Shantanu Narayen, CEO of Adobe, attends a media event in Mumbai on May 3, 2017.
Abhijit Bhatlekar | Mint | Hindustan Times | Getty Images
Adobe shares rose 5% in extended trading Wednesday after the software maker reported fiscal first-quarter results that beat Wall Street estimates and withdrew its full-year guidance.
Here’s how the company did it:
- income: $3.80 per share, adjusted, versus $3.68 per share, as analysts expected, according to Refinitiv.
- income: $4.66 billion, versus the $4.62 billion analysts expected, according to Refinitiv.
Revenue rose 9% year over year in the quarter ended March 3, according to the statement. Net income fell slightly to $1.25 billion.
The company’s digital media segment, which includes the Creative Cloud design software suite, posted revenue of $3.4 billion, up 9% year-over-year and beating the $3.36 billion consensus of analysts polled by StreetAccount.
Adobe’s Digital Experience segment, which houses Marketo’s marketing software, posted revenue of $1.18 billion, slightly above the StreetAccount consensus of $1.17.
In the second quarter, Adobe expects earnings per share of $3.75 to $3.80 on an adjusted basis and revenue of $4.75 billion to $4.78 billion. Analysts polled by Refinitiv had expected $3.76 per share in adjusted earnings and $4.76 billion in revenue.
Adobe raised its fiscal 2023 earnings guidance and now estimates adjusted earnings per share of $15.30 to $15.60 on $1.7 billion in net annual recurring revenue from Digital Media. In December, Adobe said it expected full-year adjusted earnings per share of $15.15 to $15.45, along with $1.65 billion in net new digital media ARR. Analysts polled by Refinitiv had expected $15.31 in adjusted earnings per share.
During the quarter, Adobe said it was engaging with regulators in the U.S., U.K. and EU over its pending $20 billion acquisition of software startup Figma.
Excluding the after-hours shift, Adobe shares are down 1% this year, while the S&P 500 is up 1%.
Executives will discuss the results with analysts during a conference call beginning at 5:00 p.m. ET.
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