Adobe Inc (NASDAQ:ADBE) stock was on the slide, down 5% to $593 in premarket deals, after the photoshop-maker’s guidance for 2024 fell short of expectations.
The disappointment came despite the software firm posting its fourth-quarter adjusted earnings at $4.27, topping expectations of $4.14 per share.
Revenue was $5.05 billion, up 12% year over year and above expectations of $5.03 billion.
Adobe’s digital media segment saw revenue of $3.72 billion, up 13% year-over-year.
However, despite the expectations beat, Adobe’s fiscal 2024 earnings guidance of $17.60 to $18 per share on revenue of $21.3 billion to $21.5 billion didn’t meet analyst forecasts. The Street had projected adjusted earnings of $18 per share on revenue of $21.73 billion.
"Adobe drove record revenue of $19.41 billion in FY23 and 17% year-over-year EPS growth, with strong momentum across Creative Cloud, Document Cloud and Experience Cloud," CEO Shantanu Narayen said in a statement.
"Adobe’s strategy, category leadership, ground-breaking innovation, exceptional talent and global customer base position us well for 2024 and beyond."