Adobe disappoints its expectations, affected by the end of sales to Russia

Adobe disappoints its expectations, affected by the end of sales to Russia

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Adobe, which just released its first-quarter results, has assessed the impact of the war in Ukraine on its sales. On March 4, the publisher announced the discontinuation of all new sales of Adobe products and services in Russia and Belarus. As a result, it reviews the annual recurring revenue (ARR) balance by subtracting 75 million ARR from the remaining operations in these two countries. Adobe continues its activities in Ukraine but due to the conflict expects to reduce the ARR by 12 million. These revisions are expected to result in a shortfall of $75 million in fiscal year 2022.

Adobe reported better-than-expected first-quarter results with revenue up 9% to $4.26 billion and net income of $1.27 billion or earnings per share (EPS) of $3.37. The consensus was 4.23 billion and earnings per share were $3.34.

“Adobe achieved record first-quarter profits as Creative Cloud, Document Cloud and Experience Cloud continue to be instrumental in driving the digital economy.”Shantanu Narain, CEO of Adobe, said in a statement.

On the other hand, second-quarter results should be below expectations. The company expects earnings per share of $3.30 and revenue of $4.34 billion. Analysts expect earnings per share of $3.35 and revenue of $4.4 billion. The group also expects $440 million in new annual digital recurring revenue. The day after publication, the title in the session was down about 10%.

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