Adobe CEO Shantanu Narain speaks during an interview with CNBC on the floor of the New York Stock Exchange on February 20, 2024.
Brendan McDiarmid | Reuters
Adobe Shares fell as much as 11% in extended trading Thursday after the design software maker released strong first-quarter financial results but came in slightly short of quarterly revenue guidance.
Here's the company's performance, compared to estimates from analysts polled by LSEG, formerly known as Refinitiv:
Earnings per share: $4.48 adjusted vs. $4.38 expected Revenue: $5.18 billion vs. $5.14 billion expected
Adobe's revenue rose 11% year over year in the quarter that ended March 1, according to a statement. Net income fell to $620 million, or $1.36 per share, from $1.25 billion, or $2.71 per share, in the same quarter last year.
During the quarter, Adobe abandoned its $20 billion acquisition of design software startup Figma after UK regulators found competitive concerns. The company paid Figma a $1 billion severance fee. Adobe has announced an early release of its AI assistant for Reader and Acrobat.
Adobe expects fiscal second-quarter earnings of $4.35 to $4.40 per share on an adjusted basis, with revenue of $5.25 billion to $5.30 billion. The middle of the range indicates growth of 9%. Analysts polled by LSEG were looking for $4.38 per share and $5.31 billion in revenue.
Product improvements in the Adobe Express app, the Firefly Services AI offering and the new Acrobat Assistant should accelerate digital media's annual recurring revenue in the second half of the year, David Wadhwani, head of Adobe's digital media business, said about earnings. communicate.
The company said it has allocated $25 billion to buy back shares.
Excluding after-hours action, Adobe shares are down 4% so far this year, while the S&P 500 is up 8% over the same time period.
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