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For Q1 of the fiscal year 2022, Adobe reported revenue of 4.26 billion. The figure represented a growth of 9% year over year.

Adobe Inc (NASDAQ: ADBE) stock slipped over 9% on Wednesday to close the day trading at $422.90. The fall happened after the digital mega-company reported its Q1 2022 revenue. However, the segment that indicated the impact of war in Ukraine changed the whole viewpoint of the report.

Notably, Adobe said that it expects a revenue impact of $75 million for the fiscal year 2022, caused by the Russia-Ukraine war.

“On March 4, 2022, Adobe announced a halt of all new sales of Adobe products and services in Russia and Belarus. In addition, today Adobe is reducing its digital media ARR balance by $75 million, which represents all ARR for existing businesses in Russia and Belarus,” the company noted.

Additionally, the company indicated that it will continue to provide digital media services in Ukraine. However, the company reduced ARR by an additional $12 million, which represents its entire Digital Media business in Ukraine.

Consequently, different analysts including Deutsche Bank and Piper Sandler lowered their ADBE price targets. Notably, Deutsche Bank analysts adjusted their price target to $575 from $660, and Piper Sandler to $545 from $600.

Adobe Q1 2022 Financial Highlights

For Q1 of the fiscal year 2022, Adobe reported revenue of 4.26 billion. The figure represented a growth of 9% year over year.

“Adobe achieved record Q1 revenue as creative cloud, document cloud, and experience cloud continue to be pivotal in driving the digital economy,” said Shantanu Narayen Chairman and CEO Adobe. “Adobe is committed to empowering individuals, transforming businesses, and connecting communities.”

Worth noting, the Digital Media Annualized Recurring Revenue (ARR) increased by $418 million QoQ to $12.57 billion. During the quarter, Adobe successfully repurchased approximately 3.8 million shares.

ADBE Stock and Forward-Looking Statements

ADBE stock market has been in losses for the past year. According to market analytics provided by MarketWatch, ADBE shares are down approximately 6.3% and 25% in the past year and YTD respectively through Wednesday.

As of today, the company has a reported market valuation of approximately $220.33 billion. In the past 52 weeks, ADBE shares have ranged between $407.94 and $699.54.  Of note, the company received an average rating of Over from 32 ratings.

With a strong cash flow, the company intends to do intense marketing to have a competitive edge. In a note to investors, Adobe’s Executive Vice President and CFO said that “Adobe’s Q1 results reflect the company’s strong execution and resilience through unprecedented circumstances.” “Our momentum, product innovation, and immense market opportunity positions us for success in 2022 and beyond,” added he.

Source: www.coinspeaker.com

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