Adobe lifts profit forecast for fiscal 2023 and beats estimates on quarterly results

Adobe shares rose 5% in extended trading on Wednesday after software maker announced fiscal first-quarter results that topped Wall Street estimates and lifted its full-year foercast.

Here’s how the company did:

• Earnings: $3.80 per share, adjusted, vs. $3.68 per share as expected by analysts, according to Refinitiv.
• Revenue: $4.66 billion, vs. $4.62 billion as expected by analysts, according to Refinitiv.

Revenue 9% year over year in the quarter that ended March 3, according to a statement. Net income fell slightly to $1.25 billion.

The company’s Digital Media segment, which includes the Creative Cloud design software bundle, generated $3.4 billion in revenue, up 9% from a year and above the $3.36 billion consensus among analysts polled by StreetAccount.

Adobe’s Digital Experience segment, which features Marketo marketing software, contributed $1.18 billion in revenue, just above the $1.17 billion StreetAccount consensus.

For the second quarter, Adobe expects earnings per share of $3.75 to $3.80 on an adjusted basis and $4.75 billion to $4.78 billion in revenue. Analysts surveyed by Refinitiv had been expecting $3.76 per share in adjusted earnings and $4.76 billion in revenue.

Adobe bumped up its profit forecast for the 2023 fiscal year, and now sees $15.30 to $15.60 in adjusted earnings per share, with $1.7 billion in net new annualized recurring revenue from Digital Media. In December Adobe said it was looking for $15.15 to $15.45 in adjusted earnings per share for the full year, with $1.65 billion in net-new Digital Media ARR. Analysts polled by Refinitiv were looking for $15.31 in adjusted earnings per share.

One recent acquisition is bearing fruit at Adobe. The company is getting existing video clients to pay for Frame.io, a tool for reviewing and approving videos that it acquired for $1.24 billion in 2021, Dan Durn, Adobe’s finance…