Abobe made $934M in Q1 of fiscal 2022 from Digital Media

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Results for Adobe’s ADBE first quarter of fiscal 2022 were anticipated to reflect growth in the Digital Media division. Although, it is believed that strong momentum across Adobe Creative Cloud and Document Cloud contributed significantly to the top line increase for the Digital Media segment in the yet-to-be-reported quarter.

In the upcoming reporting quarter, we anticipate the company’s ongoing efforts to improve its content management skills. As a result, it will continue to fuel development in the Digital Media segment.

Notably, the segment under consideration earned revenues of USD 3.01 billion in the fourth quarter of fiscal 2021. Thus, an increase of 21% over the same period the previous year.

Adobe anticipates digital media revenue to increase by 8% for the first quarter of fiscal 2022. The $3.09 billion Zacks Consensus Estimate for Digital Media Revenues for the Review Quarter denotes an 8.4% increase from the reported amount for the Comparative Quarter.

Factors to Think About

In the yet-to-be-reported quarter, strong momentum across Adobe Creative Cloud and Document Cloud is said to have fueled top-line growth for the Digital Media business.

A strong tailwind is behind the need for new content types driven by the Metaverse platform and the expanding popularity of 3D. It is expected that significant growth in mobile applications contributed significantly to the rise in revenue for Creative Cloud.

Adobe’s acquisition of Frame.io is a cloud-based video review and collaboration platform. The incorporation of its solutions with Adobe Photoshop, Adobe Premier Pro, and other Creative Cloud products can boost growth.

The business introduced Creative Cloud Express, a unified online and mobile solution, in the first quarter of the current fiscal year. It offers cutting-edge capabilities for producing and disseminating rich multimedia content. This should have enhanced Creative Cloud’s functionality.

Document Cloud is expected to have benefited even more from increased demand for Adobe Scan and Acrobat Mobile, as well as expansion of Adobe Sign, during the reported quarter.

Revenues from Document Cloud are expected to reach $575 million in the first quarter of fiscal 2019, up 19.8% from the previously disclosed figure.

All of these factors are estimated to have improved Document Cloud’s annualized recurring revenues (ARR) and Creative ARR. However, these forecasts have increased Digital Media ARR in the following quarter.

However, it is believed that the quarter under review was significantly impacted by high acquisition expenditures.