Adobe (ADBE) Earnings Q1 2023

adobe Shares rose 5% in extended trading on Wednesday after the software maker announced financial first-quarter results that topped Wall Street’s estimates and lifted its full-year forecast.

Here’s how the company did:

• Earning: $3.80 per share, adjusted, versus the $3.68 per share expected by analysts, according to Refinitiv.
• Income: $4.66 billion, versus the $4.62 billion expected by analysts, according to Refinitiv.

According to a statement, revenue increased 9% year-on-year in the quarter ended March 3. Net income fell to $1.25 billion.

The company’s digital media segment, which includes the Creative Cloud design software bundle, generated revenue of $3.4 billion, up 9% from a year ago and topping the consensus of $3.36 billion among analysts polled by StreetAccount.

Adobe’s Digital Experience segment, which includes Marketo marketing software, contributed $1.18 billion in revenue, just above the $1.17 billion StreetAccount consensus.

For the second quarter, Adobe expects earnings per share of $3.75 to $3.80 on an adjusted basis and $4.75 billion to $4.78 billion in revenue. Analysts polled by Refinitiv were expecting $3.76 per share in adjusted earnings and $4.76 billion in revenue.

Adobe has raised its profit forecast for fiscal 2023, and now sees adjusted earnings per share of $15.30 to $15.60, with $1.7 billion in net new annual recurring revenue from digital media. Adobe in December said it was looking for $15.15 to $15.45 adjusted earnings per share for the full year, with $1.65 billion of net-new digital media ARR. Analysts polled by Refinitiv were looking for $15.31 in adjusted earnings per share.

A recent acquisition is bearing fruit at Adobe. The company is getting existing video clients to pay for Frame.io, which reviews and approves videos acquired in 2021 for $1.24 billion, Adobe finance chief Dan Dern said on a conference call with analysts. There is a tool for.

Adobe outpaced “single-product competitors” in categories such as analytics and content management for some deals this quarter, said Anil Chakraborty, president of the digital experience unit.

during the quarter, Microsoft Adobe said it is embedding Adobe’s Acrobat PDF engine into Edge, the default browser in Windows 10 and 11, and Adobe said it is negotiating a $20 billion deal with design software startup Figma with regulators in the US, UK and EU. pending acquisition. Adobe CEO Shantanu Narayen said on the conference call, “We have completed the discovery phase of the US DOJ’s second request and are ready to move on to the next steps, whether approval or challenge.”

Excluding the after-hours move, Adobe shares are down 1% so far this year, while the S&P 500 index is up 1%.

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