Strong competition is “destroying” the value of the Adobe company
Photoshop maker Adobe reported quarterly results below analysts’ expectations, signaling strong competition and weak demand for its visual design tools with integrated artificial intelligence options.
The company’s shares fell 9.2 percent in extended trading in the US, but over the past year they have registered a growth of 5.96 percent.
High interest rates and a tough economy have led businesses and individuals to focus on cutting costs, putting pressure on Adobe’s development, among other things, Bloomberg writes.
Founded in 1982, Adobe is one of the largest suppliers of software for visual and video artists, which includes packages such as Acrobat, Photoshop or Premiere Pro.
The San Jose, Calif.-based company also faces competition from startups like Stability AI and Midjourney, which provide similar AI services — including generating images from text queries.
Adobe expects fourth-quarter revenue of between $5.5 billion and $5.55 billion, compared with LSEG estimates of $5.61 billion, and quarterly earnings of between $4.63 and $4.68 per share (EPS ), compared to earlier estimates of $4.67 per share.
Adobe will launch a new AI-powered generative video creation tool called Adobe Firefly Video Model in a limited edition later this year, which is expected to capture the attention of creative professionals.
Revenue for the quarter ended Aug. 30 was $5.41 billion. Operating expenses for the third quarter were $2.86 billion, compared with $2.61 billion a year earlier.
Source: Agencies
Photo: Pixabay
Source: bizlife.rs
