In this video, I will go over Adobe's (ADBE -13.93%) first-quarter earnings report and specific comments made during the earnings call, and I'll explain why the stock is down.*Stock prices used were from the trading day of March 14, 2024. The video was published on March 14, 2024. ...

Adobe CEO Shantanu Narayen speaks during an interview with CNBC on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 20, 2024.Adobe shares fell 13% on Friday morning after the company reported first-quarter results that beat estimates but delivered a light quarterly revenue forecast.The design software company posted adjusted earnings per share of $4.48, above the $4.38 analysts were expecting, according to LSEG, formerly known as Refinitiv. Its revenue of $5.18 billion exceed ...

Key PointsAdobe had a solid quarter and outperformed on the top and bottom lines, but guidance was weak. Weak guidance means growth near 10% and broader margins in Q2. An acceleration is expected in the back half. Analysts are overwhelmingly bullish on this stock but are trimming their price targets, lowering the range's top end. 5 stocks we like better than AdobeAdobe’s NASDAQ: ADBE solid performance and outlook for growth will continue to support the price action over time, suggesting a buying opportunity ...

Shares of Adobe (ADBE -0.54%) declined 11% in Thursday's after-hours trading following the software-as-a-service (SaaS) company's release of its report for the first quarter of fiscal 2024 (ended March 1). The stock's drop is largely attributable to revenue guidance for the second quarter coming in lighter than Wall Street had expected.On the positive side, the first quarter's top and bottom lines both beat the analyst consensus estimate. And in the neutral column, the second quarter's adjusted earnings gui ...

Financial Data and Key Metrics Changes - Adobe achieved revenue of $5.18 billion in Q1 2024, representing a 12% year-over-year growth [6][26] - GAAP earnings per share for the quarter was $1.36, while non-GAAP earnings per share was $4.48, reflecting an 18% year-over-year growth [6][26] - Cash flows from operations were $1.17 billion, and the remaining performance obligation (RPO) was $17.58 billion, growing 16% year-over-year [27][32] Business Line Data and Key Metrics Changes - Digital Media revenue reached $3.82 billion, growing 13% year-over-year, with net new Digital Media ARR of $432 million [10][28] - Document Cloud revenue was $750 million, an 18% year-over-year growth, with $143 million of net new Document Cloud ARR added [12][28] - Creative revenue was $3.07 billion, representing an 11% year-over-year growth, with net new Creative ARR of $289 million [15][29] Market Data and Key Metrics Changes - The Experience Cloud business achieved $1.29 billion in revenue, marking a 12% year-over-year growth in subscription revenue [19][31] - Adobe's holiday shopping report indicated strong online spending during the 2023 holiday season, growing 4.9% year-over-year to $222.1 billion [19] Company Strategy and Development Direction - Adobe is focusing on generative AI across all its clouds, enhancing products like Photoshop, Illustrator, and Acrobat with AI capabilities [7][8] - The company aims to leverage its proprietary data and models to drive innovation and customer engagement [7][8] - Adobe is committed to expanding its market presence through new offerings like Firefly Services and GenStudio, targeting enterprise customers [14][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Adobe's ability to attract new users and deliver value to existing customers, driving growth and profitability [35] - The company anticipates continued momentum in the second half of the year, supported by product innovations and the rollout of AI features [33][74] Other Important Information - Adobe announced a new $25 billion share repurchase program, reflecting its commitment to returning capital to shareholders [32] - The termination payment related to the Figma transaction impacted GAAP EPS, which would have been higher without it [27] Q&A Session Summary Question: Insights on Creative ARR and Pricing Headwinds - Management acknowledged that new creative ARR was up more than 20% year-over-year when excluding pricing increases, indicating a significant pricing headwind [38] - They emphasized a strong start to the year and outlined strategies to expand access and introduce new offers to drive growth [39][40] Question: Clarification on Guidance and Market Conditions - Management reiterated confidence in achieving the full-year guidance, factoring in pricing actions and product roadmap developments [44][74] - They noted that desktop products are still in beta, impacting value and utilization metrics [45] Question: Document Cloud Performance and Future Trends - Management highlighted strong performance in Document Cloud, driven by go-to-market efforts and product innovation, with expectations for continued growth [58][60] - They anticipate that the Creative Cloud will see acceleration in the second half of the year as new innovations are monetized [62] Question: Impact of Generative AI on Video Editing Market - Management discussed the potential of generative AI to enhance video editing applications, emphasizing the need for editing tools as video generation becomes more prevalent [66][70] Question: Reiteration of Digital Media ARR Guidance - Management confirmed confidence in the Digital Media ARR guidance for the year, with expectations for acceleration in the second half [72][74] Question: Pricing Actions and Their Impact - Management explained that prior pricing actions would have a lingering effect into Q3, with a clearer picture expected in Q4 [76]

For the quarter ended February 2024, Adobe Systems (ADBE) reported revenue of $5.18 billion, up 11.3% over the same period last year. EPS came in at $4.48, compared to $3.80 in the year-ago quarter.The reported revenue represents a surprise of +0.94% over the Zacks Consensus Estimate of $5.13 billion. With the consensus EPS estimate being $4.38, the EPS surprise was +2.28%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...

Thursday, March 14th, 2024Directly following the release of this morning’s Producer Price Index (PPI), Retail Sales and Weekly Jobless Claims, all four major indices climbed higher, even though it was pretty clear we weren’t going to see any interest rate cuts for at least 13 weeks (the June 11-12 FOMC meeting), but within minutes of the opening bell, they had all dropped into negative territory. Up from session lows a half-hour before the close, the Dow finished -0.35%, the S&P 500 -0.29%, the Nasdaq -0.30 ...

Adobe Systems (ADBE) came out with quarterly earnings of $4.48 per share, beating the Zacks Consensus Estimate of $4.38 per share. This compares to earnings of $3.80 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.28%. A quarter ago, it was expected that this software maker would post earnings of $4.13 per share when it actually produced earnings of $4.27, delivering a surprise of 3.39%.Over the last four quarters, the compa ...

Key TakeawaysAdobe shares dropped in after-hours trading as the company reported first-quarter earnings surpassing analyst estimates, but issued soft guidance for the second quarter.The company's revenue for the first fiscal quarter of 2024 at $5.18 billion hit a record high that beat estimates, while net income and diluted earnings per share came in at $2.05 billion and $4.48, respectively, also above projections.However, Adobe issued a weak outlook for second quarter, guiding for revenue between $5.25 bil ...

Adobe CEO Shantanu Narayen speaks during an interview with CNBC on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 20, 2024.Adobe shares tumbled as much as 9% in extended trading on Thursday after the design software maker issued strong fiscal first-quarter results but came up slightly short on quarterly revenue guidance.Here's how the company did, compared with estimates from analysts polled by LSEG:Earnings per share: $4.48, adjusted, vs. $4.38 expectedRevenue: $5.18 billi ...