Adobe Inc. (ADBE) – Expect unmatched growth and innovation

Adobe Inc. (ADBE) (Q2FY23)

Stock Performance: Adobe’s stock price increased by ~53% in the past 1- year. The stock has a 52-week high of $569.98 and its 52-week low is $274.73. The stock price rose in the past 3 months, yielding 29% returns due to Q2’s strong financial performance surpassing guidance.

Quarter Performance: Adobe achieved revenue of $4.82bn in its Q2FY23, which represented 10% Y/Y growth or 13% in cc. Diluted earnings per share were $2.82 on a GAAP basis and $3.91 on a non – GAAP basis. Cash flows from operations were $2.14bn. Remaining Performance Obligations (“RPO”) exiting the quarter were $15.22bn. Adobe repurchased ~2.7mn shares during the quarter.

Guidance: For Q3FY23, ADBE expects revenue of $4.83bn to $4.87bn, Digital Media net new ARR of ~$410mn, Digital Media segment revenue of $3.55bn to $3.57bn, Digital Experience segment revenue of $1.21bn to $1.23bn, Digital Experience subscription revenue of $1.08bn to $1.10bn.

Highlights

Adobe dominates the Application Development sector with a market share of ~60%. Additionally, their Creative Cloud subscription program holds a market share of ~4%. With a wide range of products, Adobe can generate revenue from various industries.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 33

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