Adobe Shares soared as much as 4% late Tuesday after the software maker blamed a weaker dollar and unfavorable currency rates, which fell short of expectations for next fiscal year but blamed some of the deficit.
For fiscal 2023, Adobe has called for adjusted earnings of $15.15 to $15.45 per share on revenue of $19.1 billion to $19.3 billion, while reaffirming guidance for fiscal 2022, according to a statement. The estimate excludes the impact of the $20 billion acquisition of Figma, the design software startup expected to close in 2023. Analysts surveyed by Refinitiv were expecting adjusted earnings per share of $15.53 on revenue of $19.82 billion.
However, the company said exchange rates, which negatively affected results in technology and other industries, are expected to reduce Adobe’s revenue growth by 4 percent. The forecast stands for 9% revenue growth for the next fiscal year. In the quarter ending September. 2, revenue increased 12.7%.
Adobe’s Creative division, which includes Creative Cloud design software subscriptions, which account for 59% of total revenue, enjoyed record customer retention, the company’s chief finance officer Dan Durn told analysts last month. In the quarter, 59% of revenue came from the Americas, which was 57% year-over-year.
Adobe said its forecasts have influenced macroeconomic conditions over the past few months that have brought longer sales cycles for some other tech companies. Qualtrics and can be protected.
“Adobe’s continued success in this uncertain macroeconomic environment underlines the critical importance of our solutions to a growing customer universe,” CEO Shantanu Narayen said in a statement.