Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Adobe's third-quarter fiscal year 2024 performance highlighted a strong trajectory, with substantial year-over-year revenue growth and positive developments across its major product lines.</li><li>Revenue stood at $5.41 billion, marking an 11% increase from the previous year.</li><li>This growth was fueled by the consistent strength in Creative Cloud, Document Cloud, and Experience Cloud.</li></ul>

Adobe's third-quarter fiscal year 2024 performance highlighted a strong trajectory, with substantial year-over-year revenue growth and positive developments across its major product lines.Revenue stood at $5.41 billion, marking an 11% increase from the previous year.This growth was fueled by the consistent strength in Creative Cloud, Document Cloud, and Experience Cloud.

Adobe’s Winning Formula for Double-Digit Growth: Creative Cloud, Document Cloud, and AI! (9/24)

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Adobe announced solid 3QFY24 results, but 4QFY24 guidance was softer than expected: 3QFY24 total revenue was up by 11% YoY to US$5.41bn, in line with consensus estimate; 3QFY24 non-GAAP net income grew by 11% YoY to US$2.08bn, in line with consensus.</li><li>Digital Media net new ARR was US$504mn in 3QFY24 and c.10% ahead of the company guidance, as product innovations drove strength in both Creative and Document Cloud, and a few large deals were closed earlier than expected.</li><li>However, 4QFY24E Digital Media net new ARR guidance of ~US$550mn (-3% YoY) was weaker than expected. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Adobe announced solid 3QFY24 results, but 4QFY24 guidance was softer than expected: 3QFY24 total revenue was up by 11% YoY to US$5.41bn, in line with consensus estimate; 3QFY24 non-GAAP net income grew by 11% YoY to US$2.08bn, in line with consensus.Digital Media net new ARR was US$504mn in 3QFY24 and c.10% ahead of the company guidance, as product innovations drove strength in both Creative and Document Cloud, and a few large deals were closed earlier than expected.However, 4QFY24E Digital Media net new ARR guidance of ~US$550mn (-3% YoY) was weaker than expected. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Adobe (ADBE US) - Solid 3QFY24 Results but Soft Guidance May Weigh on Short-Term Sentiment

<ul><li>Adobe is a leading creativity and document SaaS platform, with &gt;80%/&gt;20% share of the global graphic processing/document processing software market, based on Statista data.</li><li>As of Feb 2024, there were c.3tn Adobe-generated PDFs in the world and over 1.5bn monthly visits to Adobe’s webs and apps.</li><li>The company provides both individuals and enterprises with Creative/Document/Experience Cloud services, which unleash their creativity, accelerate document productivity, and improve digital experience. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Adobe is a leading creativity and document SaaS platform, with &gt;80%/&gt;20% share of the global graphic processing/document processing software market, based on Statista data.As of Feb 2024, there were c.3tn Adobe-generated PDFs in the world and over 1.5bn monthly visits to Adobe’s webs and apps.The company provides both individuals and enterprises with Creative/Document/Experience Cloud services, which unleash their creativity, accelerate document productivity, and improve digital experience. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Adobe (ADBE US) - Entering Generative AI Era

<ul><li>Adobe reported a strong financial performance for the second quarter of fiscal year 2024, with a total revenue of $5.31 billion, representing an 11% year-over-year growth.</li><li>The earnings per share on a GAAP basis was $3.49, and on a non-GAAP basis, it was $4.48, reflecting a 15% year-over-year growth.</li><li>These results indicate Adobe's robust operational execution and the growing demand for its products across all customer segments.</li></ul>

Adobe reported a strong financial performance for the second quarter of fiscal year 2024, with a total revenue of $5.31 billion, representing an 11% year-over-year growth.The earnings per share on a GAAP basis was $3.49, and on a non-GAAP basis, it was $4.48, reflecting a 15% year-over-year growth.These results indicate Adobe's robust operational execution and the growing demand for its products across all customer segments.

Adobe Inc.: Sustainable AI Integration & Generative Tools Development - Major Drivers

Mostly Borrowed Ideas Deep Dives, MBI Deep Dives

MBI Deep Dives

Mostly Borrowed Ideas Deep Dives

MBI is the abbreviation for “Mostly Borrowed Ideas”. Why “Mostly Borrowed Ideas?” As a generalist, I do not have a background in any particular sector. I enjoy navigating across industries, businesses, and countries to learn, understand, and connect the dots. In any case, most ideas and innovations are incremental in nature. Very few of us are smart enough to come up with truly original or groundbreaking ideas. I am Abdullah Al-Rezwan. I was born and brought up in Bangladesh. I went to University of Dhaka for my undergrad and majored in Finance. After working three and half years in Equity Research (Sell-side) covering Financial Sector in Bangladesh, I left Bangladesh to pursue my MBA in the US. I graduated within top 10% of the class from Cornell University's two-year MBA program and worked on the buy-side following my graduation. During my time at Cornell, I won two stock pitch competitions and also became finalists in four other competitions. I thoroughly enjoyed my stint as a generalist in the US large cap team at Madison Investments and covered a wide range of companies from UnitedHealth to Amazon and Boeing before US immigration reality paused my career in investment management. As my work authorization expired, I moved to Canada in January, 2021. Then in early 2022, I was able to return to the US.

<ul><li>Revenue: Digital Media net new ARR $470 Mn ($50 mn higher than guide).</li><li>Gross Margin: Digital Media gross margin remains steady at ~96%, but Digital Experience posted its highest ever gross margin of 67.3% in 2Q'23.</li><li>Cost Structure: 2Q'23 GAAP operating margin was 33.7%, down from 34.9% in 2Q'22.</li></ul>

Revenue: Digital Media net new ARR $470 Mn ($50 mn higher than guide).Gross Margin: Digital Media gross margin remains steady at ~96%, but Digital Experience posted its highest ever gross margin of 67.3% in 2Q'23.Cost Structure: 2Q'23 GAAP operating margin was 33.7%, down from 34.9% in 2Q'22.

United States

Adobe Systems Incorporated develops, markets, and supports computer software products and technologies.  The Company's products allow users to express and use information across all print and electronic media.  Adobe offers a line of application software products, type products, and content for creating, distributing, and managing information.

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Adobe Systems (ADBE US)

Adobe’s Winning Formula for Double-Digit Growth: Creative Cloud, Document Cloud, and AI! (9/24)

Adobe's third-quarter fiscal year 2024 performance highlighted a strong trajectory, with substantial year-over-year revenue growth and positive...

Baptista Research

Adobe (ADBE US) - Solid 3QFY24 Results but Soft Guidance May Weigh on Short-Term Sentiment

We maintain our FY24-26E revenue forecast largely unchanged and our target price of US$645.0 is based on 32x FY25E PE. Maintain BUY.

CMB International

Adobe (ADBE US) - Entering Generative AI Era

Adobe is a leading creativity and document SaaS platform, with >80%/>20% share of the global graphic processing/document processing software...

CMB International

Adobe Inc.: Sustainable AI Integration & Generative Tools Development - Major Drivers

Adobe reported a strong financial performance for the second quarter of fiscal year 2024, with a total revenue of $5.31 billion, representing an...

Baptista Research

Adobe 2Q'23 Update

Revenue: Digital Media net new ARR $470 Mn ($50 mn higher than guide). Gross Margin: Digital Media gross margin remains steady at ~96%, but Digital...

MBI Deep Dives

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