Adobe Inc. reported its results for the first quarter of the fiscal year, which ended on March 1, 2024. The results shown in the Q1 report are quite promising, but the firm fell short on quarterly revenue conduct amid the increasing competition due to numerous artificial intelligence startups.
The design software company reported its earnings on every share of $4.48 in comparison to the estimated $4.38. While the revenue was expected to be around $5.14 billion, it was reported to be $5.18 billion, which is almost similar.
Moreover, the company’s financial target for the second quarter of this fiscal year fell short of the estimates that were hoping for revenue of $5.31 billion. Adobe has predicted it to be between $5.25 billion and $5.30 billion.
The company, however, enjoyed the revenue growth reported in the first quarter. In the press release, the firm said,
Adobe achieved revenue of $5.18 billion in its first quarter of fiscal year 2024, which represents 11 percent year-over-year growth or 12 percent in constant currency.
Moving on, the net worth of the company also fell to $620 million from $1.25 billion in the first quarter of last year. This implies that the value of $2.71 per share dropped to $1.36 per share.
In the same news release as of the earnings report, Adobe CEO Shantanu Narayen stated,
Adobe drove record Q1 revenue demonstrating strong momentum across Creative Cloud, Document Cloud and Experience Cloud.
Notably, it was not long ago that Adobe terminated its merger agreement with Figma after not receiving approval from the European Commission and the UK Competition and Markets Authority. As a result, the company had to pay a termination fee of $1 billion to Figma.
