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Cedears: Adobe shares soar almost 16% after exceeding market expectations

Cedears: Adobe shares soar almost 16% after exceeding market expectations
Cedears: Adobe shares soar almost 16% after exceeding market expectations

The company’s Digital Media business, which includes its Creative Cloud subscriptions, reported annualized net recurring revenue of $487 million, well above Wall Street expectations of $437.4 million.

The actions of Adobe extends the green for the second consecutive day this Friday, after the software company reported an increase in profits and sales for the quarter larger than expected by the market. This has an impact on your cedear found at local brokerages with the ADBE ticker and has a cost of around $13,320.00.

With the market already underway, Adobe shares are up almost 16%, in trading prior to the market opening they were around 14%, reaching US$524. In the last five days, the software firm’s paper has risen 13.3%, which extends to 11% in the last 30 days.

Profits and sales exceed expectations

In the three months ended May 31, the company reported adjusted earnings of $4.5 per share, above analyst estimates of $4.4 per share. Revenues in the period were US$5.31 billion, an increase of 10% compared to the same quarter last year and slightly above expectations of $5.29 billion.

The company’s Digital Media business, which includes its Creative Cloud subscriptions, reported annualized net recurring revenue of $487 million, well above Wall Street expectations of $437.4 million. Adobe noted that it is seeing how Creative Cloud subscribers are upgrading their plans to access the capabilities of Firefly, the company’s generative AI model for improving users’ creative work.

nasdaq

Adobe, the software company listed on the Nasdaq 100.

Adobe, the software company listed on the Nasdaq 100.

“We are pleased with the adoption of AI functionality, as well as its early monetization through Document Cloud and Creative Cloud, including our flagship applications, Firefly and Express services,” David Wadhwani, president of Adobe Digital Media, told the analysts on the company’s conference call.

While other software companies have recently lowered their full-year guidance citing concerns about an uncertain economic outlook and weakening business interest in AI development, Adobe CEO Shantanu Narayen told analysts on Thursday that the company had not observed significant changes in the economy.

Source: Ambito

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