Adobe Earnings (ADBE) for the second quarter of 2022

Shantanu Narayen, Chairman and CEO, Adobe Systems Inc. , during the telecast of the SoftBank World Tokyo event organized in Kawasaki, Kanagawa Prefecture, Japan, on Thursday, October 29, 2020. SoftBank World, the company’s two annual conferences – today’s event for customers and suppliers, ends Friday.

Akio-kun | Bloomberg | Getty Images

Adobe Shares fell as much as 5% in extended trading Thursday after the design software maker provided full-year guidance that fell short of analyst expectations.

Here’s how the company did:

  • gains: $3.35 a share, adjusted for, versus $3.31 a share, as expected by analysts, according to Refinitiv.
  • he won: $4.39 billion, versus $4.34 billion as analysts had expected, according to Refinitiv.

For the full fiscal year, Adobe lowered its guidance. It called for $13.50 in adjusted earnings per share on $17.65 billion in revenue. Analysts polled by Refinitiv expected $13.66 in adjusted EPS and $17.85 billion in revenue. In December, the guidance for fiscal year 2022 was $13.70 in adjusted earnings per share and $17.90 billion in revenue.

The company cited the war in Ukraine, the $175 million foreign exchange headwind, and the summer seasonality. Microsoft And the sales force She also cited the impact of the currency when it was issued Expectations worse than expected In recent weeks. The US dollar has gained strength against the euro, Japanese yen and other currencies this year as the Federal Reserve raised interest rates to stave off inflation.

Dan Dorn, Adobe’s chief financial officer, said on a conference call with analysts that the economic environment in the quarter was “uncertain.” He said management was pleased with the company’s success in acquiring talent in what he called a competitive job market.

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During the quarter ended June 3, the company’s revenue grew 14% year over year, according to A statement. Adobe’s net income in the second fiscal quarter, at $1.18 billion, increased about 6%.

Adobe’s digital media segment, which includes Creative Cloud and Document Cloud products, reported revenue of $3.20 billion, up 15% and more than the StreetAccount consensus estimate of $3.16 billion.

The digital experience business, which includes Adobe’s Experience Cloud that companies use for marketing and commerce, contributed $1.10 billion, up 17% and above the StreetAccount consensus of $1.08 billion.

During the quarter Adobe announce Prices of some Creative Cloud subscriptions hiked, citing the launch of new apps, and He said A version of Experience Cloud for healthcare customers was available.

Adobe ended the quarter with $4.88 billion in deferred revenue, down from $5.02 billion three months ago and below the StreetAccount consensus of $5.00 billion.

Despite the after-hours movement, Adobe shares are down about 36% since the beginning of the year, while the S&P 500 is down 23% over the same period.

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