Adobe Systems Inc (NASDAQ-ADBE) is a software company headquartered in San Jose, California, USA. The company’s Chairman and CEO is Mr. Shantanu Narayen. The company offers products and services used by professionals, marketers, knowledge workers, application developers. The company’s business is divided into three segments: digital media, digital marketing, print, and publishing. The Digital Media segment provides tools and solutions that enable individuals, small and medium-sized businesses, and enterprises to create, publish, promote, and monetize their digital content. The Digital Marketing segment provides solutions and services to create, manage, execute, measure and optimize digital advertising and marketing. The Print and Publishing segment addresses market opportunities ranging from the diverse authoring and publishing needs of technical and enterprise publishing.
Adobe (Nasdaq:ADBE) recently reported financial results for the second quarter of fiscal 2024. Chairman and CEO Shantanu Narayen said the company achieved record revenue of $5.31 billion, driven by strong growth across Creative Cloud, Document Cloud and Experience Cloud. He further said: “Our highly differentiated approach to AI and innovative product delivery is attracting an expanding customer base and delivering more value to existing users.” CFO and vice president Dan Durn said: “Our market-leading products, strong execution and world-class financial discipline position us well for the second half of 2024 and beyond.”
Digital Media segment revenue grew 12% year-over-year to $3.91 billion. Creative revenues increased 11% year-over-year to $3.13 billion. Document Cloud revenue increased 19% to $782 million. Revenue from the Digital Experience segment grew 9% to $1.33 billion. Digital Experience subscription revenue was $1.20 billion, up 13% year over year.
Shares of Adobe Inc. also saw its biggest share price gain in more than four years after releasing its 2Q 2024 earnings results. This is also due to the company’s outlook for the second half of 2024, in which it projects strong future sales of its creative products, suggesting that customers are shifting to the company’s new AI-based tools. The company expects its creative AI software and digital media business to grow to $460 million in revenue, exceeding the $435.2 billion estimate of multinational investment corporations.
29 Wall Street brokers have set an average target price of $611.93 per share for Adobe (Nasdaq:ADBE) for the short-to-medium term investment horizon.
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