(AOF) – The revenue targets of publishing and marketing software publisher Adobe have left investors wanting more. Adobe posted net profit of $1.4 billion, or $3.05 per share, in the third quarter ended in early September, compared to $1.14 billion, or $2.42 per share, a year earlier. Excluding exceptional items, earnings per share came to $4.09, beating the Bloomberg consensus by 11 cents.
Revenue rose 10% to $4.89 billion, compared to expectations of $4.87 billion. It increased by 13% at constant exchange rates. Annualized recurring revenue (ARR), a key group indicator, for digital media reached 14.60 billion, an increase of $470 million. ARR predicts 12-month revenue based on subscriptions purchased.
In the fourth quarter, the technology firm is targeting adjusted earnings per share of between $4.10 and $4.15 on revenues of between $4.975 billion and $5.025 billion. According to Bloomberg, Wall Street anticipates $4.06 and $5 billion respectively. It anticipates $3.67 billion to $3.70 billion in new annualized recurring revenue for its digital media arm.
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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.