Photoshop maker Adobe boosted its fiscal 2024 revenue prediction on Thursday as more businesses and individuals use its AI-powered editing tools amid an easing economy.
image credit: the adobe blog
The San Jose, California-based company’s shares rose 14% in extended trade.
The company now forecasts revenue between $21.40 billion and $21.50 billion, up from $21.30 billion. LSEG says analysts projected $21.46 billion on average.
As creative workers spend more on Adobe’s Premiere Pro, Animate, and After Effects, Adobe’s AI initiatives are paying dividends.
Despite competition from OpenAI, Stability AI, and Midjourney, the business announced in April that Photoshop will include an AI tool to make images.
Photo: Open AI
The company topped second-quarter revenue projections of $5.29 billion with $5.31 billion.
Digital media sales was $3.91 billion, exceeding projections of $3.89 billion.
Adobe’s Firefly AI picture generation tool trains on data it owns at a time of increased data privacy and copyright concerns around AI-created material.
In the quarter, the firm earned $4.48 per share adjusted, compared to $4.39 forecasts.
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