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The Markets
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Software & services

Adobe reveals record 1Q revenue; boosts its year-end Digital Media targets

Adobe Inc has announced that its first quarter fiscal 2023 revenue rose 9% year-over-year to a record $4.66 billion, led by a 13% increase in its Document Cloud revenue.

The tech company also recorded diluted earnings per share (EPS) for the period of $2.71 on a GAAP basis and $3.80 on a non-GAAP basis.

Its financial results surpassed the analyst consensus earnings forecast of $3.68 a share on revenue of $4.62 billion, according to MarketWatch, sending the company’s stock price about 5% higher in after-hours trading on Wednesday.

As well, Adobe raised its Digital Media segment’s net new Annualized Recurring Revenue (ARR) and EPS annual targets to about $1.7 billion and $10.85 to $11.15 on a GAAP basis ($15.30 to $15.60 non-GAAP), respectively.

“Adobe drove record 1Q revenue and we are raising our annual targets based on the tremendous market opportunity and continued confidence in our execution,” Adobe CEO Shantanu Narayen said in a statement.

“Creative Cloud, Document Cloud and Experience Cloud are mission-critical in fueling the global digital economy,” Narayen added.

Adobe noted its cash flows from operations for the period were $1.69 billion.

The company added that it repurchased about 5 million of its shares during the quarter.

Contact Sean at sean@proactiveinvestors.com

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