Adobe (ADBE) Q4 earnings report 2023

Adobe shares dropped more than 6% in extended trading Wednesday after the software maker posted a lighter-than-expected forecast for 2024.

Here’s how the company did, compared to consensus estimates from LSEG, formerly known as Refinitiv:

• Earnings per share: $4.27, adjusted vs. $4.14 expected
• Revenue: $5.05 billion vs. $5.03 billion expected

Revenue grew almost 12% from a year ago in the fiscal fourth quarter, which ended Dec. 1, according to a statement. Net income increased 26% to $1.48 billion, or $3.23 per share, up from $1.18 billion, or $2.53 per share, in the year-ago quarter.

While results for the latest quarters topped estimates, Adobe’s guidance for the new fiscal year disappointed Wall Street.

Adobe called for fiscal 2024 earnings per share of $17.60 to $18 on $ $21.3 billion to $21.5 billion in revenue. Analysts polled by LSEG had expected $18 in adjusted earnings per share and $21.73 billion in revenue.

Executives continue to look carefully at spending, Anil Chakravarthy, president of Adobe’s experience business that includes marketing software, said on a conference call with analysts.

During the quarter, Adobe’s Firefly generative artificial intelligence features became available in the Photoshop and Illustrator programs for those who subscribe to the Creative Cloud software bundle. An enterprise version of the Firefly web app that can create images based on a few words of human input also became available.

Adobe remains focused on closing the $20 billion Figma acquisition it announced in September 2022. The company said it disagrees with findings from regulators in the European Commission and the U.K. and that it’s responding to regulators. The U.S. Department of Justice has also been looking into the planned deal.

“While the DOJ does not have a formal timeline to decide whether to bring a complaint, we expect a decision soon,” Adobe CEO Shantanu Narayen said.

The guidance does not factor in impact from…