Revenue will be about US$21.4bil in the fiscal year ending in December 2024, the company said. — Bloomberg
NEW YORK: Adobe Inc gave a lukewarm outlook for sales in 2024, disappointing investors who expected new generative artificial intelligence (AI) tools would boost the software company’s results.
Revenue will be about US$21.4bil in the fiscal year ending in December 2024, the company said Wednesday in a statement.
Profit, excluding some items, will be as much as US$18 a share. Analysts, on average, estimated sales of US$21.7bil and adjusted profit of US$18 a share.
Wall Street expects Adobe to be one of the first software giants to benefit from the excitement over generative AI technology, which responds to prompts by producing unique text or images.
In recent months, the company has announced a new version of its AI model, Firefly, raised prices, and focused its October user conference on the technology.
The company cited “significant upsell of our new Firefly” with large customers, according to remarks prepared for a conference call after the results.
However, that enthusiasm was dashed by the annual outlook. Shares declined about 6% in extended trading after closing at US$624.26 in New York.
The stock had jumped 85% this year as “investors appear very comfortable with Adobe’s ability to monetise generative AI,” Keith Weiss, an analyst at Morgan Stanley, wrote ahead of the results. — Bloomberg
