- Adobe called for about 9% growth in the upcoming fiscal year, compared with almost 13% growth in the most recent quarter.
- But the forecast would have been 4% higher if it were not for the stronger U.S. dollar, Adobe said.
- CEO Shantanu Narayen said the company continues to succeed in the current economy.
Adobe shares rose as much as 4% late on Tuesday after the software maker issued guidance for the next fiscal year that fell short of expectations, but blamed some of the shortfall on a stronger dollar and unfavorable foreign exchange rates.
For the 2023 fiscal year, Adobe called for $15.15 to $15.45 in adjusted earnings per share on $19.1 billion to $19.3 billion in revenue, while reaffirming guidance for the 2022 fiscal year, according to a statement. The forecast excludes impact from its planned $20 billion acquisition of design software startup Figma, which is expected to close in 2023. Analysts polled by Refinitiv had expected adjusted earnings of $15.53 per share on $19.82 billion in revenue.
But foreign-exchange rates, which have battered results in technology and other industries, are expected to pull down Adobe's revenue growth by 4 percentage points, the company said. The estimate implies 9% revenue growth for the next fiscal year. In the quarter that ended on Sept. 2, revenue grew 12.7%.
The Creative portion of Adobe, which includes Creative Cloud design software subscriptions that account for 59% of total revenue, enjoyed record customer retention, Dan Durn, the company's finance chief, told analysts last month. In the quarter, 59% of revenue came from the Americas, up from 57% in the year-ago quarter.
"Adobe's continued success in this uncertain macroeconomic environment underscores that our solutions are mission-critical to a growing universe of customers," CEO Shantanu Narayen was quoted as saying in the statement.
The company will probably increase headcount by a lower percentage than it has in the past few years, Narayen told analysts in a meeting at Adobe's Max conference in Los Angeles.