Adobe Stock Rallies After Earnings Top Estimates

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Adobe reported revenue of $4.66 billion, up 9% from a year ago.

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rallied in late trading Wednesday after the content development and marketing software company posted quarterly earnings that topped its own guidance, as well as Wall Street estimates. The company also boosted its full year outlook.

Adobe (ticker: ADBE) shares were up 4.5% in the after hours session, to $348.73.

Adobe said that the strong results reflect demand for digital content creation tools, despite a softer economy.

“Digital is reshaping how we connect and engage with the world around us,” CEO Shantanu Narayen said in remarks prepared for the company’s quarterly earnings call with analysts.

For the fiscal first quarter ended March 3, Adobe reported revenue of $4.66 billion, up 9% from a year ago, or 13% adjusted for currency. Guidance had called for revenue of between $4.6 billion and $4.64 billion; Wall Street consensus was $4.62 billion.

On an adjusted basis, Adobe earned $3.80 a share in the quarter, above both the guidance range of $3.65 to $3.70 a share and Wall Street consensus of $3.68. Under generally accepted accounting principles, the company earned $2.71 a share in the quarter.

Adobe said revenue from its digital media segment was $3.4 billion, up 9%, while digital experience segment revenue was $1.18 billion, up 11%. Net new digital media annualized recurring revenue—a measure that speaks to the health of the company’s subscription-based software business—was $410 million, boosting total digital media ARR to $13.67 billion.

For the fiscal second quarter, Adobe sees revenue ranging from…


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