Key TakeawaysAdobe shares fell sharply in premarket trading on Thursday after the multimedia software provider issued a weaker-than-expected revenue outlook.The stock has traded higher within a rising wedge, mimicking a similar pattern that formed on the chart between July and September.Investors should watch crucial support levels on Adobe's chart around $500, $475, and $440, while also monitoring important overhead areas near $565 and $635. Adobe (ADBE) shares fell sharply in premarket trading on Thursday ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

Financial Data and Key Metrics - Q4 revenue reached $5 61 billion, representing 11% YoY growth [7] - FY2024 revenue was $21 51 billion, up 11% YoY, with GAAP EPS at $12 36 and non-GAAP EPS at $18 42, growing 5% and 15% YoY respectively [8] - Digital Media net new ARR reached $578 million in Q4, with a record $2 billion for FY2024 [7][9] - Digital Experience subscription revenue grew 12% YoY to $1 27 billion in Q4 [7] - RPO (Remaining Performance Obligations) stood at $19 96 billion at year-end, with cash and short-term investments totaling $7 89 billion [9] Business Line Performance Digital Media - Digital Media revenue in Q4 was $4 15 billion, up 12% YoY, driven by innovation in creative and document businesses [14] - Document Cloud revenue grew 17% YoY to $843 million in Q4, with net new ARR of $173 million and ending ARR of $3 48 billion, up 23% YoY [18] - Creative Cloud revenue was $3 3 billion in Q4, up 11% YoY, with net new ARR of $405 million [23] - Adobe Express adoption grew, with 4,000 businesses adopting it in Q4 and an 84% YoY increase in student access [23] Digital Experience - Digital Experience revenue in Q4 was $1 4 billion, with subscription revenue growing 12% YoY to $1 27 billion [30] - Adobe Experience Platform and native apps surpassed $1 billion in ending book of business, with 48 Fortune 100 companies leveraging these solutions [31] - Gen Studio for performance marketing saw strong demand, integrating Creative Cloud, Express, and Experience Cloud [34] Market Performance - Adobe's digital media business saw record traffic to adobe com and engagement on social and mobile platforms [14] - Document Cloud monthly active users grew over 25% YoY, surpassing 650 million paid and free users [19] - Adobe Express ecosystem expanded with over 180 plugins and integrations with apps like ChatGPT, Google, and Slack [24] Strategy and Industry Competition - Adobe focused on AI innovation, with Firefly models generating over 16 billion cumulative generations [11][22] - The company introduced tiered subscription offerings and add-ons, including a new higher-priced Firefly offering with video models [28] - Adobe expanded partnerships with Amazon, Google, Meta, and others to enhance its market position [35][36] Management Commentary on Operating Environment and Future Outlook - Management highlighted the transformative impact of AI innovations, particularly in generative AI models like Firefly [10][22] - Adobe expects FY2025 revenue to be between $23 3 billion and $23 55 billion, with digital media ARR growth of 11% YoY [54] - The company anticipates foreign exchange headwinds of approximately $200 million in FY2025 [54] Other Important Information - Adobe repurchased 17 5 million shares in FY2024 and entered into a $2 5 billion share repurchase agreement in Q4 [52] - The company launched a global initiative to help 30 million learners develop AI literacy and digital marketing skills using Adobe Express [58] Q&A Summary Question: Adoption curve of Firefly and Gen Studio integration [65] - David Wadhwani emphasized the strong adoption of Firefly, with 16 billion generations, and highlighted the integration of Firefly into Creative Cloud, Express, and Digital Experience products [67][68] - Dan Durn noted that the FY2025 guide reflects the momentum of innovations like Express, AI Assistant, and Firefly services [74] Question: Growth drivers from Firefly and Gen Studio [77] - David Wadhwani discussed the growth algorithm for digital media, focusing on new users, new products, and value-based pricing [80][82] - Dan Durn highlighted the shift in guidance methodology to focus on ending ARR growth, emphasizing new subscribers and cross-selling opportunities [88][89] Question: Pricing sensitivity and value delivery [95] - David Wadhwani explained the balance between proliferation and monetization, with price sensitivity at the lower end of the market and opportunities for tiering in the core creative business [97][99] Question: Durability of Document Cloud growth [119] - David Wadhwani attributed Document Cloud's growth to the increasing monthly active users and the value added by AI Assistant, which enhances productivity and user engagement [122][126] Question: Impact of Black Friday and Cyber Monday on Creative Cloud ARR [102] - Dan Durn noted that Black Friday and Cyber Monday performance was in line with expectations, with online shopping up 8 4% YoY [103] Question: Stock performance and growth concerns [107] - Shantanu Narayen addressed concerns about growth, highlighting the strong performance in FY2024 and the potential for Gen Studio to unlock further growth in the enterprise segment [110][113] Question: Consumption-based growth in FY2025 [128] - Shantanu Narayen indicated that consumption would contribute to ARR growth through video offerings, Gen Studio, and premium pricing tiers [130][132] Question: Firefly services integration and conversion rates [135] - David Wadhwani discussed the positive signals from Express and Lightroom adoption, with generative AI driving faster onboarding and higher retention rates [141][144] Question: RPO growth and tiered offerings [147] - Dan Durn expressed confidence in the business's ability to drive growth through large transformational deals and premium tiers [151] - David Wadhwani explained that tiering would focus on feature access and usage limits, with higher tiers offering more features and usage [152][153]

Adobe is expanding its artificial intelligence (AI) strategy with new premium video generation capabilities as the company builds on the success of its Firefly AI platform, which the company said has generated more than 16 billion pieces of content since launch.During its fourth-quarter earnings call on Wednesday (Dec. 11), Adobe revealed plans to introduce AI video generation as a premium offering early next year. Currently in limited public beta, the video generation feature has already driven a 70% incre ...

For the quarter ended November 2024, Adobe Systems (ADBE) reported revenue of $5.61 billion, up 11.1% over the same period last year. EPS came in at $4.81, compared to $4.27 in the year-ago quarter.The reported revenue represents a surprise of +1.24% over the Zacks Consensus Estimate of $5.54 billion. With the consensus EPS estimate being $4.66, the EPS surprise was +3.22%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...

Earnings Performance - Adobe reported quarterly earnings of $4.81 per share, beating the Zacks Consensus Estimate of $4.66 per share, representing a 3.22% earnings surprise [1] - This compares to earnings of $4.27 per share a year ago [1] - Over the last four quarters, the company has surpassed consensus EPS estimates four times [2] Revenue Performance - Adobe posted revenues of $5.61 billion for the quarter ended November 2024, surpassing the Zacks Consensus Estimate by 1.24% [2] - This compares to year-ago revenues of $5.05 billion [2] - The company has topped consensus revenue estimates four times over the last four quarters [2] Stock Performance - Adobe shares have lost about 8.3% since the beginning of the year versus the S&P 500's gain of 26.5% [4] - The stock is currently rated Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7] Future Outlook - The current consensus EPS estimate is $4.95 on $5.73 billion in revenues for the coming quarter [8] - For the current fiscal year, the consensus EPS estimate is $20.53 on $23.77 billion in revenues [8] - The sustainability of the stock's immediate price movement will depend on management's commentary on the earnings call [3] Industry Context - Adobe belongs to the Zacks Computer - Software industry, which is currently in the top 32% of the 250 plus Zacks industries [9] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [9] Peer Performance - Simulations Plus (SLP), another company in the same industry, is expected to post quarterly earnings of $0.18 per share, representing a year-over-year change of +80% [10] - Simulations Plus' revenues are expected to be $18.69 million, up 28.9% from the year-ago quarter [11]

Adobe (ADBE) issued a revenue outlook that came in below analysts’ expectations, sending shares lower in extended trading Wednesday.  The Creative Cloud software provider projected 2025 revenue of $23.3 billion to $23.55 billion, below the analyst consensus of $23.77 billion from Visible Alpha. Its first-quarter revenue forecast of $5.63 billion to $5.68 billion also fell short of expectations. In its fiscal fourth-quarter, Adobe delivered revenue of $5.61 billion, up 11% year-over-year, and above the anal ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Revenue Growth and Performance - Adobe achieved record FY2024 revenue of $21.51 billion, representing 11% year-over-year growth[3][10] - Digital Media segment revenue reached $15.86 billion in FY2024, with 12% year-over-year growth, and net new Digital Media ARR exceeded $2.0 billion[13] - Document Cloud revenue grew to $3.18 billion in FY2024, an 18% year-over-year increase[14] - Creative revenue reached $12.68 billion in FY2024, with 10% year-over-year growth (11% in constant currency)[15] - Digital Experience segment revenue was $5.37 billion in FY2024, with 10% year-over-year growth, and subscription revenue grew 12% to $4.86 billion[15] - For FY2025, Adobe targets total revenue of $23.30 billion to $23.55 billion, with Digital Media segment revenue expected to grow 11% year-over-year[17] - Adobe expects a $200 million foreign exchange headwind to FY2025 revenue due to currency fluctuations[16] Financial Metrics and Cash Flow - Adobe reported record Q4 operating cash flows of $2.92 billion and FY2024 operating cash flows of $8.06 billion[5][11] - Remaining Performance Obligations (RPO) reached a record $19.96 billion at the end of Q4, reflecting 16% year-over-year growth[6] - Cash and cash equivalents increased to $7.613 billion from $7.141 billion year-over-year[29] - Total current assets rose to $11.232 billion from $11.084 billion year-over-year[29] - Net cash provided by operating activities increased to $2.921 billion from $1.597 billion year-over-year[31] Profitability and Earnings - GAAP net income for the quarter was $1.683 billion, up from $1.483 billion in the same period last year[31] - Non-GAAP operating income for the quarter was $2.596 billion, compared to $2.343 billion in the prior year[34] - Non-GAAP diluted net income per share for the quarter was $4.81, up from $4.27 in the same period last year[35] - GAAP effective income tax rate for the quarter was 15.5%, with a non-GAAP effective income tax rate of 18.5%[37] - Fiscal year 2025 GAAP diluted net income per share target ranges from $15.80 to $16.10, with a non-GAAP target of $20.20 to $20.50[38] - Fiscal year 2025 GAAP operating margin target is 36.0%, with a non-GAAP target of 46.0%[38] - GAAP diluted net income per share for the first quarter is $3.85, with a high of $3.90 for fiscal 2025[40] - Non-GAAP diluted net income per share for the first quarter is $4.95, with a high of $5.00 for fiscal 2025[40] - GAAP operating margin is 37.0%, while Non-GAAP operating margin is 47.0%[40] - GAAP effective income tax rate is 19.0%, adjusted to 18.5% for Non-GAAP[40] Share Repurchase and Capital Allocation - Adobe repurchased approximately 17.5 million shares during FY2024 and 4.6 million shares in Q4[7][12] - Shares used to compute diluted net income per share are 439 million[40] Non-GAAP Financial Measures - Adobe uses non-GAAP financial measures for internal planning and forecasting, providing greater transparency for key metrics[41] - Non-GAAP measures exclude items like stock-based compensation, amortization of intangibles, and income tax adjustments[42] - Adobe provides reconciliations of non-GAAP financial measures to GAAP measures for investor evaluation[42]

Adobe Inc ADBE will be reporting its fourth-quarter earnings on Wednesday. Wall Street expects $4.66 in EPS and $5.54 billion in revenues as the company reports after market hours.The stock is down 12.33% over the past year, up 18.46% over the past six months.Let’s look at what the charts indicate for Adobe stock and how the stock currently maps against Wall Street estimates.Read Also: Adobe Q4 Earnings Preview: Analyst Says Investors May Be Missing Healthy Subscriber GrowthAdobe Stock In Strong Bullish Tre ...