Adobe Q4: Higher-Priced Firefly Subscription Could Be Coming
Summary
- Adobe reported an 11% constant revenue growth and 13% adj. EPS growth in Q4 FY24, with a lower-than-expected guidance for FY25.
- I believe the broad availability of Firefly Video Model in early 2025, and the upcoming higher-priced Firefly subscription, could potentially accelerate its revenue growth.
- Adobe is guiding for around 8.8% revenue growth and around 10.2% adjusted EPS growth for FY25, slightly lower than the market expectations.
- I anticipate Adobe will deliver 10% organic revenue growth, comprising 7% market growth and 3% growth from newly launched AI solutions.
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