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Adobe is expected to rise sharply on Wall Street after presenting better than expected results last night. The publishing and marketing software company posted net profit of $1.57 billion, or $3.49 per share, in the second quarter ended at the end of May, up from $1.30 billion, or $2.82 per share. dollars per share a year earlier. Excluding exceptional items, earnings per share came to $4.48, beating the Bloomberg consensus by 8 cents.
Revenue rose 10% to $5.31 billion, compared to expectations of $5.29 billion. It increased by 11% at constant exchange rates.
Annualized recurring revenue (ARR), a key group metric, for digital media reached $16.25 billion at the end of the quarter. New annualized recurring revenue for this segment amounted to $487 million. ARR predicts 12-month revenue based on subscriptions purchased.
In the third quarter, the technology firm is targeting adjusted earnings per share of between $4.50 and $4.55 on revenues of between $5.33 and $5.38 billion. Wall Street anticipates $4.47 and $5.40 billion, respectively. It anticipates $460 million in new annualized recurring revenue for its digital media arm. The target market is $435.20 million.
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Beautiful dynamic
According to the latest Truffle 100 ranking, the sector’s total turnover in France jumped 15% last year to cross the 25 billion euro mark. The sector has benefited from an unprecedented growth rate and confirms its recovery after the health crisis. The average annual growth over fifteen years is 12 times higher than that of GDP! Dassault Systèmes retains first place with more than 5.6 billion euros in revenue last year. Cegid, specialist in software for accountants, and the fintech Murex are placed in second and third position with respectively 791 and 711 million euros in turnover. Polarization is one of the characteristics of the sector: the gap in turnover between the 50th and the 100th publisher has increased further in 2022 to reach almost 28 million euros. Performance was improved as the profitability rate (as a percentage of turnover) increased from 9.1% to 10.4%. The outlook is good because artificial intelligence, seen as revolutionary, is expected to drive the market in 2023, as is cybersecurity.