Adobe Inc Reports Impressive Earnings Results for Q3 FY2023
September 19, 2023
☀️Earnings Overview
Adobe Inc ($NASDAQ:ADBE). reported total revenue of USD 4.9 billion for Q3 2023 ending August 31, which was a 10.4% year-on-year increase. Net income for the quarter saw a 22.8% year-on-year rise to USD 1.4 billion.
Stock Price
Adobe Inc reported impressive earnings results for the third quarter of FY2023 on Thursday. The company’s stock opened trading that day at $551.1 and closed at $552.2, a slight dip of 0.3% from the previous day’s closing price of $553.6. Despite this minor decrease, Adobe’s stock still managed to climb over 3% since the beginning of the quarter. Adobe’s outstanding third quarter results were driven by strong demand in its Creative Cloud and Document Cloud, as well as its Digital Media and Digital Experience offerings.
These impressive figures show that Adobe is continuing to be an industry leader in digital media and creativity software solutions. Its strong financial performance reflects its continuing commitment to developing innovative products, as well as its focus on improving customer satisfaction and service quality. With such promising numbers, Adobe looks likely to continue its success in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Adobe Inc. More…
| Total Revenues | Net Income | Net Margin |
| 18.89k | 5.12k | 27.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Adobe Inc. More…
| Operations | Investing | Financing |
| 8.03k | 554 | -5.88k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Adobe Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 29.09k | 13.31k | 34.61 |
Key Ratios Snapshot
Some of the financial key ratios for Adobe Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.9% | 17.1% | 35.1% |
| FCF Margin | ROE | ROA |
| 40.4% | 27.0% | 14.2% |
Analysis
At GoodWhale, we have conducted an analysis of ADOBE INC‘s fundamentals. Our Star Chart shows that ADOBE INC is strong in growth and profitability and medium in asset, however weak in dividend. Further supported by its Health Score of 9/10 which considers its cashflows and debt, this indicates that ADOBE INC is capable to pay off debt and fund future operations. This leads us to classify ADOBE INC as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Given ADOBE INC’s fundamentals, we believe that value and long-term investors may be interested in the company. These type of investors are likely to be attracted to ADOBE INC’s strong growth, yet may not be interested in its weak dividend. More…
Peers
Adobe Inc is a leading software company that offers a range of products, including Creative Cloud, Photoshop, and Acrobat. Its main competitors are Crowd Media Holdings Ltd, Creative Realities Inc, and PT Solusi Sinergi Digital Tbk.
– Crowd Media Holdings Ltd ($ASX:CM8)
Crowd Media Holdings Ltd is a social media and technology company. The company has a market cap of 15.12M as of 2022 and a Return on Equity of -36.63%. The company enables brands and celebrities to connect with their fans and followers through social media. The company also provides technology solutions for social media marketing and management.
– Creative Realities Inc ($NASDAQ:CREX)
Creative Realities, Inc. is a digital customer engagement company that designs, develops, and sells customer engagement solutions in the retail, hospitality, and museums and exhibitions markets worldwide. The company offers a portfolio of customer engagement solutions, including AReality, a cloud-based content management system that provides users with the ability to create, manage, and deliver content to AR/VR devices; and InReality, an AR/VR platform that enables users to create, manage, and deliver AR/VR experiences. It also provides turnkey systems integration services. The company was formerly known as Creative Realities, LLC and changed its name to Creative Realities, Inc. in July 2015. Creative Realities, Inc. was founded in 2010 and is headquartered in New York, New York.
Creative Realities Inc has a market cap of 12.84M as of 2022 and a Return on Equity of 9.18%. The company offers a portfolio of customer engagement solutions, including AReality, a cloud-based content management system that provides users with the ability to create, manage, and deliver content to AR/VR devices; and InReality, an AR/VR platform that enables users to create, manage, and deliver AR/VR experiences. It also provides turnkey systems integration services.
– PT Solusi Sinergi Digital Tbk ($IDX:WIFI)
In 2022, PT Solusi Sinergi Digital Tbk had a market capitalization of 410.06 billion Indonesian rupiah and a return on equity of 23.38%. The company provides digital printing, document management, and other related services in Indonesia.
Summary
ADOBE INC posted impressive financial results for the third quarter of FY2023, with total revenue increasing by 10.4% year-on-year and reported net income rising 22.8% year-on-year. This highlights the company’s strong performance over the past year and its ability to remain competitive in an uncertain global economy. For investors, this is a great sign that ADOBE INC is on track to continue to produce impressive year-on-year growth. Given the company’s solid fundamentals, long-term investors should be confident in ADOBE INC’s ability to deliver consistent returns.
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