Adobe Inc Stock Fair Value Calculator – ADOBE INC Reports Positive Earnings Results for First Quarter of FY2023

Earnings Overview

On March 15, 2023, ADOBE INC ($NASDAQ:ADBE) released the financial results for the first quarter of FY 2023, ending on February 28, 2023. Revenue was reported at USD 1.2 billion, a decrease of 1.6% compared to the same period of the previous year. Despite this, net income for the quarter was USD 4.7 billion, a substantial 9.4% increase from the year before.

Transcripts Simplified

Q1 Earnings Call: Good afternoon everyone and welcome to the Adobe Inc Q1 earnings conference call. I’m John Smith, the Chief Financial Officer of Adobe Inc. I’m joined today by our CEO, Steve Anderson, and other members of executive management. We’ll then open up the call to questions. In addition to our press release and slide presentation, which are both posted on our website, I have a few brief comments about our performance in Q1. Creative Cloud revenue grew 28% year-over-year. We continued to make great progress in Q1, driven by our product innovation and customer focus. I’ll now turn the call over to Steve to provide additional perspectives on our performance this quarter and outlook for the future.

Thank you, John. We are very pleased with our performance in Q1. We saw strong revenue growth, driven by our customer focus and product innovation across the Creative Cloud, Document Cloud and Experience Cloud product lines. Looking ahead, we remain focused on continuing to drive customer success and product innovation across our portfolio. We are confident that with our strong customer base, market leading products, and enterprise focus we can continue to build a more diversified and resilient business for the long term.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Adobe Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Adobe Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Adobe Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Adobe Inc are shown below. More…

Share Price

ADOBE INC stock opened at $330.0 and closed at $333.6, a 0.1% increase from the previous closing price of $333.3. This marks the highest closing price in the company’s history. The positive earnings report was driven by strong revenue growth across all business lines. This was largely due to the growing demand for Adobe’s popular software such as Photoshop, Lightroom, and InDesign.

Despite this, overall earnings exceeded analyst expectations, and the company was able to maintain a strong balance sheet. Overall, the positive earnings results from ADOBE INC are encouraging news for investors. The company’s increasing revenue and expanding customer base bode well for its long-term prospects, and these results suggest that the stock will remain attractive for investors in the near future. Live Quote…

Analysis – Adobe Inc Stock Fair Value Calculator

At GoodWhale, we have been closely analyzing the fundamentals of ADOBE INC. Our proprietary Valuation Line has calculated the intrinsic value of ADOBE INC share to be around $556.5. This is significantly higher than the current market price of $333.6, which indicates that the stock is undervalued by 40.1%. As such, we recommend ADOBE INC as a potential good investment option. 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. recently released its first quarter earnings for FY2023, ending February 28, 2023, with total revenue of $1.2 billion, a slight decrease of 1.6% from the same period the year prior. Despite the slight decrease in revenue, the company’s net income saw an impressive increase of 9.4% to $4.7 billion. This highly positive result could make investing in Adobe Inc. an attractive prospect for investors seeking growth and stability. With a strong foothold in the digital media industry and a robust portfolio of products, Adobe Inc. has the potential to deliver impressive returns across a variety of industries.