Adobe reported first quarter financial results for the fiscal year 2024 ending on March 1. Revenue continued to grow, reaching a new record high of $5.182 billion, an 11% increase compared to the same quarter in the previous year. Net profit according to GAAP accounting standards was $620 million.
CEO of Adobe, Shantanu Narayen, highlighted the strong revenue growth in the past quarter, attributing it to the success of Creative Cloud, Document Cloud, and Experience Cloud, all of which have benefitted from the integration of Generative AI into the company’s products.
David Wadhwani, President of Adobe’s Digital Media group, provided further insights during the earnings call, specifically mentioning the AI model behind OpenAI’s Sora video. Adobe has collaborated with OpenAI on this project, leading to enhancements in Adobe’s own versions of the model as well as contributions from other developers. With the increasing number of content creators, the editing process is expected to become more sophisticated.
In addition to the financial results, Adobe also announced a $25 billion stock buyback plan over a 4-year period until March 2028.
Source: Adobe and CNBC
TLDR: Adobe’s first quarter results for 2024 showed significant revenue growth, with record-breaking earnings, CEO attributes success to AI integration, and company announces a $25 billion stock buyback plan.
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