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 recent earnings release reflects a period of consistent growth and innovation, demonstrating both strengths and challenges.</li><li>For the fiscal year 2024, Adobe achieved record revenue of $21.51 billion, marking an 11% year-over-year increase.</li><li>This growth was fueled by robust performance across its business segments, most notably within its Digital Media and Digital Experience divisions.</li></ul>

Adobe's recent earnings release reflects a period of consistent growth and innovation, demonstrating both strengths and challenges.For the fiscal year 2024, Adobe achieved record revenue of $21.51 billion, marking an 11% year-over-year increase.This growth was fueled by robust performance across its business segments, most notably within its Digital Media and Digital Experience divisions.

Adobe Inc.: Strategic Product Tiering & Monetization As A Pivotal Factor Driving Growth! - Major Drivers

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 reported 4QFY24 results: total revenue grew by 11% YoY to US$5.61bn, in line with consensus estimate (US$5.54bn); non-GAAP net income was up by 9% YoY to US$2.13bn, vs. consensus estimate of US$2.08bn.</li><li>Digital Media net new ARR was up 2% YoY to US$578mn in 4QFY24 (+9% YoY in 3QFY24), which raises investor concern on the deceleration trend and the slow pace of monetization of AI applications.</li><li>That said, the company plans to accelerate the monetization of its AI applications by introducing higher-priced and highervalued AI services offerings in FY25. </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 reported 4QFY24 results: total revenue grew by 11% YoY to US$5.61bn, in line with consensus estimate (US$5.54bn); non-GAAP net income was up by 9% YoY to US$2.13bn, vs. consensus estimate of US$2.08bn.Digital Media net new ARR was up 2% YoY to US$578mn in 4QFY24 (+9% YoY in 3QFY24), which raises investor concern on the deceleration trend and the slow pace of monetization of AI applications.That said, the company plans to accelerate the monetization of its AI applications by introducing higher-priced and highervalued AI services offerings in FY25. 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) - AI Adoption on Track, but Slow Pace of Monetization Impacts Sentiment

<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)

<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

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 Inc.: Strategic Product Tiering & Monetization As A Pivotal Factor Driving Growth! - Major Drivers

Adobe's recent earnings release reflects a period of consistent growth and innovation, demonstrating both strengths and challenges. For the fiscal...

Baptista Research

Adobe (ADBE US) - AI Adoption on Track, but Slow Pace of Monetization Impacts Sentiment

We slightly lower our FY25-26E non-GAAP net income forecast by 2%, and trim our target price to US$634.5 based on 32x FY25E non-GAAP PE (previous:...

CMB International

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

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