Adobe reported Q1 FY 2023 results with revenue at $4.66 billion, up 9% y-o-y. Diluted earnings per share were $2.71 on a GAAP basis compared to $2.66 in the same period of the previous year. Note: Adobe's FY'22 ended on December 2, 2022. Q1 FY'23 refers to the quarter that ended on March 3, 2023.
IT software and Services industries suffered from a fall in demand for software and web services at the start of the pandemic as consumers focused solely on essentials, not discretionary products. However, it recovered over the subsequent quarters, with companies having a portfolio of software and services aimed at remote collaboration benefitting the most. Adobe has delivered good results amid the pandemic as there is a shift towards digitalization.
The launch of the ability to create real-time customer profiles to deliver personalized experiences is also likely to give a fillip to the company's revenues. Notably, Adobe's ecosystem of partners (especially Microsoft and SAP by way of the open data alliance and more recently tie-up with Amazon) is likely to deepen Adobe's competitive moat further.
Lastly, the launch of the Adobe Experience Platform has given the ability to create a real-time user profile that can help target users across the different channels they use to engage with Adobe.
Considering that the company processes hundreds of trillions of transactions annually, one can only imagine the scale and efficacy of insights that can be generated and how the effectiveness is likely to get further amplified across Adobe's partner ecosystem.
For additional details, select a driver above or select a division from the interactive Trefis split for Adobe at the top of the page.
Although Adobe is commonly known for its widely distributed free Acrobat PDF Reader, the company makes money primarily by serving "creative professionals" with the software used in image manipulation, animation, web design, and the creation of interactive media content. Adobe's Photoshop, Dreamweaver, Flash, and InDesign products are some of the better-known creative software suites used by graphic designers, production artists, web designers, photographers, animators, publishers, and writers.