The corporate reporting period has is going.
Last week, 3 companies from the S&P 500 index reported.
Today, we are going to look at Adobe’s results. Its revenue is $5.4B. It grew by +2.5% compared to the corresponding value for the previous quarter and exceeded analysts’ expectations by +0.7%. Let’s analyze the company’s business in more detail.
Adobe is a global leader in digital media and digital marketing solutions. The company created and owns the rights to the well-known PDF format, which remains the standard among electronic document management formats around the world.
The company’s revenues increased by +10.2% quarter-on-quarter. The revenue growth was driven by the fight against piracy of its products, as Adobe switches users to paid subscriptions with different price ranges. The company is constantly developing its main Creative Cloud segment, which includes the well-known Photoshop and Illustrator. Also during the reporting period, the company bought back 5.2 million of its own shares.
Manufacturing costs account for 10% of the revenue structure, and gross revenue for 90%. Over the past quarter, the company earned a profit of +$1.6B. And its market capitalization is $238B.
After the publication of the report, Broadcom shares fell by -8.4% to 536 per share. Market participants are dissatisfied with the company’s financial results and reacted negatively to the company’s development prospects.
*surprise – % ratio between actual and expected revenue
**growth – % ratio of the amount of revenue for the last 4 quarters compared to this value calculated for the previous quarter
