📊 PRO: This Week in Visuals
ADBE DOCU STLA ZS PCOR PATH MTN RBRK
Welcome to the Saturday PRO edition of How They Make Money.
Over 190,000 subscribers turn to us for business and investment insights.
In case you missed it:
📧 Free members get our Friday articles and sneak peeks.
💌 Premium members receive monthly reports with 200+ companies visualized, one extra weekly article, and access to our archive.
💼 PRO members enjoy everything in Premium, plus our Saturday timely coverage of the most important earnings of the past week.
Today at a glance:
🎨 Adobe: Soft AI Monetization
✍️ DocuSign: Billings Acceleration
🚙 Stellantis: Searching for Stability
🔐 Zscaler: Billings Rebound
🏗️ Procore: Leadership Shift
🤖 UiPath: Cautious Guidance
🎿 Vail Resorts: Cost Focus
🔷 Rubrik: Accelerating Growth
1. 🎨 Adobe: Soft AI Monetization
Adobe's Q1 FY25 revenue grew 10% Y/Y to $5.7 billion ($50 million beat), with adjusted EPS of $5.08 ($0.11 beat). Digital Media ARR rose 13% to $17.6 billion. AI-first products contributed over $125 million in ARR, expected to double by year-end, but remain a small portion of total ARR. The company restructured its reporting into two customer groups:
Business Professionals & Consumers (Acrobat, Adobe Express): Subscription revenue up 15% Y/Y to $1.5 billion.
Creative & Marketing Professionals (Creative Cloud excluding Express, Experience Cloud): Subscription revenue up 10% Y/Y to $3.9 billion.
Despite the Q1 beat, Adobe left FY25 revenue guidance unchanged, falling short of expectations. While analysts see more upside in AI monetization, there is still a lot to prove, alongside concerns over competition from Canva (graphic design) and Figma (workflows). With shares falling post-earnings, investors are looking to next week's Adobe Summit for clarity on AI-driven growth.