Adobe

Adobe Inc. (NASDAQ:ADBE) Adobe MAX 2024 Investor Q&A with Company Leadership October 14, 2024 5:00 PM ET Company Participants Jonathan Vaas – VP, IR Shantanu Narayen – Chair & CEO David Wadhwani – President, Digital Media Business Anil Chakravarthy – President, Digital Experience Business Daniel Durn – EVP & CFO Scott Belsky – Chief Strategy Officer & EVP, Design & Emerging Products Steve Day – Head of IR Conference Call Participants Jay Vleeschhouwer – Griffin Securities Michael Turrin – Wells Fargo Saket Kalia – Barclays Karl Keirstead – UBS Mark Murphy – JPMorgan Gregg Moskowitz – Mizuho Securities Jackson Ader – KeyBanc Capital Markets Stefan Slowinski – BNP Paribas Jonathan Vaas Welcome, everyone to Adobe MAX 2024 Investor Update. It’s great to see so many friendly faces here, from the investment community, some of our Board members in the back. Welcome. Thanks for coming. Just curious, show of hands, how […]

Shares fell after earnings despite signs that the company is monetizing its artificial-intelligence offerings. By Jacob Sonenshine Adobe’s earnings report painted a pretty picture of its ability to turn artificial intelligence into paying customers. But the reaction to its disappointing guidance was anything but pretty. That has created a buying opportunity in its stock. There was a lot to like about Adobe’s third-quarter results, with both earnings and sales easily topping estimates. The market, though, focused on management’s somewhat disappointing outlook, which included a forecast for “net new annual recurring revenue” — representing the sales Adobe expects to bring in from new customers or from increasing monthly subscription payments — to come in at $550 million in the fourth quarter, up 9% quarter over quarter. The fourth quarter usually sees double-digit growth, and the stock tumbled 13% after the report. It has since settled around $510. The market reaction was

By Jacob Sonenshine Adobe’s earnings report painted a pretty picture of its ability to turn artificial intelligence into paying customers. But the reaction to its disappointing guidance was anything but pretty. That has created a buying opportunity in its stock. There was a lot to like about Adobe’s third-quarter results, with both earnings and sales easily topping estimates. The market, though, focused on management’s somewhat disappointing outlook, which included a forecast for “net new annual recurring revenue” — representing the sales Adobe expects to bring in from new customers or from increasing monthly subscription payments — to come in at $550 million in the fourth quarter, up 9% quarter over quarter. The fourth quarter usually sees double-digit growth, and the stock tumbled 13% after the report. It has since settled around $510. The market reaction was understandable, if dubious. The lower-than-expected guidance could be a sign that competition from other

Adobe’s lighter-than-expected guidance may reflect the impact on its creative business from new competition and artificial intelligence, according to Melius Research analysts Ben Reitzes and Jack Adair in a research note. They say they’ve felt bewildered watching Adobe’s stock march higher almost every day for the past three months despite some concerning trends popping up in creative, but reality now seems to be sinking in for investors in light of the soft revenue outlook for F4Q. Adobe is sliding 8% to $539.84 in premarket trading. Still, the analysts say Adobe’s smaller document cloud business is continuously improving and overall 2024 is above guidance, while 3Q net new annually recurring revenue was above normal.

Adobe (ADBE) is expected to post solid fiscal Q2 results on June 13, but focus will also be on the company’s fiscal H2 guidance, RBC Capital Markets said in a note sent Wednesday. The software company has issued a lower-than-expected guidance for Q2 revenue of $5.25 billion to $5.30 billion, likely creating a “more attractive setup,” the investment bank said. “Outside of headline results, we expect the focus will be on guidance and particularly the drivers to H2 estimates including the monetary GenAI benefits from document cloud as well as increased color on the timing of potential consumption revenue,” it said. Generative artificial intelligence is seen as both a near- and long-term benefit to the company’s creative and experience businesses, and a potential catalyst to 2024 revenue growth, it said. The pricing headwinds should reach peak in Q3, the firm said, and become tailwind in the last fiscal quarter, “while

By Jon Swartz Adobe’s approach highlights the need for AI companies to think deeply about content moderation and protecting their brands Adobe Inc. is putting a creative spin on generative AI with apps and a partnership to animate business productivity. At the desktop-publishing pioneer’s annual conference in Las Vegas on Tuesday, Adobe (ADBE) announced a new AI-powered ad-creation platform, called GenStudio, for advertising and marketing campaigns, alongside updates to Adobe’s Firefly generative-AI model, which debuted a year ago. Firefly is what’s known as co-pilot technology, which leverages the company’s software tools to create original content. Additionally, Adobe and Microsoft Corp. (MSFT) detailed a technology partnership to help marketers overcome application and data silos and more efficiently manage everyday workflows. “If 2023 was about just being in awe of everything that’s happening and having fun with AI, 2024 is the beginning of leveraging AI to have real productivity gains,” David Wadhwani,

Keybanc analyst Jason Ader initiates coverage on Adobe (NASDAQ:ADBE) with a Underweight rating and announces Price Target of $445.

Piper Sandler analyst Brent Bracelin maintains Adobe with a Overweight and lowers the price target from $705 to $700.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We reduce our 12-month target to $630 from $700, on P/E of 30x our CY 25 EPS view, below historical. We keep our FY 24 (Nov.) EPS estimate at $18.00 and FY 25 at $20.74. ADBE posts Feb-Q EPS of $4.48 vs. $3.80, beating the $4.38 consensus. Sales rose 11% on growth in Creative Cloud (+11%), Document Cloud (+18%), and Digital Experience (+10%). We like accelerating RPO growth (+16%), a newly announced buyback of $25B (10% of market cap), and net new Creative ARR growth of 20% (ex. impact of prior pricing increases that will roll off). Despite below consensus guide, we see potential for ARR growth to accelerate in the next nine months as ADBE looks to monetize new AI offerings (e.g., AI Assistant in Acrobat/Reader).

Oppenheimer analyst Brian Schwartz maintains Adobe (NASDAQ:ADBE) with a Outperform and maintains $660 price target.

Adobe Systems (ADBE) shares were down more than 14% in recent Friday trading after a series of price target cuts from investment firms followed the release of its fiscal Q1 results. The company late Thursday reported fiscal Q1 non-GAAP net income of $4.48 per diluted share, up from $3.80 a year earlier. Analysts polled by Capital IQ expected $4.38. Revenue for the quarter ended March 1 was $5.18 billion, up from $4.66 billion a year earlier. Analysts expected $5.15 billion. For Q2, the software company is projecting non-GAAP EPS of $4.35 to $4.40 on revenue of $5.25 billion to $5.30 billion. Analysts polled by Capital IQ are looking for $4.37 and $5.31 billion, respectively. Separately, Adobe said it has authorized the repurchase of up to $25 billion of its shares through mid-March 2028. On Friday, UBS cut its price target on UBS stock to $540 from $600; HSBC cut its