Group 1 - The core investment strategy focuses on buying undervalued companies at pivotal moments when their business narrative is shifting towards increased profitability over the next year [1] - The investment portfolio is concentrated, typically consisting of 15 to 20 stocks, with an average holding period of 18 months [1] - The areas of focus include technology and the Great Energy Transition, which encompasses sectors like uranium [1] Group 2 - Michael Wiggins De Oliveira has over 10 years of experience in analyzing companies, particularly in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] - He leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates, weekly webinars, and community support for investors [2] - The Deep Value Returns group is characterized by an active and supportive community that is easily accessible via chat [2]

One number stood out in Adobe's earnings report: AI's annual recurring revenue.Investors are eyeing Adobe's ARR from AI as the company bets big on the technology.CEO Shantanu Narayen says Adobe plans to double its AI ARR by year-end.One number from Adobe's quarterly earnings on Wednesday caught investors' attention: annual recurring revenue from AI. At $125 million from the first quarter this year, it's a small slice of Adobe's $5.71 billion in total quarterly revenue. But analysts were quick to talk about ...

Adobe reported strong Q1 2025 earnings, surpassing both analyst and management expectations with record revenue and cash flow.Software giant Adobe (ADBE 1.14%) reported fiscal 2025 first-quarter earnings on Wednesday, March 12, that topped analysts' consensus expectations. Q1 revenue of $5.71 billion rose 10.2% year over year and bested the estimate of $5.66 billion. Adjusted earnings per share (EPS) in Q1 stood at $5.08, outpacing the anticipated $4.97. This quarter reflected robust growth, driven by stron ...

Adobe (ADBE) Q1 2025 Earnings Call March 12, 2025 05:00 PM ET Company Participants Steven Day - CFO and SVP of Digital Experience Business Unit & Corporate FinanceShantanu Narayen - Chairman & CEODavid Wadhwani - President of Digital Media BusinessAnil Chakravarthy - President of Digital Experience BusinessDan Durn - CFOBrent Thill - Tech Sector Leader, Software/Internet ResearchKash Rangan - Managing DirectorMark Murphy - Executive DirectorSaket Kalia - Managing Director Conference Call Participants Brent ...

Exhibit 99.1 Investor Relations Contact Steve Day Adobe ir@adobe.com FOR IMMEDIATE RELEASE Adobe Delivers Record Q1 Results SAN JOSE, Calif. – March 12, 2025 – Adobe (Nasdaq:ADBE) today reported financial results for its first quarter fiscal year 2025 ended Feb. 28, 2025, reaffirming its FY2025 targets, and previewed its customer-focused strategy ahead of Adobe's Investor Meeting next week at Adobe Summit. "Adobe's success over the next decade will be driven by customer-focused innovation and new offerings ...

Adobe Inc. ADBE will release its first-quarter financial results, after the closing bell, on Wednesday, March 12.Analysts expect the San Jose, California-based company to report quarterly earnings at $4.97 per share, up from $4.48 per share in the year-ago period. Adobe projects quarterly revenue of $5.66 billion, compared to $5.18 billion a year earlier, according to data from Benzinga Pro.On Dec. 11, 2024, Adobe reported fourth-quarter revenue of $5.61 billion, beating the consensus estimate of $5.54 bill ...

Adobe (NASDAQ: ADBE ) shares are down more than 20% over the last six months as the market has become concerned they are not going to be an AI winner. SharesThis account is managed by Noah's Arc Capital Management. Our goal is provide Wall Street level insights to main street investors. Our research focus is mainly on 20th century stocks (old economy) undergoing a 21st century transformation, but occasionally we'll write on companies that help transform 20th century firms as well. We look for innovations in ...

Core Viewpoint - Adobe has shown resilience in a challenging tech sector, but its growth prospects for fiscal 2025 appear weak, raising questions about its AI strategy and overall performance [1][6][10]. Group 1: Performance Overview - Adobe has outperformed other major tech stocks in 2025, despite a significant sell-off in 2024 where it lost over 25% of its value [2][3]. - The company has been growing annual sales in the low double digits and earnings in the low to mid double digits, with fiscal 2025 projections indicating the lowest annual revenue increase and nearly the lowest earnings growth in a decade [7][8]. Group 2: Financial Guidance - The midpoints of fiscal 2025 guidance are $23.43 billion in revenue and $20.35 in adjusted earnings per share (EPS), implying 8.9% year-over-year revenue growth and 10.5% adjusted EPS growth [5][8]. - The revenue growth forecast is significantly lower than historical rates, raising concerns about the effectiveness of Adobe's AI initiatives [6][10]. Group 3: AI Strategy and Market Position - Adobe has developed new AI tools but lacks a clear monetization roadmap compared to competitors like Salesforce, leading to uncertainty about the impact on its bottom line [3][4]. - The company is focusing on attracting new users and measuring engagement with its AI tools rather than increasing prices, which may not satisfy investors looking for immediate returns [9][10]. Group 4: Valuation and Investment Consideration - Despite recent underperformance, Adobe's stock valuation appears reasonable, with a forward price-to-earnings ratio of 21.9 based on adjusted fiscal 2025 EPS [11]. - The company remains a high-margin business generating substantial free cash flow, and its stock buybacks have reduced the share count by 9.7% over the last five years, making it a potential long-term buy for patient investors [10][11][12].

Core Insights - Adobe is a significant player in the creative software, productivity, and digital marketing sectors, operating on a subscription-based business model that is reliable and predictable [1] - The company is currently facing heightened competition from other large enterprises and AI productivity tools, which may impact its market position [1] Company Overview - Adobe's business model is subscription-based, providing a steady revenue stream [1] - The company is recognized for its strong presence in creative software and digital marketing [1] Competitive Landscape - Increased competition is emerging from both established companies and new AI productivity tools, posing challenges to Adobe's market share [1] Valuation - Adobe's valuation is described as very high, indicating potential concerns regarding its market pricing relative to its earnings and growth prospects [1]

Core Viewpoint - Adobe is expected to report its first-quarter fiscal 2025 results on March 12, with projected revenues and earnings showing positive growth trends compared to the previous year [1][2]. Revenue and Earnings Estimates - Adobe projects total revenues between $5.63 billion and $5.68 billion for Q1 fiscal 2025, with non-GAAP earnings expected between $4.95 and $5 per share [2]. - The Zacks Consensus Estimate for revenues is $5.65 billion, indicating a 9.11% growth from the previous year, while the consensus for earnings is $4.97 per share, reflecting a 10.94% increase [3]. Segment Performance - The Digital Media segment is anticipated to generate revenues between $4.17 billion and $4.2 billion, with a consensus estimate of $4.18 billion, suggesting a 9.6% year-over-year growth [5][6]. - Creative Cloud revenues are estimated at $3.33 billion, indicating an 8.5% year-over-year growth, while Document Cloud is expected to reach $855 million, implying a 14% growth [6]. - The Digital Experience segment is projected to generate revenues of $1.38-$1.40 billion, with subscription revenues expected at $1.27-$1.29 billion, reflecting an 8.5% and 10.8% year-over-year growth respectively [7]. Growth Drivers - Adobe's strong Generative AI portfolio and partnerships with major companies like Amazon, Microsoft, and Alphabet are expected to drive top-line growth [8]. - The launch of new AI models, including Firefly Image Model 3 and enhancements to existing tools, has improved user experiences for creative professionals [9]. - The adoption of Adobe Express by businesses and its integration into popular applications has expanded its customer reach [10]. Competitive Landscape - Adobe faces increasing competition in the Generative AI space, particularly from companies like OpenAI, which may impact its monetization efforts [12][22]. - Despite a 20% decline in Adobe shares over the past year, the broader technology sector has seen a return of 11.1% [13]. Valuation Metrics - Adobe's shares are currently trading at a forward 12-month price/sales ratio of 8.16X, which is higher than the sector average of 6.06X, indicating a stretched valuation [16]. Strategic Partnerships - Adobe's expanded partnerships, including the integration of its Experience Platform with Amazon Web Services and collaborations with Google and Microsoft, are key growth catalysts [20].