Author: Bu Shuqing
Source: Hard AI
Sora's rapid evolution has put global visual software giant Adobe on edge!
In response, Adobe unveiled more than a dozen new generative AI tools and features at its &#34;Summit 2024&#34; conference on Tuesday, and also revealed a partnership with Microsoft.
However, this did not seem to satisfy Wall Street, as Adobe's US stocks only rose by less than 1% on Tuesday.
The reason behind this may be that Adobe did not introduce any new video features at this summit. This indicates that in the field of video editing, Adobe still lacks competitive products against OpenAI's Sora. Since Sora's debut in early February, Adobe's stock price has dropped by over 10%.
Furthermore, Adobe's new quarterly performance guidance fell short of Wall Street's expectations, adding to its already challenging situation.
<h2>A Boon for Advertisers?</h2>
The highlight among the AI products unveiled by Adobe on Tuesday is GenStudio.
This is an AI office software designed for advertisers, allowing users to create content, manage brand resources, track activities, and streamline workflows without switching between multiple software tools.
GenStudio is said to help users quickly create ads for email, Facebook, Instagram, LinkedIn, and other social media platforms.
Adobe stated that GenStudio is currently in the internal testing phase and is expected to be officially launched later this year, with pricing varying depending on the company.
Adobe has introduced a new generative AI assistant that can answer technical questions, automate tasks, and simulate business outcomes for clients.
Additionally, Adobe has also launched Firefly Services, a generative graphics software for enterprise users.
Firefly Services offers over 20 generative AI and creative API services, allowing enterprises to customize and fine-tune models with their own data, and integrate them with other Adobe products such as PS, Illustrator, and Express, greatly simplifying the creative process.
Among them, the ability to fine-tune models is the biggest highlight of Firefly, allowing enterprises to use their own images and designs as training materials to ensure that the AI-generated content aligns with the brand's tone. Its &#34;structure reference&#34; feature allows users to optimize AI-generated images by referencing other images
Users can seamlessly embed Firefly functionality into their daily tools through the API. The generated content is protected by copyright, consistent with the personal user version of Firefly.
Adobe also announced the addition of generative AI capabilities to its content management system, which can quickly customize personalized versions for different customers based on a single marketing material and can be applied on a large scale. Additionally, Adobe provides content analysis tools that allow users to easily evaluate the effectiveness of AI-generated images and designs.
Furthermore, Adobe announced a partnership with Microsoft to integrate the distinctive features of Adobe Experience Cloud into Microsoft 365, enhancing marketing efficiency.
<h2>Performance Guidance Falls Short of Wall Street Expectations</h2>
Adobe's performance in the capital markets has been lackluster, mainly due to the new quarter's performance guidance falling short of Wall Street expectations.
During an analyst meeting held on Tuesday, Adobe projected quarterly revenue for the period ending in May to be between $52.5 billion and $53 billion, below the consensus forecast of $53.1 billion tracked by data company FactSet. The company expects new digital media net revenue to be $4.4 billion, significantly lower than the previously anticipated $4.698 billion.
Adobe also informed analysts that the company currently expects its total addressable market to reach $293 billion by 2027, higher than the estimated $205 billion in 2024. However, Adobe did not disclose market share forecasts for that time.
Adobe also projects that the potential market for Experience Cloud business will grow from $110 million in 2024 to $155 billion in 2027; the potential market for Document Cloud will increase from $32 billion to $47 billion during the same period.
Additionally, Adobe maintained its revenue forecast for the full fiscal year ending in November 2024 at $21.4 billion. Adobe previously expected non-GAAP earnings per share for this fiscal year to be between $17.60 and $18

ADBE

Adobe has launched more than a dozen new generative AI tools and features in one go, but the focus is on document imaging and office software, without introducing any new video features

Sora's stock price plunges, Adobe responds, market remains dissatisfied?