Despite the uncertain economy, Adobe continues to see demand for its creative design and analytic software. In the extended trading, the shares increased in value.
Despite regulatory reviews in the US, UK and Europe, the company expects to complete its purchase of Figma next year.
The revenue will be $19.2 billion in the fiscal year that begins this month. The company said in a statement that it would make a profit of between 15 and 15.45 a share. The forecast was the same as the guidance given in October. Figma isn't included in Adobe's forecast.
Chief Financial Officer Dan Durn said that strong demand for our offerings, industry-leading innovation and track record of top and bottom-line growth set us up to capture the massive opportunities in the future.
The proposed acquisition of Figma by Adobe is intended to expand its user base to more casual consumers. One of the most expensive purchases of a private software maker would be made by this company.
According to the transcript, the company expects European Union regulators to review the deal.
David Wadhwani, Adobe's president of digital media, said the regulatory process was going as expected. The facts underlying the transaction are positive and we expect to get approval to close the transaction in the year 2023.
Adobe is working on a plan for Figma.
The acquisition of Figma should support Adobe's leading position in digital creation and marketing, according to an analyst.
After closing at $328.71 in New York, the shares rose to a high of $350.93. The stock has lost 42% of its value this year.
What Bloomberg Intelligence Says:
Adobe’s fiscal 2023 guidance calls for the Digital Media segment to grow 13% in constant currency, or 9% after accounting for FX headwinds, affirming our view that growth in the Creative Cloud unit is easing. Though total sales guidance was slightly below consensus, adjusted EPS view for the full year indicates that margin may not come under much pressure next year, which is an encouraging sign.
— Anurag Rana and Andrew Girard
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The fiscal fourth quarter's revenue was in line with estimates. Excluding some items profit was $3.60 a share. The analysts projected $3.50. Many tech companies, including Meta Platforms Inc. and Amazon.com Inc., have announced layoffs, but Adobe has not.
Digital media sales increased 10% in the third quarter. The digital experience unit saw revenue rise to $1.15 billion.(Updates with segment revenue in the final paragraph.)