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Adobe (ADBE) Reports Q1 Earnings: What Key Metrics Have to Say
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For the quarter ended February 2024, Adobe Systems (ADBE - Free Report) reported revenue of $5.18 billion, up 11.3% over the same period last year. EPS came in at $4.48, compared to $3.80 in the year-ago quarter.
The reported revenue represents a surprise of +0.94% over the Zacks Consensus Estimate of $5.13 billion. With the consensus EPS estimate being $4.38, the EPS surprise was +2.28%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Adobe performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Business Unit - Digital Media - Creative ARR (Annualized Recurring): $12.78 billion compared to the $12.75 billion average estimate based on five analysts.
Business Unit - Digital Media - Total Digital Media ARR (Annual): $15.76 billion versus the four-analyst average estimate of $15.70 billion.
Business Unit - Digital Media - Document Services ARR (Annual): $2.98 billion compared to the $2.97 billion average estimate based on four analysts.
Revenue- Digital Media: $3.82 billion versus $3.79 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +12.4% change.
Revenue- Publishing and Advertising: $77 million versus the seven-analyst average estimate of $68.66 million. The reported number represents a year-over-year change of -8.3%.
Revenue- Digital Experience: $1.29 billion versus the seven-analyst average estimate of $1.28 billion.
Revenue- Digital Media- Creative Cloud: $3.07 billion versus the five-analyst average estimate of $3.06 billion. The reported number represents a year-over-year change of +11.1%.
Revenue- Digital Media- Document Cloud: $750 million versus $726.40 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +18.3% change.
Revenue- Services and other: $147 million compared to the $159.79 million average estimate based on four analysts. The reported number represents a change of -9.3% year over year.
Revenue- Products: $119 million versus $131.53 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -0.8% change.
Digital Experience Subscription Revenue: $1.16 billion versus $1.15 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.7% change.
Net Revenue- Subscription: $4.92 billion compared to the $4.83 billion average estimate based on three analysts. The reported number represents a change of +12.4% year over year.
Shares of Adobe have returned -5.2% over the past month versus the Zacks S&P 500 composite's +4.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Adobe (ADBE) Reports Q1 Earnings: What Key Metrics Have to Say
For the quarter ended February 2024, Adobe Systems (ADBE - Free Report) reported revenue of $5.18 billion, up 11.3% over the same period last year. EPS came in at $4.48, compared to $3.80 in the year-ago quarter.
The reported revenue represents a surprise of +0.94% over the Zacks Consensus Estimate of $5.13 billion. With the consensus EPS estimate being $4.38, the EPS surprise was +2.28%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Adobe performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Business Unit - Digital Media - Creative ARR (Annualized Recurring): $12.78 billion compared to the $12.75 billion average estimate based on five analysts.
- Business Unit - Digital Media - Total Digital Media ARR (Annual): $15.76 billion versus the four-analyst average estimate of $15.70 billion.
- Business Unit - Digital Media - Document Services ARR (Annual): $2.98 billion compared to the $2.97 billion average estimate based on four analysts.
- Revenue- Digital Media: $3.82 billion versus $3.79 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +12.4% change.
- Revenue- Publishing and Advertising: $77 million versus the seven-analyst average estimate of $68.66 million. The reported number represents a year-over-year change of -8.3%.
- Revenue- Digital Experience: $1.29 billion versus the seven-analyst average estimate of $1.28 billion.
- Revenue- Digital Media- Creative Cloud: $3.07 billion versus the five-analyst average estimate of $3.06 billion. The reported number represents a year-over-year change of +11.1%.
- Revenue- Digital Media- Document Cloud: $750 million versus $726.40 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +18.3% change.
- Revenue- Services and other: $147 million compared to the $159.79 million average estimate based on four analysts. The reported number represents a change of -9.3% year over year.
- Revenue- Products: $119 million versus $131.53 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -0.8% change.
- Digital Experience Subscription Revenue: $1.16 billion versus $1.15 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.7% change.
- Net Revenue- Subscription: $4.92 billion compared to the $4.83 billion average estimate based on three analysts. The reported number represents a change of +12.4% year over year.
View all Key Company Metrics for Adobe here>>>Shares of Adobe have returned -5.2% over the past month versus the Zacks S&P 500 composite's +4.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.