Adobe (ADBE.US) reported second-quarter earnings for 2024 that exceeded Wall Street expectations, driving its shares up by 17% in after-hours trading. The software giant posted an adjusted earnings per share (EPS) of $4.48, surpassing the consensus estimate of $4.39, and revenue of $5.31 billion, beating the expected $5.29 billion. For the third quarter, Adobe forecasts an EPS range of $4.50 to $4.55, higher than the consensus estimate of $4.48, although its revenue projection of $5.33 billion to $5.38 billion fell short of the anticipated $5.4 billion.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appQ3 2024 FY Targets:
- Total revenue: $5.33 billion to $5.38 billion
- Digital Media net new ARR: ~$460 million
- Digital Media segment revenue: $3.95 billion to $3.98 billion
- Digital Experience segment revenue: $1.325 billion to $1.345 billion
- Digital Experience subscription revenue: $1.20 billion to $1.22 billion
- Earnings per share:
- GAAP: $3.45 to $3.50
- Non-GAAP: $4.50 to $4.55
2024 FY Targets:
- Total revenue: $21.40 billion to $21.50 billion
- Digital Media net new ARR: ~$1.95 billion
- Digital Media segment revenue: $15.80 billion to $15.85 billion
- Digital Experience segment revenue: $5.325 billion to $5.375 billion
- Digital Experience subscription revenue: $4.775 billion to $4.825 billion
- Earnings per share:
- GAAP: $11.80 to $12.00
- Non-GAAP: $18.00 to $18.20
Adobe raised its full-year 2024 guidance, now expecting an EPS of $18 to $18.20, compared to the previous estimate of $17.60 to $18 and the consensus of $18.02. The company projects full-year revenue between $21.4 billion and $21.5 billion, slightly below the expected $21.46 billion.
-
Innovative AI Integration - Adobe's management emphasized the company's distinguished approach to AI, highlighting the integration of AI functionalities across all its offerings, including Creative Cloud, Document Cloud, and Experience Cloud. AI will enhance human creativity and productivity, with Firefly AI models generating significant user engagement.
-
Customer and Market Growth - Adobe's CEO, Shantanu Narayen, attributed the company's success to its innovative product roadmap and growing customer base.
-
Experience Cloud and AEP AI Assistant - Adobe Experience Platform (AEP) is on track to become a billion-dollar business, with enhancements like the AEP AI Assistant boosting marketing productivity. Experience Cloud revenue reached $1.33 billion, with a 13% year-over-year growth in subscription revenue.
Adobe (ADBE.US) shares gain 15.60% in pre-market to $530 per share.
Source: xStation 5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
