Adobe (ADBE) earnings for the fourth quarter of 2022

Shantanu Narain, CEO, Adobe

Mark Newling | CNBC

Adobe Shares rose 6% in extended trading Thursday after the design software maker reported fiscal fourth-quarter earnings and guidance that beat analyst expectations.

Here’s how the company did:

  • Earnings: $3.60 per share, adjusted, versus $3.50 per share as expected by analysts, according to Refinitiv.
  • he won: $4.53 billion, compared to $4.53 billion as expected by analysts, according to Refinitiv.

Total revenue grew 10% year-over-year in the quarter that ended Dec. 2, according to A statement. In the previous quarter, revenue increased by 13%. Net income, at $1.18 billion, was down slightly from $1.23 billion in the year-ago quarter.

“We delivered record operating cash flow with an eye on profitability,” CEO Shantanu Narayen told analysts on a conference call. He said that the company remains cautious and will not be immune from the deterioration of the economy.

On guidance, Adobe called for $3.65 to $3.70 in adjusted earnings per share on $4.60 billion to $4.64 billion in revenue in the first fiscal quarter. Analysts surveyed by Refinitiv expected $3.64 in adjusted earnings per share and $4.64 billion in revenue. Figures do not include influence from figma. The company maintained instruct her For the full 2023 fiscal year.

Digital media company Adobe, which includes subscriptions to Creative Cloud design software, contributed $3.30 billion in revenue, not quite meeting StreetAccount’s consensus of $3.31 billion. Creative revenue grew 8% in the quarter. The Digital Experience unit, which includes Adobe’s marketing software, generated $1.15 billion in revenue, just over the $1.14 billion StreetAccount consensus.

During the call, the digital expertise company has successfully closed “many transformative deals spanning our solution suite,” said Anil Chakravarthy, Head of Division, during the call.

In the adobe quarter He said It will buy emerging software design firm Figma for about $20 billion in the largest deal for a 40-year-old public company to date.

“Overall, the regulatory process is proceeding as expected,” said David Wadwani, Head of Digital Media Business. The US Department of Justice and the UK’s Competition and Markets Authority are reviewing the deal, Wadwani said, and Adobe still expects to close it in 2023.

An analyst asked how Figma is dealing with the current economic environment. Currently, FIgma remains a private company, Narain said, and Adobe cannot discuss Figma’s latest performance.

When you remove the impact of the after-hours movement, Adobe shares are down 42% this year, while the S&P 500 is down 18% over the same period.

Watch: Adobe expects a 5.3% increase in Cyber ​​Monday sales year over year

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