Adobe (ADBE) Q2 2022 Results

Shantanu Narayen, Chairman and CEO of Adobe Systems Inc., during a telecast of the SoftBank World in Tokyo event held in Kawasaki, Kanagawa Prefecture, Japan on Thursday, Oct. 29, 2020. SoftBank World, the two-event day for customers and suppliers, ends on Friday.

Akio Kon | Bloomberg | Getty Images

Adobe shares fell as much as 5% in extended trading on Thursday after the design software maker gave full-year guidance that fell short of analysts’ expectations.

Here’s how the company did it:

  • Earnings: $3.35 per share, adjusted, versus $3.31 per share as expected by analysts, according to Refinitiv.
  • Revenue: $4.39 billion, versus $4.34 billion as forecast by analysts, according to Refinitiv.

For the full year, Adobe has lowered its forecast. He called for $13.50 in adjusted earnings per share on $17.65 billion in revenue. Analysts polled by Refinitiv had expected adjusted EPS of $13.66 and revenue of $17.85 billion. In December, guidance for fiscal 2022 was $13.70 in adjusted earnings per share and $17.90 billion in revenue.

The company highlighted the war in Ukraine, a headwind of $175 million in foreign currency, and summer seasonality. Microsoft and Salesforce also cited the currency impact when they released worse-than-expected projections in recent weeks. The US dollar has strengthened against the euro, Japanese yen and other currencies this year as the Federal Reserve raised interest rates to stave off inflation.

In the quarter ended June 3, the company’s revenue grew 14% year over year, according to a statement. Adobe’s second fiscal quarter net income of $1.18 billion was up about 6%.

Adobe’s digital media segment, which includes Creative Cloud and Document Cloud products, reported revenue of $3.20 billion, up 15% and more than StreetAccount’s consensus estimate of 3 .16 billion.

The Digital Experience business, which includes Adobe’s Experience Cloud that companies use for marketing and commerce, contributed $1.10 billion, up 17% and above the StreetAccount consensus of $1.08 billion. dollars.

During the quarter, Adobe announced price increases for select Creative Cloud subscriptions, citing the launch of new apps, and said a version of its Experience Cloud for healthcare customers was available.

Adobe ended the quarter with $4.88 billion in deferred revenue, up from $5.02 billion three months earlier and below the StreetAccount consensus of $5.00 billion.

Despite the after-hours move, Adobe shares are down about 36% year-to-date, while the S&P 500 index is down 23% over the same period.

Executives will discuss the results with analysts on a conference call beginning at 5 p.m. ET.

This is breaking news. Please check back here for updates.

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