In the overnight trading on March 15th, the American multinational computer software company Adobe released its Q1 quarterly financial report. The financial data showed that Adobe's first-quarter revenue and profit both exceeded expectations, with almost all businesses achieving year-on-year growth, especially in digital media and document cloud services.
Adobe's total revenue for the first quarter reached $5.18 billion, an 11% year-on-year increase, surpassing analysts' expected $5.14 billion; Q1 adjusted EPS was $4.48, a 17.89% year-on-year increase, higher than the expected $4.38.
Looking at the segments, digital media revenue was $3.82 billion, a 12% year-on-year increase, exceeding the expected $3.79 billion; creative revenue was $3.07 billion, an 11% year-on-year increase, slightly higher than the expected $3.06 billion; document cloud revenue was $7.5 billion, an 18% year-on-year increase, surpassing the expected $7.276 billion.
Digital experience revenue was $1.29 billion, a 9.3% year-on-year increase, slightly higher than the expected $1.28 billion; subscription revenue was $4.92 billion, a 12% year-on-year increase, exceeding the expected $4.87 billion; product revenue was $1.19 billion, a 0.8% year-on-year decrease, but still higher than the expected $1.145 billion.
Despite the significant growth in various businesses, Adobe provided a performance guidance that fell short of market expectations.
Specifically, Adobe expects second-quarter revenue to be $52.5 billion to $53.0 billion, lower than analysts' expected $53.1 billion; adjusted EPS is $4.35 to $4.40, basically in line with analysts' expected $4.38.
Looking at the segments, digital media revenue is $38.7 billion to $39.0 billion, lower than analysts' expected $39.1 billion; digital experience revenue is $13.1 billion to $13.3 billion, basically in line with analysts' expected $13.3 billion; digital experience subscription revenue is $11.7 billion to $11.9 billion, basically in line with analysts' expected $11.8 billion; the new annualized recurring revenue of digital media is about $4.4 billion, lower than the market's expected $4.591 billion.
In addition, Adobe announced a $25 billion stock repurchase plan.

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Adobe's revenue guidance fell short of expectations, causing its stock price to drop more than 6% in after-hours trading.

Adobe's performance guidance fell short of expectations, causing its stock price to drop more than 10% after hours.