Adobe Inc Reports Third Quarter Earnings Results for Fiscal Year 2023
September 17, 2023
🌥️Earnings Overview
ADOBE INC ($NASDAQ:ADBE) reported their third quarter earnings results for fiscal year 2023, which was concluded on August 31 2023. Total revenue was USD 4.9 billion, showing a 10.4% increase from the same quarter the previous year. Net income was reported at USD 1.4 billion, signifying a 22.8% rise year over year.
Stock Price
The stock opened the day at $551.1 and closed at $552.2, down by only 0.3% from its prior closing price of 553.6. This was a sign that investors were pleased with the latest earnings report. This was driven by strong growth in their cloud offerings, such as Creative Cloud and Document Cloud. Overall, the third quarter earnings report from Adobe Inc showed strong financial growth for the company.
Investors responded positively to the report and the stock closed slightly down from its previous day’s closing price. With this trend expected to continue in the coming quarters, Adobe Inc is well positioned for success in the future. 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 analyzed the fundamentals of ADOBE INC and found that it had a high health score of 9/10 with regard to its cashflows and debt, indicating that the company is capable to sustain future operations in times of crisis. Moreover, our Star Chart analysis revealed that ADOBE INC is strong in growth, profitability, medium in asset and weak in dividend. Based on this information, we classified 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 strong fundamentals, investors with a long-term investment horizon may find this company an attractive option. Investors seeking stable earnings growth and value appreciation potential may find ADOBE INC especially attractive. Furthermore, investors looking for higher yields may be disappointed as the company exhibits weak dividend growth. However, given its strong fundamentals, the company may offer capital gains opportunities. 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‘s stock performance has been strong in the third quarter of fiscal year 2023, with total revenue of USD 4.9 billion, up 10.4% from the same period last year. Net income was up 22.8% year over year to USD 1.4 billion, demonstrating a healthy bottom line performance. The growth in both revenue and net income are indicative of a healthy company performance, which is why investors should consider buying into the stock. Additionally, Adobe Inc’s strong financial performance suggests further upside potential in the coming quarters, making it an attractive investment opportunity for the long-term.
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