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Here’s how Adobe did in its fourth financial quarter

adobe stock gains on upbeat guidance

Adobe Inc (NASDAQ: ADBE) is trading 6.0% up in extended hours after the cloud company reported strong results for its fiscal fourth quarter.

Adobe stock up on encouraging guidance

Investors are also cheering its current quarter guidance that came in better than expected.

Adobe is forecasting revenue to fall between $4.60 billion and $4.64 billion in Q1 on $3.65 to $3.70 of per-share earnings. In comparison, analysts had called for $4.26 billion and $3.64 a share, respectively.

Its full-year outlook was also roughly in line with Street estimates. According to CEO Shantanu Narayen:

Our market opportunity, unparalleled innovation, operational rigor and exceptional talent position us well to drive our next decade of growth.

Adobe also confirmed that this forecast excludes contribution from Figma – a $20 billion acquisition it expects to complete in fiscal 2023.

Adobe Q4 financial highlights

  • Net income printed at $1.18 billion versus the year-ago $1.23 billion
  • Per-share earnings also fell slightly from $2.57 to $2.53
  • On an adjusted basis, it earned $3.60 as per the press release
  • Revenue jumped 10% on a year-over-year basis to $4.53 billion
  • Consensus was $3.50 a share of adjusted EPS on $4.53 billion revenue

Wall Street recommends that you buy Adobe stock as it has upside to $365 a share.

What else was noteworthy?

Other notable figures in the earnings report include Digital Media revenue that went up 10% year-on-year. Revenue from Digital Experience climbed 14% as well.

According to Adobe Inc, its net new digital media ARR (annualised recurring revenue) stood at $576 million – ahead of its forecast. CFO Dan Durn said in the press release:

Adobe’s outstanding financial in fiscal 2022 drove record operating cash flows of $7.84 billion. Strong demand for our offerings, industry-leading innovation and track record set us up to capture massive opportunities in 2023 and beyond.

This tech stock is now down more than 35% year-to-date.

The post <strong>Here’s how Adobe did in its fourth financial quarter</strong> appeared first on Invezz.