Shantanu Narayen, CEO of Adobe
Markus Neuling | CNBC
Adobe Shares rose 6% in extended trading on Thursday after the design software maker announced fourth-quarter results and guidance that beat analysts’ expectations.
Here’s how the company did it:
- Merits: $3.60 per share, adjusted vs. $3.50 per share as expected by analysts, according to Refinitiv.
- Revenue: $4.53 trillion compared to $4.53 billion expected by analysts, according to Refinitiv.
Total revenue increased 10% year over year for the quarter ended December 31. 2, according to a statement. In the previous quarter, revenue rose 13%. Net income was $1.18 billion, down slightly from $1.23 billion in the same quarter last year.
Referring to the guidance, Adobe called for adjusted earnings per share of $3.65 to $3.70 on revenue of $4.60 to $4.64 billion for the fiscal first quarter. Analysts polled by Refinitiv had expected adjusted earnings per share of $3.64 and revenue of $4.64 billion. Figures do not include Figma effects. The company maintained its guidance for the full 2023 fiscal year.
Adobe’s digital media business, which includes subscriptions to Creative Cloud design software, contributed $3.30 billion in revenue, falling short of StreetAccount’s $3.31 billion consensus. Creative revenue increased 8% for the quarter. The digital experience unit, which includes Adobe’s marketing software, had revenue of $1.15 billion, just above the StreetAccount consensus of $1.14 billion.
During the quarter, Adobe announced it would buy design software startup Figma for about $20 billion, the 40-year-old public company’s largest transaction to date.
Factoring out the effect of the after-hours move, Adobe shares are down 42% this year, while the S&P 500 index is down 18% over the same period.
Executives will discuss the results with analysts in a conference call starting at 5:00 p.m. ET.
This is breaking news. Please check again for updates.
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