Adobe reports weaker guidance on key revenue metric for Q2; shares slump By Investing.com
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Published Mar 14, 2024 04:19PM ET
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Investing.com – Adobe reported Thursday softer-than-expected guidance on a key revenue metric for the current quarter, adding to concerns that rising competition is stifling growth.
Adobe Systems Incorporated (NASDAQ:ADBE) shares fell 9% in after-hours trade following the report.
For fiscal Q2, the company guided digital media net new revenue, a key metric, of $440 million, missing analyst estimates of about $460 million. Adjusted EPS was expected in a range of $4.35 and $4.40 on revenue of $5.25B to $5.30B, compared with analyst estimates of $4.39 on revenue of $5.31B.
The weaker guidance offset better-than-expected fiscal first-quarter results.
Adobe reported EPS of $4.48 on revenue of $5.18 billion. Analysts polled by Investing.com anticipated EPS of $4.38 on revenue of $5.14B.
Its digital media business saw revenue of $3.82B, up 12% year-over-year growth in Q1, with net new digital media annualized recurring revenue, or ARR, of $432M.
The company also announced a a new $25 billion stock buyback program.
The results come ahead of the company’s investor day on Mar. 26, when the company is expected to unveil new products that could alleviate investor fears of rising competition from OpenAI’s text-to-video generator, Sora.
Adobe reports weaker guidance on key revenue metric for Q2; shares slump
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