Adobe (NASDAQ:ADBE) shares rose after the company lifted its profit forecast for fiscal 2023 and announced its quarterly results beat Wall Street estimates. It increased income and net new recurring revenue projections for its digital media business for the full year.
Adobe achieved revenue of $4.66 billion in its first quarter of fiscal year 2023, which represents 9% year-over-year growth or 13% in constant currency. Diluted earnings per share was $2.71 on a GAAP basis and $3.80 on a non-GAAP basis.
GAAP operating income in the first quarter was $1.59 billion and non-GAAP operating income was $2.13 billion. GAAP net income was $1.25 billion and non-GAAP net income was $1.75 billion. Cash flows from operations were $1.69 billion.
According to Shantanu Narayen, “Adobe drove record Q1 revenue and we are raising our annual targets based on the tremendous market opportunity and continued confidence in our execution. Creative Cloud, Document Cloud and Experience Cloud are mission-critical in fueling the global digital economy.”
Adobe is providing second quarter targets and updated fiscal year 2023 targets for Digital Media net new ARR and earnings per share. These targets factor in current expectations for the macroeconomic and foreign exchange environments.
Digital Media net new ARR is pegged at a loss of $1.7 billion, while Earnings per Share are expected to come in anywhere from $10.85 to $11.15.
Adobe shares zoomed in the first hour on Thursday by $13.01, or 3.9%, to $346.62.