Far from the estimates initially raised by Wall Street about Adobe’s quarterly results, the software company has seen how its shares gained 6% in hours. These flattering results outperform the market in its second financial quarter and have made increase your income and profit expectations for the remainder of the year.
The results obtained only corroborate the forecasts that the American company was considering in its sales, and it is that it has made great efforts to try to boost its demand thanks to the new integrations of generative AI. In this sense, the company based in San José (California) recently introduced features in Acrobat, Express, Photoshop and Premiere Pro.
In addition to this feedback, earlier this month the company announced that it would offer Firefly, which is its AI tool for generating images, to its most potential customers, in exchange for copyright compensation.
A favorable economic situation for Adobe
Experts have considered generative AI as a mainstay in the short and long term for creative and experience businesses, a fact that could grow the company’s revenues in the coming year 2024. The reality is that Adobe shares are up more than 50% compared to the start of the year.
In this sense, and assessing the current year, Adobe has forecast that its income for the current quarter reach the figure between 4,830 million and 4,870 million dollars. In addition to and as a consequence of this, revenues for fiscal year 2023 have also risen, now standing between 19.250 million and 19.350 million dollars.
The CEO of the company, Shantanu Narayen said in a statement that “Adobe achieved record revenue in the second quarter, demonstrating strong demand in Creative Cloud, Document Cloud and Experience Cloud. Adobe’s groundbreaking innovation positions us to lead the new era of generative AI given our rich data sets, core models, and ubiquitous product interfaces.”
The truth is that this second quarter has produced very favorable results for Adobe, and that is that the company software increased its profits compared to last year, going from 1,180 million dollars to 1,300 million dollars current. To this must be added the increase in its shares, which went from $2.49 to $2.82.
The company’s earnings report also includes document cloud revenue, which increased 11%, creative media revenue 9% and digital media 10%.
Dan Durn, the company’s executive vice president and chief financial officer, stated, “Adobe delivered outstanding net new ARR and profitability in the second quarter, positioning us to raise our annual targets.” Similarly Durn added that “our unique ability to generate revenue and profit growth while investing in breakthrough innovation prepares us to capitalize on our enormous market opportunity of more than $200 billion.”
The incorporation of Figma to Adobe
In addition to the impact caused by the generative AI, everything also seems to revolve around the purchase of Figma, of which the company has already clarified that It must become effective before the end of 2023. Said acquisition seems to be around 20,000 million dollars, which would give Adobe ownership of a company very popular among technology companies, such as Zoom Video Communications, Airbnb or Coinbase.
