TMTB: ADBE First take

ADBE -9%: Q beats but guide misses

Q looked strong with upside to top and bottom line and digital net ARR of $504M above street of $465M and bogeys of $495M.

However, the guide was soft was digital media net new ARR $550M vs street at $575M and revs below at $5.52B vs street at $5.6B

Expectations were a bit heightened heading into the print so not surprising to see stock down. We thought Q4 guide would be better given lapping of px headwinds; we were wrong and we’ll lose our premium on our calls and re-evaluate if something to do there tomorrow morning…

ADBE GUIDANCE: Q4
- Guides revenue $5.50B to $5.55B, EST $5.6B
- Guides ADJ EPS $4.63 to $4.68, EST $4.68
- Guides digital media revenue $4.09B to $4.12B, EST $4.14B
- Guides digital experience revenue $1.36B to $1.38B, EST $1.4B
- Guides Digital Experience subscription revenue $1.23B to $1.25B, EST $1.24B
RESULTS: Q3
- ADJ EPS $4.65 vs. $4.09 y/y, EST $4.53
- Revenue $5.41B, +11% y/y, EST $5.37B
- Digital media revenue $4.00B, +11% y/y, EST $3.9…