Adobe shares rose as much as 4% late Tuesday after the software maker issued guidance for the next fiscal year that fell short of expectations, but blamed some of the shortfall on a stronger dollar. and unfavorable exchange rates.
For fiscal year 2023, Adobe called for $15.15 to $15.45 in adjusted earnings per share of $19.1 billion to $19.3 billion in revenue. time reaffirms guidance for fiscal year 2022, according to a statement. Forecast excludes impact from $20 billion plan purchase of design software startup Figma, slated to close in 2023. Analysts polled by Refinitiv had expected adjusted earnings of $15.53 per share. on sales of $19.82 billion.
However, the exchange rate, which has already hit tech and other industries badly, is expected to drag down Adobe’s revenue growth by 4 percentage points, the company said. This estimate implies 9% revenue growth for the next fiscal year. inside quarter ended September 2, revenue increased 12.7%.
Adobe’s Creative division, which includes Creative Cloud design software subscriptions, which accounts for 59% of total revenue, has record customer retention, Dan Durn, the company’s chief financial officer, told the company. analysts last month. During the quarter, 59% revenue came from the Americas, up from 57% in the previous quarter.
Adobe says its estimates have an impact on macroeconomic conditions, which have resulted in longer sales cycles for several other tech companies over the past few months, including Quality and Can be controlled.
“Adobe’s continued success in this uncertain macroeconomic environment underscores that our solutions are mission-critical to a growing group of customers,” said CEO Shantanu Narayen. quoted in the statement.
Narayen told analysts during a meeting at Adobe’s Max conference in Los Angeles, the company will likely increase headcount by a lower percentage than it did a few years ago.
