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Today at a glance:
๐จ Adobe: Soft AI Monetization
โ๏ธ DocuSign: Billings Acceleration
๐ Stellantis: Searching for Stability
๐ Zscaler: Billings Rebound
๐๏ธ Procore: Leadership Shift
๐ค UiPath: Cautious Guidance
๐ฟ Vail Resorts: Cost Focus
๐ท Rubrik: Accelerating Growth
1. ๐จ 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.