Adobe Inc Passes Estimation From Wall Street, Triggered For Implementation Of AI

Shares of Adobe, California, rose more than 5% in post-bursed trading. (photo: dock. pexels)

JAKARTA - Adobe shares, a Photoshop maker based in San Jose, California, rose more than 5% in post-exchange trading.

Adobe's efforts to increase demand through the integration of generative artificial intelligence (AI) paid off, as seen from its quarterly results that exceeded Wall Street's estimation.

Adobe has presented AI features into Acrobat, Express, Photoshop, and Premiere Pro as part of their efforts to increase AI innovations.

Earlier this month, Adobe announced that it would offer Firefly, an artificial intelligence tool to produce images, to their big business customers, with legal protection guarantees related to copyright challenges that involve content created with the tool.

"Users have now made more than half a billion assets on Firefly's website and in Photoshop, making both of them the most successful beta releases in the history of our company," Adobe's CFO, Dan Duran, told Reuters.

Analysis sees artificial intelligence as short-term and long-term benefits for creative businesses and experiences, which can drive revenue growth until 2024.

The company projects revenue for the quarter to be in the range of 4.83 billion to 4.87 billion US dollars and raises the projected revenue of the 2023 FY to between 19.25 billion and 19.35 billion US dollars, both at the top of analyst estimates, according to Refinitiv data.

Stay focused on the impact of generative artificial intelligence and the settlement of the Figma deal awaiting approval. Adobe has been waiting to finalize a 20 billion acquisition deal (Rp290 trillion) for a cloud-based design platform, with management expecting a decision earlier this month.

The deal will give Adobe ownership of companies whose web-based collaborative platforms for design and brainstorming are very popular among technology companies, including Zoom Video Communications, Airbnb Inc, and Coinbase.

Adobe's revenue reached $4.82 billion for the quarter ending on June 2, compared to analysts' estimates of $4.77 billion, while adjusted earnings stood at $3.91 per share, exceeding an estimated $3.79 per share.