Adobe CEO Shantanu Narayen speaks during an interview with CNBC on the ground of the Recent York Stock Exchange on Feb. 20, 2024.
Brendan Mcdermid | Reuters
Adobe shares tumbled as much as 11% in prolonged trading Thursday after the design software maker issued strong fiscal first-quarter results but got here up barely short on quarterly revenue guidance.
Here’s how the corporate did, compared with estimates from analysts polled by LSEG, formerly often known as Refinitiv:
- Earnings per share: $4.48 adjusted vs. $4.38 expected
- Revenue: $5.18 billion vs. $5.14 billion expected
Adobe’s revenue grew 11% yr over yr within the quarter, which ended on March 1, in response to a statement. Net income decreased to $620 million, or $1.36 per share, from $1.25 billion, or $2.71 per share, in the identical quarter a yr ago.
In the course of the quarter, Adobe abandoned its $20 billion acquisition of design software startup Figma after U.K. regulators found competitive concerns. The corporate paid Figma a $1 billion termination fee. Adobe announced an early version of a synthetic intelligence assistant for its Reader and Acrobat apps.
Adobe sees fiscal second-quarter earnings of $4.35 to $4.40 per share on an adjusted basis, with $5.25 billion to $5.30 billion in revenue. The center of the range implies 9% growth. Analysts polled by LSEG had been in search of $4.38 per share and $5.31 billion in revenue.
Product enhancements within the Adobe Express app, the Firefly Services AI offering and the brand new Acrobat assistant should result in acceleration in digital media annualized recurring revenue within the second half of the yr, David Wadhwani, president of Adobe’s digital media business, said on the earnings call.
The corporate said it was setting aside $25 billion for share buybacks.
Leaving out the after-hours movement, Adobe shares have fallen 4% thus far this yr, while the S&P 500 index has gained 8% over the identical time period.
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