Adobe Systems ADBE reported $5.41 billion in revenue for the quarter ended August 2024, representing a year-over-year increase of 10.6%. EPS of $4.65 for the same period compares to $4.09 a year ago.

The reported revenue represents a surprise of +0.79% over the Zacks Consensus Estimate of $5.37 billion. With the consensus EPS estimate being $4.53, the EPS surprise was +2.65%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company’s financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock’s price performance more accurately.

Here is how Adobe performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Business Unit – Digital Media – Creative ARR (Annualized Recurring): $13.45 billion versus the five-analyst average estimate of $13.46 billion.
• Business Unit – Digital Media – Total Digital Media ARR (Annual): $16.76 billion compared to the $16.71 billion average estimate based on four analysts.
• Business Unit – Digital Media – Document Services ARR (Annual): $3.31 billion versus the four-analyst average estimate of $3.25 billion.
• Revenue- Digital Media: $4 billion compared to the $3.97 billion average estimate based on seven analysts. The reported number represents a change of +11.2% year over year.
• Revenue- Publishing and Advertising: $59 million compared to the $60.35 million average estimate based on seven analysts. The reported number represents a change of -11.9% year over year.
• Revenue- Digital Experience: $1.35 billion compared to the $1.34 billion average estimate based on seven analysts. The reported number represents a change of +10.2% year over year.
• Revenue- Digital Media- Creative Cloud: $3.19 billion versus $3.18 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +9.6% change.
• Revenue- Digital Media- Document Cloud: $807 million versus the five-analyst average estimate of $790.70 million. The reported number represents a year-over-year change of +17.8%.
• Revenue- Services and other: $146 million versus $163.69 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -10.4% change.
• Revenue- Products: $82 million compared to the $111.98 million average estimate based on three analysts. The reported number represents a change of -14.6% year over year.
• Digital Experience Subscription Revenue: $1.23 billion compared to the $1.21 billion average estimate based on three analysts. The reported number represents a change of +12.3% year over year.
• Net Revenue- Subscription: $5.18 billion versus $5.09 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.9% change.

Shares of Adobe have returned +7.5% over the past month versus the Zacks S&P 500 composite’s +4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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