Even if Adobe Stock Expects Revenues to Rise in the Following Years Owing to a “Huge Market Potential,”

Adobe Stock

Adobe Stock (NASDAQ:ADBE)

Tuesday’s after-hours trading saw a 4% increase in Adobe (NASDAQ:ADBE) stock after the digital media software giant reiterated its fourth-quarter predictions and provided its first look at where it sees the company heading in 2023.

After the market closed and in conjunction with a meeting with analysts and investors at its Adobe MAX Creativity Conference, Adobe announced its prognosis for the following year. Adobe Stock has projected to record profits of between $15.15 and $15.45 per share in 2023, excluding one-time items, on sales of between $19.1B and $19.3B.

Adobe stock projects digital media sales of $13.9 billion to $14 billion and digital experience revenue of $4.93 billion to $5.03 billion for 2023.

Shantanu Narayen, CEO of Adobe, has indicated that the company’s future prospects show “a significant market opportunity that will drive Adobe’s next decade of growth.”

Despite this, Adobe has said it expects a “headwind” of 4% in sales next year due to fluctuations in foreign currency exchange rates. Adobe also said it reduced its annualized recurring revenue expectation by $700M to about $1.65B.

The firm said that it was maintaining its projections for the current quarter. It was reported in September that Adobe anticipates a quarterly profit of about $3.50 per share on sales of $4.52 billion for the quarter ending in December.

Adobe said it would pay $20 billion last month to purchase software firm Figma. However, many experts reacted adversely to the acquisition since they thought it was overpriced.

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