Adobe Beats Expectations with Strong Quarterly Results Driven by AI Integration – News18

Adobe Inc surpassed Wall Street estimates for quarterly outcomes and forecast on Thursday because the Photoshop maker’s efforts to drive up demand with generative synthetic intelligence (AI) integrations paid off.

Shares of the San Jose, California-based firm rose greater than 5% in aftermarket buying and selling.

Adobe’s spree to spice up AI innovation has been evident by AI options being launched into Acrobat, Express, Photoshop and Premiere Pro.

Earlier this month, Adobe mentioned it will provide Firefly, its synthetic intelligence instrument for producing photographs, to its giant enterprise clients, with monetary indemnity for copyright challenges involving content material made with the instruments.

“Users have now generated over half a billion belongings on the Firefly web site and in Photoshop, making these two of our most profitable beta releases in firm historical past,” Adobe CFO Dan Durn told Reuters.

Analysts see generative AI as both a near- and long-term benefit to both the creative and experience businesses, which could be a catalyst to 2024 revenue growth.

The company forecast current-quarter revenue to be in the range of $4.83 billion to $4.87 billion and raised FY 2023 revenue to between $19.25 billion and $19.35 billion, both on the higher end of analysts’ estimates, according to Refinitiv data.

Focus continues to remain on the impact of generative AI and the pending close of the Figma deal. Adobe has been waiting to finalize its $20 billion buyout deal for the cloud-based designer platform, with management expecting an initial ruling this month.

The deal would give Adobe ownership of a company whose web-based collaborative platform for designs and brainstorming is widely popular among tech firms, including Zoom Video Communications, Airbnb Inc and Coinbase.

Revenue stood at $4.82 billion for the quarter ended June 2, compared to analysts’ estimates of $4.77 billion, while adjusted profit came in at $3.91 per share, above estimates of $3.79 per share.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)