Shantanu Narayen, CEO of Adobe, attends a media event in Mumbai, May 3, 2017.
Abhijit Bhatlekar | mint | Hindustan Times | Getty Images
Adobe shares rose 5% in prolonged trading Wednesday after the software maker announced fiscal first-quarter results that beat Wall Street estimates and raised its full-year forecast.
Here’s how the corporate fared:
- Profits: $3.80 per share, adjusted, versus $3.68 per share, in step with analyst expectations, in line with Refinitiv.
- Income: $4.66 billion, in line with Refinitiv, in comparison with $4.62 billion as analysts expected.
Revenue was up 9% year-on-year within the quarter ended March 3, in line with statement. Net income fell barely to $1.25 billion.
The corporate’s Digital Media segment, which incorporates the Creative Cloud design software suite, generated $3.4 billion in revenue, up 9% year-on-year and above the $3.36 billion consensus amongst analysts surveyed by StreetAccount.
The Adobe Digital Experience segment, which incorporates Marketo marketing software, brought in $1.18 billion in revenue, barely above StreetAccount’s $1.17 billion consensus.
For the second quarter, Adobe expects adjusted earnings per share of $3.75 to $3.80 and revenue of $4.75 to $4.78 billion. Analysts polled by Refinitiv had expected $3.76 per share in adjusted earnings and $4.76 billion in revenue.
Adobe raised its profit forecast for fiscal 12 months 2023 and now sees adjusted earnings per share of $15.30 to $15.60, on $1.7 billion of recent annual net revenue from digital media. In December, Adobe said it was looking for an adjusted earnings per share of $15.15 to $15.45 for the total 12 months, with $1.65 billion net of recent ARR Digital Media. Analysts polled by Refinitiv had expected $15.31 in adjusted earnings per share.
One recent acquisition bears fruit at Adobe. The corporate is urging existing video customers to pay for Frame.io, a video review and approval tool it acquired for $1.24 billion in 2021, Adobe’s chief financial officer Dan Durn said during a conference call with analysts.
Within the quarter, Adobe outperformed “single product competitors” in categories similar to analytics and content management for some deals, said Anil Chakravarthy, president of Digital Experience.
Inside 1 / 4 Microsoft he said yes Adobe Acrobat PDF engine embedding in Edge, the default browser on Windows 10 and 11, and Adobe said it’s working with US, UK and EU regulators on its expected $20 billion acquisition of Figma. “We have now accomplished the invention phase of the US Department of Justice’s second application and we’re prepared for the subsequent steps, whether it’s an approval or a challenge,” Adobe CEO Shantanu Narayen said in a conference call.
Excluding after-hours traffic, Adobe shares are down 1% this 12 months, while the S&P 500 index is up 1%.
TO WATCH: Adobe is an organization we have admired for a really very long time, says Bill Nygren of Oakmark