Shantanu Narayen, CEO, Adobe
Mark Neuling | CNBC
Adobe shares rose 5% in extended trading on Thursday after the design software maker announced fiscal fourth-quarter earnings and guidance that exceeded analysts’ expectations.
Here’s how the company did:
- Earnings: $3.60 per share, adjusted, vs. $3.50 per share as expected by analysts, according to Refinitiv.
- Revenue: $4.53 billion, vs. $4.53 billion as expected by analysts, according to Refinitiv.
Total revenue grew 10% year over year in the quarter, which ended on Dec. 2, according to a statement. In the previous quarter revenue rose by 13%. Net income, at $1.18 billion, was down slightly from $1.23 billion in the year-ago quarter.
With respect to guidance, Adobe called for $3.65 to $3.70 in adjusted earnings per share on $4.60 billion to $4.64 billion in revenue in the fiscal first quarter. Analysts polled by Refinitiv had expected $3.64 in adjusted earnings per share and $4.64 billion in revenue. The numbers don’t include impact from Figma. The company maintained its guidance for the full 2023 fiscal year.
Adobe’s Digital Media business, which includes Creative Cloud design software subscriptions, contributed $3.30 billion in revenue, not quite meeting the StreetAccount consensus of $3.31 billion. Creative revenue grew 8% in the quarter. The Digital Experience unit, which includes Adobe’s marketing software, delivered $1.15 billion in revenue, just over the $1.14 billion StreetAccount consensus.
In the quarter Adobe said it would buy design software startup Figma for about $20 billion in the 40-year-old public company’s largest transaction to date.
When removing the effect of the after-hours move, Adobe shares have slid 42% this year, while the S&P 500 index has declined 18% over the same period.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
This is breaking news. Please check back for updates.
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