- Adobe raised its full-year revenue and net new recurring revenue forecasts from its Digital Media business.
- The company has faced antitrust scrutiny over its attempted acquisition of Figma.
Shantanu Narayen, CEO of Adobe, attends a media event in Mumbai on May 3, 2017.
Abhijit Bhatlekar | Mint | Hindu times | Getty Images
Shares of Adobe rose 5% in extended 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 company did it:
- merits: $3.80 per share, adjusted, versus $3.68 per share as analysts expected, according to Refinitiv.
- Gain: $4.66 billion, versus $4.62 billion as analysts expected, according to Refinitiv.
Revenue was up 9% year over year in the quarter ended March 3, according to a statement. Net profit fell slightly to $1.25 billion.
The company’s Digital Media segment, which includes the Creative Cloud design software bundle, generated $3.4 billion in revenue, up 9% year-over-year and surpassing the $3.36 billion consensus among analysts polled by StreetAccount.
Adobe’s Digital Experience segment, which includes Marketo marketing software, contributed $1.18 billion in revenue, just above StreetAccount’s consensus of $1.17.
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 had expected $3.76 per share in adjusted earnings and $4.76 billion in revenue.
Adobe raised its earnings forecast for fiscal 2023 and now sees $15.30 to $15.60 in adjusted earnings per share, with $1.7 billion in new annualized net digital media revenue. In December, Adobe said it was seeking $15.15 to $15.45 in full-year adjusted earnings per share, with $1.65 billion in net new Digital Media ARR. Analysts polled by Refinitiv were looking for $15.31 in adjusted earnings per share.
During the quarter, Adobe said it has been in contact with regulators in the US, UK and EU regarding its upcoming $20 billion acquisition of design software startup Figma.
Excluding the after-hours move, Adobe shares are down 1% year-to-date, while the S&P 500 index is up 1%.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
This is the latest news. Check back later for updates.
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