By
Tokoni Uti
December 18th, 2023
Adobe reported revenue of $4.66 billion, up 9 percent YoY, against an estimated $4.62 billion by Wall Street.
Adobe Inc (NASDAQ: ADBE), an American multinational computer software company, reported its financial results for the first quarter of fiscal 2023 which ended on March 3. During the first quarter, Adobe reported earnings results that beat analysts’ estimates and lifted its full-year forecast. As a result, ADBE shares rose over 5 percent during the after-hours trading session to trade around $350.80. The $152.6 billion valued company reported earnings per share of $3.80 during the first quarter versus $3.68 per share as expected by analysts, according to a study by Refinitiv.
The tech company posted revenues of about $4.66 billion during the first quarter against an estimated $4.62 billion expected by analysts surveyed by Refinitiv. While the revenue rose approximately 9 percent YoY, the company indicated its cash flows from operations came in at $1.69 billion.
“Adobe drove record Q1 revenue, and we are raising our annual targets based on the tremendous market opportunity and continued confidence in our execution,” said Shantanu Narayen, chairman and CEO of Adobe. “Creative Cloud, Document Cloud and Experience Cloud are mission-critical in fueling the global digital economy.”
Notably, Adobe’s Digital Media segment, which includes the Creative Cloud design software bundle, posted a revenue of about $3.4 billion, up 9 percent YoY and above the $3.36 billion consensus among analysts polled by StreetAccount.
The company’s Digital Experience segment, which features Marketo marketing software, recorded a revenue of about $1.18 billion during the first quarter, versus the $1.17 billion estimate by analysts polled by StreetAccount.
“Our strong engine of innovation combined with world-class operational rigor drove profitable growth in Q1, setting us up to deliver another strong fiscal year,” said Dan Durn, executive vice president and CFO of Adobe.
Adobe and the Market Outlook for 2023
During the first quarter, the San Jose, California, headquartered tech company announced that it repurchased 5 million shares to bolster its stock market. Furthermore, Adobe shares dropped approximately 25 percent in the past year but have gained about 1.5 percent YTD. During the second quarter of the fiscal year 2023, Adobe is forecast to report revenue of between $4.75 billion and $4.78 billion.
Notably, the company’s digital media section is expected to post revenues of between $3.45 billion and $3.47 billion. Adobe’s digital experience segment is expected to report revenue of between $1.21 billion and $1.23 billion during the second quarter.
The company’s GAAP earnings per share for the second quarter are expected to be between $2.65 and $2.70.