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Here's What Key Metrics Tell Us About Adobe (ADBE) Q4 Earnings
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Adobe Systems (ADBE - Free Report) reported $5.05 billion in revenue for the quarter ended November 2023, representing a year-over-year increase of 11.6%. EPS of $4.27 for the same period compares to $3.60 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $5.01 billion, representing a surprise of +0.82%. The company delivered an EPS surprise of +3.39%, with the consensus EPS estimate being $4.13.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Adobe performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Business Unit - Digital Media - Creative ARR (Annualized Recurring): $12.49 billion versus $12.35 billion estimated by five analysts on average.
Business Unit - Digital Media - Total Digital Media ARR (Annual): $15.33 billion versus the four-analyst average estimate of $15.12 billion.
Business Unit - Digital Media - Document Services ARR (Annual): $2.84 billion versus $2.78 billion estimated by four analysts on average.
Revenue- Digital Experience: $1.27 billion compared to the $1.26 billion average estimate based on seven analysts.
Revenue- Publishing and Advertising: $66 million versus $63.70 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -12% change.
Revenue- Digital Media: $3.72 billion compared to the $3.68 billion average estimate based on seven analysts. The reported number represents a change of +12.6% year over year.
Revenue- Digital Media- Creative Cloud: $3 billion versus the five-analyst average estimate of $2.98 billion. The reported number represents a year-over-year change of +11.7%.
Revenue- Digital Media- Document Cloud: $721 million compared to the $698.50 million average estimate based on five analysts. The reported number represents a change of +16.5% year over year.
Revenue- Services and other: $171 million versus $189.64 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -3.9% change.
Digital Experience Subscription Revenue: $1.12 billion versus the three-analyst average estimate of $1.12 billion. The reported number represents a year-over-year change of +11.6%.
Revenue- Products: $114 million versus $121.51 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -0.9% change.
Net Revenue- Subscription: $4.76 billion compared to the $4.68 billion average estimate based on three analysts. The reported number represents a change of +12.6% year over year.
Shares of Adobe have returned +4.9% over the past month versus the Zacks S&P 500 composite's +5.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Here's What Key Metrics Tell Us About Adobe (ADBE) Q4 Earnings
Adobe Systems (ADBE - Free Report) reported $5.05 billion in revenue for the quarter ended November 2023, representing a year-over-year increase of 11.6%. EPS of $4.27 for the same period compares to $3.60 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $5.01 billion, representing a surprise of +0.82%. The company delivered an EPS surprise of +3.39%, with the consensus EPS estimate being $4.13.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Adobe performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Business Unit - Digital Media - Creative ARR (Annualized Recurring): $12.49 billion versus $12.35 billion estimated by five analysts on average.
- Business Unit - Digital Media - Total Digital Media ARR (Annual): $15.33 billion versus the four-analyst average estimate of $15.12 billion.
- Business Unit - Digital Media - Document Services ARR (Annual): $2.84 billion versus $2.78 billion estimated by four analysts on average.
- Revenue- Digital Experience: $1.27 billion compared to the $1.26 billion average estimate based on seven analysts.
- Revenue- Publishing and Advertising: $66 million versus $63.70 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -12% change.
- Revenue- Digital Media: $3.72 billion compared to the $3.68 billion average estimate based on seven analysts. The reported number represents a change of +12.6% year over year.
- Revenue- Digital Media- Creative Cloud: $3 billion versus the five-analyst average estimate of $2.98 billion. The reported number represents a year-over-year change of +11.7%.
- Revenue- Digital Media- Document Cloud: $721 million compared to the $698.50 million average estimate based on five analysts. The reported number represents a change of +16.5% year over year.
- Revenue- Services and other: $171 million versus $189.64 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -3.9% change.
- Digital Experience Subscription Revenue: $1.12 billion versus the three-analyst average estimate of $1.12 billion. The reported number represents a year-over-year change of +11.6%.
- Revenue- Products: $114 million versus $121.51 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -0.9% change.
- Net Revenue- Subscription: $4.76 billion compared to the $4.68 billion average estimate based on three analysts. The reported number represents a change of +12.6% year over year.
View all Key Company Metrics for Adobe here>>>Shares of Adobe have returned +4.9% over the past month versus the Zacks S&P 500 composite's +5.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.