Adobe Inc. (ADBE.O) beat Wall Street projections for quarterly earnings and outlook as its generative AI integrations increased demand.
In aftermarket trading, San Jose-based business shares surged almost 5%.
Adobe’s AI push is obvious in Acrobat, Express, Photoshop, and Premiere Pro.
Adobe announced this month that it would offer Firefly, its artificial intelligence tool for image generation, to major businesses with financial indemnity for copyright problems.
“Users have now generated over half a billion assets on the Firefly website and in Photoshop, making these two of our most successful beta releases in company history,” Adobe CFO Dan Durn told Reuters.
Analysts expect generative AI to boost income in 2024 by helping creative and experience industries.
According to Refinitiv data, the company anticipated current-quarter revenue of $4.83 billion to $4.87 billion and FY 2023 revenue of $19.25 billion to $19.35 billion, both above analysts’ projections.
Generative AI and the Figma transaction are still the primary topics. Adobe expects a verdict on its $20 billion cloud-based designer platform purchase this month.
Adobe would acquire a web-based collaborative platform for design and brainstorming used by digital companies like Zoom Video Communications (ZM.O), Airbnb Inc (ABNB.O), and Coinbase (COIN.O).
For the quarter that ended June 2, revenue was $4.82 billion, beating analysts’ projections of $4.77 billion, and adjusted profit was $3.91 per share, beating $3.79 per share.