Adobe Systems Incorporated (NASDAQ:ADBE) has reaffirmed its fiscal 2022 earnings and revenue estimates but saw its 2023 guidance fall short of expectations, which the software maker blamed partly on a stronger dollar.
For its 2023 fiscal year, Adobe expects adjusted earnings per share of $15.15 to $15.45 on revenue of $19.1 billion to $19.3 billion. The company said the forecast excludes any impact from its planned $20 billion acquisition of design software startup Figma, which is expected to close in 2023. Analysts polled by Refinitiv had expected 2023 adjusted earnings of $15.53 per share on $19.82 billion in revenue.
Adobe accompanied news of the Figma acquisition on September 16, 2022, with a fourth-quarter revenue forecast of $4.52 billion, which was below the $4.58 billion estimated by analysts. The company's third-quarter profit fell nearly by 6%, reflecting the hit from a stronger US dollar and higher costs.
READ: Adobe signs US$20bln deal to acquire cloud-based designer platform start-up Figma
Forex rates are now expected to reduce the company’s revenue growth by 4 percentage points, Adobe said on Tuesday, an estimate that implies 9% revenue growth for the next fiscal year. In its third quarter to September 2, 2022, Adode saw revenue grow by 12.7%.
“Adobe’s continued success in this uncertain macroeconomic environment underscores that our solutions are mission-critical to a growing universe of customers,” CEO Shantanu Narayen said in a statement.
The company will probably increase headcount by a lower percentage than it has in the past few years, Narayen told analysts in a meeting at Adobe’s Max conference in Los Angeles, CNBC reported.
Last month, Dan Dunn, the company’s finance chief told analysts that the Creative portion of Adobe, which includes Creative Cloud design software subscriptions that account for 59% of total revenue, enjoyed record customer retention, CNBC noted.
Contact the author at jon.hopkins@proactiveinvestors.com