Have you evaluated the performance of Adobe Systems' (ADBE) international operations for the quarter ending May 2024? Given the extensive global presence of this software maker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great im ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

SaaS stocks to buy remain timeless picks for savvy investors. As the business world pivots from on-premise solutions to cloud-based services, the allure of SaaS stocks is undeniable. However, while the SaaS sector continues to grow at a heartening pace, it’s also fiercely competitive. Many have tried and failed to solidify their positioning in the software space, making it imperative to back the right companies to capitalize on the burgeoning trend. That said, the article discussed three of the top SaaS sto ...

David Tran Introduction & Investment Thesis Adobe (NASDAQ:ADBE) drives creativity, productivity, and digital experiences through its Creative Cloud, Document Cloud, and Experience Cloud offerings. The company has underperformed the indices YTD, although jumping 14.5% after its latest Q2 FY24 earnings, where it grew its revenue and earnings by 11% and 11.9% YoY, respectively, beating estimates. While investor sentiment was subdued before the earnings call, its Q2 report showcased strength across its solu ...

David Tran Breaking Down Adobe's Q2 FY2024 Report Considering Adobe's (NASDAQ:ADBE) (NEOE:ADBE:CA) post-ER pop of ~14.5% to ~$525 per share, it is natural to assume that the software giant just delivered a blowout quarter. Now, while Adobe beat consensus street estimates and raised guidance for FY2024 [with Narayen & Co. highlighting their GenAI opportunity], Adobe's revenue beat was wafer-thin, and updated guidance came more or less in line with consensus estimates heading into the Q2 print. Seeking ...

Once threatened by the advancements in artificial intelligence (AI), shares of Adobe Inc. NASDAQ: ADBE  are now having their best day in over four years, all because of AI. The stock is now rallying by over 15% on the company’s most recent quarterly earnings results, primarily driven by some trends that have driven the technology sector higher this year.Adobe TodayADBEAdobe$525.31 +66.57 (+14.51%) 52-Week Range$433.97▼$638.25P/E Ratio47.20Price Target$605.17Add to WatchlistAnalysts were surprised that one o ...

Investment Thesis - Adobe's stock increased over 15% following its Q2 FY2024 earnings, attributed to better-than-expected results despite a depressed market sentiment [2] - The company's revenue outlook is below market consensus and does not indicate a strong growth rebound, with a projected top-line growth of 10.5% YoY in FY2024, which does not justify its premium valuation as an AI-driven growth stock [2][20] - The stock has underperformed the S&P 500 index by nearly 15% since the previous analysis, leading to a downgrade from buy to hold due to unsatisfactory revenue guidance [2] 2Q FY2024 Takeaway - Adobe exceeded both revenue and non-GAAP EPS expectations in Q2 FY2024 but provided conservative revenue guidance, with Q3 FY2024 revenue guidance below market consensus [5] - The company's top-line growth has significantly decelerated since FY2021, remaining flat YoY despite AI initiatives, with a guided 9.5% YoY growth for Q3 FY2024, down from 9.8% YoY in Q3 FY2023 [5][7] - The FY2024 revenue outlook of 10.5% YoY growth aligns closely with the 10.2% growth in FY2023, indicating a lack of growth inflection [5] Revenue Segments - The digital media revenue segment accounted for 74% of total revenue in the last quarter, with a forecasted 10% YoY growth, lower than the 11% YoY growth in Q3 FY2023 [7] - The guided 11.3% YoY growth for FY2024 in this segment is below the 11.5% YoY growth achieved in FY2022, suggesting a lack of upward growth momentum [7] Free Cash Flow (FCF) Generation - Adobe has experienced negative YoY growth in FCF over the past three quarters, with declining FCF margins over the last three years, indicating weak growth in billings [9][10] AI Initiatives and Firefly - Firefly, a key component of Adobe's GenAI portfolio, has generated over 9 billion images in 15 months, showing a nearly 40% growth since Q1 FY2024 [13] - The demand for AI-powered tools is increasing, but the timing of this demand translating into top-line growth remains uncertain [13][16] Remaining Performance Obligations (RPO) - Adobe's total Remaining Performance Obligations (RPO) have accelerated over the past five quarters, indicating potential future revenue, but a robust backlog growth has not yet translated into sequential revenue growth [15][16] Valuation Metrics - Adobe's stock is trading at a premium, with an EV/Sales FY2024E of 10.9x and an EV/Revenue growth ratio of 1.04x, suggesting that the near-term growth outlook does not justify the current valuation [20] - The stock's valuation multiples have decreased from recent highs but remain elevated compared to historical levels [18] Conclusion - Adobe has made progress with its AI initiatives, exceeding revenue and earnings expectations, but revenue growth has not yet picked up, raising concerns about achieving a robust rebound [21] - The FY2024 guidance suggests a flat growth trajectory compared to previous years, and the stock is trading at a premium, reflecting optimistic long-term growth expectations [21]

The rise of generative artificial intelligence (AI) is paving the way for a smarter future. Not only are workforces getting more efficient from an operational standpoint. But also they stand to bolster their growth rates over the medium- and, more importantly, the extremely long term. It’s the long-lasting benefits that are most exciting when it comes to the top AI plays. Investors are watching those that are taking off right now, as well as those that have been long forgotten.In this piece, we’ll tune into ...

The Adobe logos are being displayed on a smartphone screen and on a computer screen in Athens, ... [+] Greece, on May 22, 2024. (Photo by Nikolas Kokovlis/NurPhoto via Getty Images)NurPhoto via Getty Images Since peaking at $663 in November 2021, Adobe’s stock market value has fallen 21%. As an investor in the San Jose, Calif.-based software company, this lost value is not pleasant.Ups and downs are likely for most stocks. If a company beats investor expectations and raises guidance, the stock rises. Otherw ...

JHVEPhoto Adobe Inc. (NASDAQ:ADBE) investors received a much-needed respite last week as the creative software company reported its earnings. Adobe's second fiscal-quarter earnings release brushed aside the market's pessimism, as Adobe posted a beat-and-raise quarter. I provided a bullish ADBE update in March 2024, highlighting why pessimism in ADBE could have peaked. However, ADBE buyers were nowhere to be found as the downward volatility continued in earnest. Salesforce's (CRM) disappointing guidance ...