What You Need To Know Ahead of Adobe's Earnings Report

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Key Takeaways

  • Adobe is group to merchandise its second-quarter net study for nan 2024 fiscal twelvemonth aft nan doorbell connected Thursday.
  • The institution is expected to study that gross and nett income gained from nan year-ago period, according to expert estimates compiled by Visible Alpha.
  • Investors will apt beryllium watching for sustained momentum successful Adobe's Digital Media business.
  • Adobe could besides supply updates connected its artificial intelligence monetization plan.

Adobe (ADBE) is group to study its second-quarter net for nan 2024 fiscal year after nan doorbell connected Thursday, with investors apt watching for sustained Digital Media conception momentum and position connected nan company's artificial intelligence (AI) monetization strategy.

Analysts task Adobe's gross to travel successful astatine $5.29 cardinal for nan 2nd 4th of fiscal 2024, up from nan erstwhile 4th and year-ago period, according to estimates compiled by Visible Alpha.

Net income is expected to beryllium $1.51 billion, an summation from $1.3 cardinal successful nan fiscal 2nd 4th of 2023, while diluted earnings per stock (EPS) could travel successful astatine $3.34, compared to $2.82 successful nan aforesaid play a twelvemonth earlier.

Analyst Estimates for Q2 FY 2024 Q1 FY 2024 Q2 FY 2023
Revenue $5.29 billion $5.18 billion $4.82 billion
Diluted Earnings Per Share $3.34 $1.36 $2.82
Net Income $1.51 billion $620 million $1.3 billion

Key Metrics: Digital Media Growth

Adobe's Digital Media conception posted $3.82 cardinal successful gross successful nan first 4th of fiscal 2024, representing 12% year-over-year growth.

Analysts task Digital Media to grounds $3.89 cardinal successful revenue, which would correspond 10.8% maturation from nan year-ago period.

Citi analysts said they "expect to spot amended upside" to nan 2nd 4th of nan Digital Media segment, but noted "a tougher set-up" to meet statement estimates successful nan 3rd quarter, pinch nan 2nd half of nan fiscal twelvemonth "looking somewhat aggressive."

Business Spotlight: AI Monetization Outlook

Adobe recently unveiled an AI adjunct subscription add-on to its different offerings which could thief nan institution amended monetize nan emerging tech and compete pinch different large tech companies.

Adobe banal is "pressured by competitory concerns and underwhelming near-term genAI monetization," Deutsche Bank analysts said.

The analysts added "while Generative AI monetization remains connected nan travel [up]," they "expect investors to exit nan 4th emotion amended astir Adobe's broader GenAI positioning, aligning pinch nan expanding partner enthusiasm we are picking up astir GenStudio, Firefly Services, and civilization models."

In its net call, Adobe could besides supply much updates connected its plans to monetize AI.

Adobe shares person mislaid much than one-fifth of their worth since nan commencement of 2024, astatine $462.69 arsenic of Tuesday's close.

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  1. Adobe. “Q2 FY24 Adobe Earnings Conference Call.”

  2. Citi. "Adobe Inc. (ADBE.O) | Neutral Not Much Good News Besides Lower Expectations."

  3. Deutsche Bank. "Adobe Enterprise AI momentum building."

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