Shulou(Shulou.com)11/24 Report--

According to the news on the morning of March 16, Beijing time, Adobe today released the company's financial results for the first quarter of fiscal 2023.

According to the report, Adobe's first-quarter revenue was $4.655 billion, a record in the company's history, up 9% from $4.262 billion in the same period last year, up 13% year-on-year, excluding exchange rate changes, and net profit of $1.247 billion, down 2% from $1.266 billion in the same period last year Excluding certain one-time items (not in accordance with GAAP), Adobe's adjusted net profit for the first quarter was $1.746 billion, compared with $1.602 billion a year earlier.

Adobe's first-quarter revenue and adjusted earnings per share both beat Wall Street analysts' expectations and beat expectations for second-quarter revenue and adjusted earnings per share, sending its shares up more than 5 per cent in after-hours trading.

Summary of results: for the quarter ended March 3, 2023, Adobe's net profit was $1.247 billion, down 2% from $1.266 billion in the same period last year; diluted earnings per share were $2.71, compared with $2.66 per diluted share in the same period last year.

Excluding certain one-time items (not in accordance with GAAP), Adobe's adjusted net income for the first quarter was $1.746 billion, compared with $1.602 billion a year earlier, and adjusted earnings per share were $3.80, compared with $3.37 a year earlier, beating analysts' expectations. On average, 26 analysts had expected Adobe to earn $3.68 a share in the first quarter, according to Yahoo Finance.

Adobe's first-quarter revenue was $4.655 billion, the latest in the company's history, up 9% from $4.262 billion in the same period last year, and 13% year-on-year, excluding currency changes, which also beat analysts' expectations. On average, 25 analysts had expected Adobe's first-quarter revenue to reach $4.62 billion, according to Yahoo Finance.

By business unit, Adobe's first-quarter revenue from subscriptions was $4.373 billion, compared with $3.958 billion in the same period last year; revenue from products was $120 million, compared with $145 million; and revenue from services and other businesses was $162 million, compared with $159 million in the same period last year.

Digital business: (1) revenue from Adobe's digital media business in the first quarter was $3.4 billion, an increase of 9% over the same period last year, and 14% year-on-year growth excluding exchange rate changes. Of this total, creative revenue was US $2.76 billion, an increase of 8% compared with the same period last year, and 13% year-on-year growth excluding exchange rate changes; document cloud revenue was US $634 million, an increase of 13% over the same period last year, excluding exchange rate changes. 16% year-on-year growth. The annualized recurring revenue of the digital media business increased by $410 million month-on-month to $13.67 billion, with the annual recurring revenue of the creative business growing to $11.28 billion and that of the document cloud growing to $2.39 billion. (2) the revenue from Adobe's digital experience business in the first quarter was US $1.18 billion, an increase of 11% compared with the same period last year. Excluding the impact of exchange rate changes, the revenue of the digital experience business increased by 14% year-on-year. Of this total, revenue from the digital experience subscription business was $1.04 billion, an increase of 12% over the same period last year, and 14% year-on-year growth excluding exchange rate changes.

Adobe's total revenue cost in the first quarter was $568 million, compared with $512 million in the same period last year. Of this total, the revenue cost of the subscription business was $434 million, compared with $393 million in the same period last year; the revenue cost of the product business was $8 million, compared with $10 million in the same period last year; and the revenue cost of services and other businesses was $126 million, compared with $109 million in the same period last year.

Adobe's first-quarter gross profit was $4.087 billion, compared with $3.75 billion in the same period last year.

Adobe's total operating expenses were $2.501 billion in the first quarter, compared with $2.17 billion in the same period last year. Of this total, R & D expenditure was $827 million, compared with $701 million in the same period last year; sales and marketing expenses were $1.301 billion, compared with $1.158 billion in the same period last year; general and administrative expenses were $331 million, compared with $269 million in the same period last year; amortization expenses for acquired intangible assets were $4200, compared with $4200 for the same period last year.

Adobe's first-quarter operating profit was $1.586 billion, compared with $1.58 billion in the same period last year. Excluding certain one-time items (not in accordance with GAAP), Adobe's adjusted operating profit for the first quarter was $2.131 billion, compared with $1.993 billion in the same period last year.

In the first quarter, Adobe bought back about 5 million shares of the company. Adobe's cash flow from business operations in the first quarter was $1.69 billion.

At the end of the first quarter, Adobe's remaining performance obligations were $15.21 billion.

Outlook: outlook for the second quarter of fiscal 2023 Adobe expects revenue for the second quarter of fiscal 2023 to range from $4.75 billion to $4.78 billion, with an average of $4.765 billion exceeding analysts' expectations. On average, 25 analysts had expected Adobe's second-quarter revenue to reach $4.76 billion, according to Yahoo Finance.

By department, Adobe expects the net new value-added of annualized recurring revenue from digital media in the second quarter of fiscal 2023 to reach about $420 million; revenue from the digital media division will reach between $3.45 billion and $3.47 billion; revenue from the digital experience division will reach between $1.21 billion and $1.23 billion; and revenue from the digital experience subscription business will reach between $1.06 billion and $1.08 billion The tax rate according to the US general accounting standards will be about 21.5%, and the tax rate that does not follow the US general accounting standards will be about 18.5%.

On the earnings side, Adobe expects earnings per share in the second quarter of fiscal 2023 to be between $2.65 and $2.70, and earnings per share that are not in accordance with GAAP between $3.75 and $3.80, with an average of $3.775 exceeding analysts' expectations. On average, 26 analysts had expected Adobe's earnings per share, which were not calculated in accordance with GAAP, to reach $3.76 in the second quarter, according to Yahoo Finance.

Adobe forecasts that for the entire fiscal year 2023, the company's annualized recurring revenue from digital media is expected to achieve net new growth of $1.7 billion; earnings per share are expected to be between $10.85 and $11.15, and earnings per share, not in accordance with GAAP, are expected to be between $15.30 and $15.60, with an average of $15.45 exceeding analysts' expectations.

According to data provided by Yahoo Finance, 31 analysts had expected Adobe's earnings per share, which were not calculated in accordance with GAAP, to reach $15.31 in fiscal 2023.

Share price movements: Adobe shares rose 28 cents, or 0.08 percent, to close at $333.61 in regular Nasdaq trading. Adobe shares rose another $14.54, or 4.36 per cent, to $348.15 in after-hours trading as of 05:35 est on the 15th (05:35 Beijing time on the 16th). In the past 52 weeks, the highest price for Adobe is $473.49 and the lowest price is $274.73.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.