Adobe (ADBE) Q1 2023 Earnings

Adobe CEO Shantanu Narayen attends a media event in Mumbai on May 3, 2017.

Abhijit Butlerkar | Mint | Hindustan Times | Getty Images

adobe Shares rose 5% in after-hours trading on Wednesday after the software maker beat Wall Street expectations for its fiscal first quarter and raised its full-year outlook.

Here’s how the company does it:

  • income: Adjusted earnings per share came in at $3.80, compared with analysts’ expectations of $3.68 per share, according to Refinitiv data.
  • income: Analysts expected $4.66 billion, compared with analysts’ expectations for $4.62 billion, according to Refinitiv data.

Revenue for the quarter ended March 3 was up 9% year-over-year, according to statement. Net income edged down to $1.25 billion.

The company’s digital media unit, which includes the Creative Cloud design package, generated $3.4 billion in revenue, up 9 percent year-over-year, beating the average estimate of $3.36 billion among analysts polled by StreetAccount.

Adobe’s digital experience unit, which features Marketo marketing software, contributed $1.18 billion in revenue, slightly ahead of the StreetAccount consensus of $1.17.

For the second quarter, Adobe expects adjusted EPS of $3.75 to $3.80 on revenue of $4.75 billion to $4.78 billion. Analysts polled by Refinitiv had expected adjusted earnings of $3.76 a share on revenue of $4.76 billion.

Adobe raised its profit forecast for fiscal year 2023, and now expects adjusted earnings per share of $15.30 to $15.60, and new annual recurring net income from digital media of $1.7 billion. In December, Adobe said it had adjusted earnings per share of $15.15 to $15.45 for the full year and net new digital media ARR of $1.65 billion. Analysts polled by Refinitiv expected adjusted earnings of $15.31 a share.

This quarter, Adobe explain It has been in touch with regulators in the US, UK and EU over its impending $20 billion acquisition of design software startup Figma.

Excluding after-hours moves, Adobe shares are down 1 percent so far this year, compared with a 1 percent gain for the S&P 500 .

Executives will discuss the results with analysts on a conference call beginning at 5 p.m. ET.

This is breaking news. Please check for updates.

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