By Yasin Ebrahim
Investing.com - Adobe lifted its annual guidance Wednesday after reporting better-than-expected fiscal first-quarter results, driven by growth in its core digital media business.
Adobe Systems (NASDAQ:ADBE) shares gained 3.5% in after-hours trade following the report.
Adobe reported EPS of $3.80 on revenue of $4.66 billion. Analysts polled by Investing.com anticipated EPS of $3.68 on revenue of $4.62B.
Its digital media business saw revenue of $3.40B, up 9% year-over-year growth in Q1, with net new digital media annualized recurring revenue, or ARR, of $410 million.
“Adobe drove record Q1 revenue and we are raising our annual targets based on the tremendous market opportunity and continued confidence in our execution,” said Shantanu Narayen, chairman and CEO, Adobe.
For the second quarter, revenue was guided in a range of $4.75B to 4.78B, compared with Wall Street estimates for $4.75B.
For 2023, the company upgraded guidance on EPS to between $15.30 and $15.60 from $15.15 to $15.45 previously. Net new ARR from digital media was expected to come in at $1.7B from $1.65B previously.