
• adbe-20231201_cal.xml (EX-101.CAL) — 108KB
• adbe-20231201_def.xml (EX-101.DEF) — 420KB
• adbe-20231201_lab.xml (EX-101.LAB) — 1006KB
• adbe-20231201_pre.xml (EX-101.PRE) — 723KB
• adbe-20231201_htm.xml (XML) — 1974KB

Business

Item 1. Business 3

Risk Factors

Item 1A. Risk Factors 22

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 34 Item 1C. Cybersecu rity 34

Properties

Item 2. Properties 34

Legal Proceedings

Item 3. Legal Proceedings 34

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 34 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 35

[Reserved]

Item 6 [Reserved] 35

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 36

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 49

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 51

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 92

Controls and Procedures

Item 9A. Controls and Procedures 92

Other Information

Item 9B. Other Information 92

Disclosure Regarding Foreign Jurisdictions That Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 92 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 93

Executive Compensation

Item 11. Executive Compensation 93

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 93

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 93

Principal Account ant Fees and Services

Item 14. Principal Account ant Fees and Services 93 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 94

Form 10-K Summary

Item 16. Form 10-K Summary 96

Signatures

Signatures 97 Summary of Trademarks 99 2 Table of Contents

Forward-Looking Statements

Forward-Looking Statements In addition to historical information, this Annual Report on Form 10-K contains "forward-looking statements," within the meaning of applicable securities laws, including statements related to product development plans and new or enhanced offerings; our business, artificial intelligence and innovation momentum; our vision for the digital world, innovation and AI; our market opportunity and future growth, market and AI trends, strategic investments; revenue, operating margin, operating efficiencies and annualized recurring revenue; industry positioning; and customer acquisition and retention. In addition, when used in this report, the words "will," "expects," "could," "would," "may," "anticipates," "intends," "plans," "believes," "seeks," "targets," "estimates," "looks for," "looks to," "continues" and similar expressions, as well as statements regarding our focus for the future, are generally intended to identify forward-looking statements. Each of the forward-looking statements we make in this report are based on information available to us as of the date of this report and involves risks, uncertainties and assumptions based on information available to us as of the date of this report. Such risks and uncertainties, many of which relate to matters beyond our control, could cause actual results to differ materially and adversely from these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in the section titled "Risk Factors" in Part I, Item 1A of this report and elsewhere herein. The risks described herein and in Adobe's other filings with the U.S. Securities and Exchange Commission (the "SEC"), including our Quarterly Reports on Form 10-Q to be filed in fiscal 2024, should be carefully reviewed. Undue reliance should not be placed on the financial information set forth in this report, which reflects estimates based on information available at this time. A

BUSINESS

ITEM 1. BUSINESS OVERVIEW Adobe is a global technology company with a mission to change the world through personalized digital experiences. For over four decades, Adobe's innovations have transformed how individuals, teams, businesses, enterprises, institutions, and governments engage and interact across all types of media. Our products, services and solutions are used around the world to imagine, create, manage, deliver, measure, optimize and engage with content across surfaces and fuel digital experiences. We have a diverse user base that includes consumers, communicators, creative professionals, developers, students, small and medium businesses and enterprises. We are also empowering creators by putting the power of artificial intelligence ("AI") in their hands, and doing so in ways we believe are responsible. Our products and services help unleash creativity, accelerate document productivity and power businesses in a digital world. OFFERINGS We deliver a wide range of products, services and solutions to empower our customers and users to imagine and express ideas, create content and bring any digital experience to life. We focus our strategic investments in two areas of growth: Digital Media. We provide products, services and solutions that enable individuals, teams, businesses and enterprises to create, publish and promote their content anywhere, and accelerate their productivity by transforming how they view, share, engage with and collaborate on documents and content creation. Our Digital Media segment is centered around Adobe Creative Cloud and Adobe Document Cloud, which include Adobe Express, Adobe Firefly, Photoshop, Illustrator, Lightroom, Premiere Pro, Acrobat, Acrobat Sign and many more products, offering a variety of tools for creative professionals (like photographers, video editors and game developers), communicators and other consumers. This is the core of what we have delivered to customers and users for decades, and we have continually evol