Adobe Inc. (NASDAQ:ADBE) reported Q4 results, with non-GAAP EPS coming in at $3.20, slightly higher than the consensus estimate. Quarterly revenue was $4.11 billion, above the consensus estimate of $4.08 billion.

The disappointment in the results was Digital Media ARR being very unusually below the guidance when adjusting for its recent acquisition of Frame.io. The miss was surprising given the company's fundamental strength, predictable, data-driven operating model, and longstanding track record of overachievement on this metric.

Somewhat offsetting this is 2022 DMARR guidance that was generally in line with estimates and historical trends, signs of strength and consistency within Digital Experience, and the management’s highlight that its TAM has expanded to $205 billion by 2024 from last year's $147 billion by 2023.