![]() ![]() ![]() Rob Oliver from Baird Equity Research downgraded the stock to ‘neutral’ from ‘outperform’. However, he noted that investors will have increased concerns regarding the organic growth trajectory and durability of high industry margins, which will likely weigh on the shares in the near term. Weiss believes Figma will be a new asset for the group that will support longer-term growth in the Digital Media segment. The chart provided to the right from the Fintel financial metrics & ratios page illustrates the company’s rolling revenue and profitability over time with the share price.įollowing the result and news of the acquisition, analyst Keith Weiss from Morgan Stanley reduced his ADBE price target to $337 from $362 prior but remained ‘equal-weight’ rated. In total, at a glance the result came in broadly as expected with fourth quarter revenue guidance being the only disappointment. The revenue guidance came in below the streets’ forecast of around $4.6 billion. The figure was in line with the streets’ forecast.Īdobe provided guidance for the fourth quarter, where it expects earnings per share to stay flat at $3.50 while revenue is expected to grow 2% over the next quarter to $4.52 billion. Total Digital Media annual recurring revenue grew 3.5% from the second quarter, ending at $13.40 billion. The group generated sales of $4.43 billion which was spot on with analyst forecasts of $4.44 billion. The transaction is expected to close in 2023, subject to regulatory clearance and approval by Figma’s stockholders.įigma’s CEO and Co-Founder Dylan Field is expected to stay with the company and lead the group.Īdobe's third quarter results seemed like a beat at the first glance with adjusted earnings per share (EPS) of $3.40 compared to consensus forecasts of around $3.55 per share. The Figma business supposably demanded a significant valuation due to healthy gross margins of 90%, positive operating cash flows and high-growth. ![]() The transaction details highlighted that Figma will have an estimated total addressable market of $16.5 billion by 2025 and that the company expects to surpass $400 million in total annual recurring revenue (ARR). Do you know which under-the-radar stocks the top hedge funds and institutional investors are investing in right now? Click here to find out.Īdditionally, about 6 million restricted stock units (RSU’s) will be granted to Figma’s CEO and employees that will vest over four years.Īdobe expects to fund the acquisition from existing cash on the balance sheet and will use debt if necessary. ![]()
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