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Adobe (ADBE) Boosts Digital Media Offerings With Firefly Models
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To bolster generative AI capabilities, Adobe (ADBE - Free Report) unveiled the next generation of Firefly models at the creativity conference, Adobe MAX.
The company added Adobe Firefly Image 2 Model, Adobe Firefly Vector Model and Adobe Firefly Design Model to its family of creative generative AI models.
The Firefly Image 2 Model is designed to enhance Firefly's creative control and image quality. It helps in generating creative visions quickly by allowing users to control output. It advances human rendering quality with improvements to skin, hair, eyes, hands and body structure, thus generating high-quality images and illustrations with better colors.
The Firefly Vector Model, on the other hand, is marked as the first generative AI model for vector graphics. It can generate human-quality vector and pattern outputs, thus supporting the next generation of high-quality designs and illustrations. The model also comes with Text to Vector Graphic capabilities that aid in generating a wide range of vector graphics from simple text prompts.
The Firefly Design Model helps in generating excellent and attractive template designs quickly by using the new Text to Template capability in Adobe Express. These templates are easily editable in Adobe Express.
Digital Media Segment in Focus
The latest move has bolstered the company’s Creative Cloud offerings, which, in turn, is likely to aid the Digital Media segment’s performance in the days ahead.
In third-quarter fiscal 2023, the segment generated revenues of $3.59 billion, which improved 11% on a year-over-year basis. Creative Cloud generated $2.91 billion in revenues, up 11% year over year. Creative annualized recurring revenues (ARR) was $11.97 billion.
For fourth-quarter fiscal 2023, Adobe expects Digital Media revenues between $3.67 billion and $3.70 billion. Net new ARR in the Digital Media segment is projected at $520 million.
Strengthening the Digital Media segment will likely continue to contribute well to the overall performance of this Zacks Rank #2 (Buy) company in the near term. This, in turn, will instill investor optimism in the stock.
For fourth-quarter fiscal 2023, Adobe projects total revenues between $4.975 billion and $5.025 billion. The Zacks Consensus Estimate for the same is pegged at $5.01 billion, reflecting growth of 10.6% year over year.
We note that not only Adobe but also companies like – Amazon (AMZN - Free Report) , Alphabet’s (GOOGL - Free Report) Google and Microsoft (MSFT - Free Report) , to name a few, are making concerted efforts toward bolstering presence in the booming generative AI space.
Per a Grand View Research report, the market is likely to hit $109.4 billion by 2030, witnessing a CAGR of 34.6% between 2022 and 2030.
Microsoft’s integration of OpenAI’s next-generation Large Language Models (LLM) — GPT-4 — into its search engine Bing and browser Edge to deliver a ChatGPT-like experience to users remains a major positive.
Microsoft Azure offers Azure OpenAI Service, which enables the seamless application of LLM and generative AI techniques in various use cases.
Meanwhile, Amazon’s cloud computing arm, Amazon Web Services (AWS), recently announced the general availability of its fully managed service called Amazon Bedrock. It provides seamless access to high-performing foundation models from AI companies through an API.
The company made the Amazon Titan Embeddings model generally available. It added Meta’s Llama 2 to Amazon Bedrock as a new model, which will be available through API.
AWS also unveiled a new capability of Amazon CodeWhisperer, designed to offer generative AI-powered customized code suggestions by leveraging an organization's own internal codebase.
On the other hand, Google, which forayed at the beginning of this year by unveiling its chatbot Bard, recently rolled out consulting services to bolster generative AI efforts. The new offerings include advice and tools through which Google Cloud strives to aid clients in adopting generative AI techniques.
These tools are designed to help customers boost automation in business operations by generating content and summarizing information with the power of AI.
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Adobe (ADBE) Boosts Digital Media Offerings With Firefly Models
To bolster generative AI capabilities, Adobe (ADBE - Free Report) unveiled the next generation of Firefly models at the creativity conference, Adobe MAX.
The company added Adobe Firefly Image 2 Model, Adobe Firefly Vector Model and Adobe Firefly Design Model to its family of creative generative AI models.
The Firefly Image 2 Model is designed to enhance Firefly's creative control and image quality. It helps in generating creative visions quickly by allowing users to control output. It advances human rendering quality with improvements to skin, hair, eyes, hands and body structure, thus generating high-quality images and illustrations with better colors.
The Firefly Vector Model, on the other hand, is marked as the first generative AI model for vector graphics. It can generate human-quality vector and pattern outputs, thus supporting the next generation of high-quality designs and illustrations. The model also comes with Text to Vector Graphic capabilities that aid in generating a wide range of vector graphics from simple text prompts.
The Firefly Design Model helps in generating excellent and attractive template designs quickly by using the new Text to Template capability in Adobe Express. These templates are easily editable in Adobe Express.
Digital Media Segment in Focus
The latest move has bolstered the company’s Creative Cloud offerings, which, in turn, is likely to aid the Digital Media segment’s performance in the days ahead.
In third-quarter fiscal 2023, the segment generated revenues of $3.59 billion, which improved 11% on a year-over-year basis. Creative Cloud generated $2.91 billion in revenues, up 11% year over year. Creative annualized recurring revenues (ARR) was $11.97 billion.
For fourth-quarter fiscal 2023, Adobe expects Digital Media revenues between $3.67 billion and $3.70 billion. Net new ARR in the Digital Media segment is projected at $520 million.
Strengthening the Digital Media segment will likely continue to contribute well to the overall performance of this Zacks Rank #2 (Buy) company in the near term. This, in turn, will instill investor optimism in the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For fourth-quarter fiscal 2023, Adobe projects total revenues between $4.975 billion and $5.025 billion. The Zacks Consensus Estimate for the same is pegged at $5.01 billion, reflecting growth of 10.6% year over year.
ADBE has gained 63.4% on a year-to-date basis.
Adobe Inc. Price and Consensus
Adobe Inc. price-consensus-chart | Adobe Inc. Quote
Competitive Scenario
We note that not only Adobe but also companies like – Amazon (AMZN - Free Report) , Alphabet’s (GOOGL - Free Report) Google and Microsoft (MSFT - Free Report) , to name a few, are making concerted efforts toward bolstering presence in the booming generative AI space.
Per a Grand View Research report, the market is likely to hit $109.4 billion by 2030, witnessing a CAGR of 34.6% between 2022 and 2030.
Microsoft’s integration of OpenAI’s next-generation Large Language Models (LLM) — GPT-4 — into its search engine Bing and browser Edge to deliver a ChatGPT-like experience to users remains a major positive.
Microsoft Azure offers Azure OpenAI Service, which enables the seamless application of LLM and generative AI techniques in various use cases.
Meanwhile, Amazon’s cloud computing arm, Amazon Web Services (AWS), recently announced the general availability of its fully managed service called Amazon Bedrock. It provides seamless access to high-performing foundation models from AI companies through an API.
The company made the Amazon Titan Embeddings model generally available. It added Meta’s Llama 2 to Amazon Bedrock as a new model, which will be available through API.
AWS also unveiled a new capability of Amazon CodeWhisperer, designed to offer generative AI-powered customized code suggestions by leveraging an organization's own internal codebase.
On the other hand, Google, which forayed at the beginning of this year by unveiling its chatbot Bard, recently rolled out consulting services to bolster generative AI efforts. The new offerings include advice and tools through which Google Cloud strives to aid clients in adopting generative AI techniques.
These tools are designed to help customers boost automation in business operations by generating content and summarizing information with the power of AI.