Adobe Inc. (ADBE)

[winston]

not vested

Adobe provided a sales outlook that met analysts’ expectations, but disappointed investors who expected demand for the company’s artificial intelligence (AI) tools would boost revenue.

Sales will be US$4.98 billion to US$5.03 billion in the period ending in November, the San Jose, California-based company said on Thursday (Sep 14). Analysts, on average, projected US$5 billion, according to data compiled by Bloomberg.

Profit, excluding some items, will be as much as US$4.15 a share, compared with the average estimate of US$4.06.

The company said fiscal fourth-quarter sales in the Digital Media unit, which includes signature offerings such as Photoshop, will be as much as US$3.7 billion, beating the average estimate of US$3.66 billion.

Revenue in the Digital Experience unit, which includes marketing and analytics software, will be about US$1.26 billion, meeting the average projection.

Fiscal third-quarter sales increased 10 per cent to US$4.89 billion, exceeding the average projection of US$4.87 billion.

Profit, excluding some items, was US$4.09 a share, compared with the average estimate of US$3.98.

Digital Media revenue gained 11 per cent to US$3.59 billion in the period ended Sep 1.

Sales in Digital Experience jumped 10 per cent to US$1.23 billion.

Source: Phillips

[behappyalways]

One piece is worth a hundred pieces?!
Adobe develops a stunning "LED fabric" dress that automatically changes into patterns!
A sense of technological futurity. The audience was amazed by the stunning "digital dress" made of LED sequins

一件抵百件?! Adobe開發超炫"LED布料" 禮服自動變花樣! 科技未來感.全場驚艷超炫LED亮片製"數位洋裝"│記者 王少筠│【國際大現場】20231111│三立新聞台

https://m.youtube.com/watch?v=beg5S5U_BOg

[winston]

not vested

Adobe to bring full AI image generation to Photoshop this year

Adobe's image and video editing tools are widely used by creative professionals, but it faces rising competition from startups such as Microsoft-backed OpenAI, Midjourney and Stability AI.

Adobe is developing its own image-generation AI system called Firefly.

Source: Reuters

https://www.investing.com/news/stock-ma ... ar-3390157

[winston]

not vested

Adobe shares slip 10% on soft sales forecast

MAR 14 2024

KEY POINTS

Adobe issued strong fiscal first-quarter results but came up slightly short on quarterly revenue guidance.

During the quarter, Adobe paid $1 billion to Figma as the two companies abandoned their acquisition plans.

Adobe recently announced an early version of an artificial intelligence assistant for its Reader and Acrobat apps.

The company said it was setting aside $25 billion for share buybacks.

Source: CNBC

https://www.cnbc.com/2024/03/14/adobe-a ... -2024.html

[winston]

not vested

Adobe Inc - Valuations remain expensive
Recommendation: REDUCE (Maintained); TP: US$465.00

4Q23 results met our expectations.

FY23 revenue/PATMI were at 100%/101% of our FY23e forecasts.

4Q23 PATMI increased 26% YoY to US$1.5bn driven by higher operating leverage, lower taxes, and higher interest income.

For FY24e, Adobe expects adj. EPS to grow by 11% YoY to US$17.80 on total revenues of US$21.4bn, up 10% YoY.

Management signaled that the AI-related boost and recent price hike for its Creative Cloud offerings would take longer to materialize.

We maintain a REDUCE recommendation with a higher DCF target price of US$465 (WACC 7.3%, g 4%), up from US$441.

We cut our FY24e revenue by 1% to account for lower-than-expected pricing impact, while increasing FY24e PATMI by 3% to reflect lower expenses.

However, we believe ADBE valuations remain expensive as its market cap is up about 60% or US$100bn over the last six months on an annual incremental profit opportunity of US$4bn assuming Creative Cloud revenue doubles with its generative AI functionality Firefly.

Source: Phillips

https://www.poems.com.sg/stock-research/ADBE/

[behappyalways]

The language is very weird. But the way it’s being interpreted, is not good for Adobe.

This creator isn’t happy, others will follow.

$ADBE is a tool.

It sounds like a hardware store saying it has rights to the furniture you built with the tools you bought at their store.
https://x.com/AyeshaTariq/status/1799349819473018969

[winston]

not vested

The U.S. government on Monday sued Adobe, accusing the maker of Photoshop and Acrobat of harming consumers by enrolling them in its most lucrative subscription plans without clearly disclosing important terms.

In a complaint filed in the San Jose, California, federal court, the government said Adobe failed to adequately disclose hefty early termination fees, sometimes reaching hundreds of dollars, when customers sign up for “annual, paid monthly” subscription plans.

Monday’s lawsuit seeks civil fines, an injunction and other remedies.

Adobe did not immediately respond to a request for comment.

Source: Phillips

[winston]

not vested

Adobe Inc - Outlook raised, revenue growth stagnant
Recommendation: REDUCE (Maintained); TP: US$480.00; Last Close: US$522.25

2Q24 revenue/adj. PATMI was in line with expectations at 49%/50% of our FY24e forecasts.

In 2Q24, revenue grew 10% YoY to US$5.3bn led by higher subscription sales for its creative and document management solutions.

Adj. PATMI rose 13% YoY to US$2bn on higher operating leverage.

For FY24e, Adobe expects its total revenue to grow by 10% YoY to US$21.45bn (FY23: 10% YoY), taking the midpoint.

The company increased its net new Digital Media ARR forecast to US$1.95bn from US$1.9bn driven by subscriber growth and early traction around new product innovations such as Firefly and Acrobat AI assistant. Adj. EPS guidance also raised to US$18.10 from US$17.80 (FY23: US$16.07).

We maintain REDUCE but raise our DCF target price to US$480.00 (prev. US$465.00), with an unchanged WACC of 7.3% and a terminal growth rate of 4%.

Our FY24e revenue estimates remain unchanged while we nudge higher our adj. PATMI by 1% to account for lower expenses.

While Adobe is witnessing strong demand trends for its new generative AI solutions, it needs to demonstrate accelerated revenue growth.

In addition, the company faces tough competition across its markets by startups like Canva and OpenAI's DALL-E, which could provide headwinds to Adobe’s growth and monetization plans.

Source: Phillips

https://www.poems.com.sg/stock-research/ADBE/

[behappyalways]

Adobe falls after sales outlook fails to show AI uplift
https://www.theedgesingapore.com/news/a ... -ai-uplift

[winston]

not vested

Photoshop maker Adobe forecast fiscal 2025 revenue below Wall Street estimates on Wednesday (Dec 11), indicating the company’s investments to weave artificial intelligence (AI) into its software applications were taking longer to bear fruit.

Shares of the company fell over 8 per cent in extended trading.

The company forecast revenue between US$23.3 billion and US$23.55 billion compared with estimates of US$23.78 billion.

The company is making significant investments in AI-driven image and video generation technologies in response to the growing competition from well-capitalised startups such as Stability AI and Midjourney.

While Adobe projected strong growth for the second half of the year in June, its forecast on Wednesday indicated the company was still struggling to monetise its AI push.

Source: Phillips