Adobe (ADBE) Q4 Earnings | Adobe Stock Going Higher From Here? | Summary and Q&A

TL;DR

Adobe reported Q4 earnings in line with expectations, announced a $20 billion acquisition of Figma, and gave strong guidance for 2023. The stock saw a 2-point swing in after-hours trading, and technical analysis suggests potential for further upside.

Key Insights

• 💪 Adobe's Q4 earnings met expectations and showed strong growth, reflecting the company's consistent revenue streams from monthly subscriptions.
• 🤨 The acquisition of Figma for $20 billion raises concerns about how Adobe will finance the deal and the regulatory challenges it may face.
• 💪 Adobe provided strong guidance for 2023, expecting double-digit revenue growth and exceeding Wall Street's expectations.

Transcript

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Questions & Answers

Q: How did Adobe's Q4 earnings perform compared to Wall Street's expectations?

Adobe's Q4 earnings came in at $4.53 billion, exactly in line with what Wall Street was expecting, showing 10% YoY growth.

Q: What is the significance of Adobe's acquisition of Figma?

Adobe's acquisition of Figma for $20 billion raises concerns about how the company will raise the cash. The acquisition faces regulatory scrutiny, which could prolong the deal's timeline and impact Adobe's future plans.

Q: What guidance did Adobe provide for 2023?

Adobe expects revenues of $19.1 to $19.3 billion in 2023, representing 10% growth YoY. These estimates don't factor in the Figma acquisition or currency headwinds.

Q: How did Adobe's stock perform after the Q4 earnings report?

Adobe's stock saw a 2-point swing in after-hours trading, initially down about 3.3% but eventually up 5.5%. Technical analysis suggests potential for further upside.

Summary & Key Takeaways

• Adobe reported Q4 earnings of $4.53 billion, meeting Wall Street expectations and showing 10% YoY growth.

• Adobe plans to acquire Figma for $20 billion, raising concerns about how the company will raise the cash. The acquisition is facing regulatory scrutiny.

• Adobe gave strong guidance for 2023, expecting revenues of $19.1 to $19.3 billion, representing 10% growth YoY.