Adobe raises revenue forecast to $19.35 bn riding on AI

Adobe said it forecast current-quarter revenue to be in the range of $4.83 billion to $4.87 billion and raised FY 2023 revenue to between $19.25 billion and $19.35 billion.
Adobe Firefly generative image generatorAdobe aims to strengthen its business from generative AI that focuses on data, models and interfaces.

Adobe said its generative AI offerings represent additional customer value as well as multiple new monetization opportunities.

First, Firefly, Adobe’s generative AI models, will be available both as a standalone freemium offering for consumers as well as an enterprise offering.

Second, co-pilot generative AI functionality within flagship applications will drive higher ARPUs and retention.

Third, subscription credit-packs will be made available for customers who need to generate greater amounts of content.

Fourth, Adobe will offer developer communities access to Firefly APIs and allow enterprises the ability to create exclusive custom models with their proprietary content.

Finally, the industry partnerships, as well as Firefly, represent exciting new top-of-funnel acquisition opportunities for Express, Creative Cloud and Document Cloud.

“Our rich datasets across creativity, documents and customer experiences enable us to train models on the highest quality assets. We will build foundation models in the categories where we have deep domain expertise, including imaging, vector, video, documents and marketing,” Shantanu Narayen, chair and CEO, Adobe, said.

“We are bringing generative AI to life as a co-pilot across our incredible array of interfaces to deliver magic and productivity gains for a broader set of customers. Since its launch in March, Firefly has captured the imagination of the world with over half a billion generations, and we’re just getting started.”

Adobe has reported revenue of $4.82 billion (+10 percent) for its second quarter fiscal year 2023 ended June 2, 2023.

Adobe has generated revenue of $3.51 billion (+10 percent) from Digital Media segment, $2.85 billion (+9 percent) from Creative business and $659 million (+11 percent) from Document Cloud.

Adobe said Digital Experience segment revenue was $1.22 billion (+12 percent), while Digital Experience subscription revenue was $1.07 billion (+11 percent).