For the quarter ended November 2024, Adobe Systems (ADBE) reported revenue of $5.61 billion, up 11.1% over the same period last year. EPS came in at $4.81, compared to $4.27 in the year-ago quarter.
The reported revenue represents a surprise of +1.24% over the Zacks Consensus Estimate of $5.54 billion. With the consensus EPS estimate being $4.66, the EPS surprise was +3.22%.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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): $13.74 billion versus the six-analyst average estimate of $13.87 billion.
- Business Unit - Digital Media - Total Digital Media ARR (Annual): $17.22 billion versus the five-analyst average estimate of $17.30 billion.
- Business Unit - Digital Media - Document Cloud ARR (Annual): $3.48 billion versus the five-analyst average estimate of $3.44 billion.
- Revenue- Digital Media: $4.15 billion compared to the $4.11 billion average estimate based on seven analysts. The reported number represents a change of +11.5% year over year.
- Revenue- Publishing and Advertising: $65 million compared to the $58.97 million average estimate based on seven analysts. The reported number represents a change of -1.5% year over year.
- Revenue- Digital Experience: $1.40 billion versus the seven-analyst average estimate of $1.37 billion. The reported number represents a year-over-year change of +10.3%.
- Revenue- Digital Media- Creative Cloud: $3.30 billion versus $3.27 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.3% change.
- Revenue- Digital Media- Document Cloud: $843 million versus $843.05 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +16.9% change.
- Revenue- Services and other: $160 million versus the four-analyst average estimate of $187.63 million. The reported number represents a year-over-year change of -6.4%.
- Revenue- Products: $81 million compared to the $114.53 million average estimate based on three analysts. The reported number represents a change of -29% year over year.
- Digital Experience Subscription Revenue: $1.27 billion versus $1.24 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +12.6% change.
- Revenue- Subscription: $5.37 billion versus the three-analyst average estimate of $5.23 billion. The reported number represents a year-over-year change of +12.6%.
Shares of Adobe have returned +3.9% over the past month versus the Zacks S&P 500 composite's +0.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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