Adobe expands generative AI solutions in Acrobat, expecting to boost revenue and earnings

From Nasdaq: 2024-06-19 09:41:00

Adobe is expanding its generative AI solutions with its Firefly model, integrating new features like Generative Fill and Remove Background into Acrobat. The company also added capabilities to allow customers to edit images directly in PDFs and enjoy enhanced meeting transcript features with AI Assistant.

In the second quarter of fiscal 2024, Digital Media revenue for Adobe hit $3.91 billion, a 11% increase year-over-year, with Document Cloud contributing $782 million. These additions are expected to boost Adobe’s overall financial performance, with revenue estimates for 2024 at $21.45 billion and earnings per share at $18.13.

The generative AI market is projected to grow at a CAGR of 36.5% from 2024 to 2030, presenting a significant opportunity for companies like Adobe with its Firefly-powered AI solutions. The recent launch of Firefly Image 2 Model, Firefly Vector Model, and Generative Remove in Lightroom further strengthen Adobe’s position in the market.

However, Adobe faces tough competition in the generative AI space from industry giants like Amazon, Alphabet, and Meta Platforms. These companies have made significant strides in their generative AI capabilities and are seeing strong growth, outperforming Adobe’s performance in the market year-to-date.

Overall, Adobe’s focus on enhancing its generative AI solutions through Firefly models and integrations into its products like Acrobat and Lightroom positions the company well for future growth and success in the evolving AI landscape.



Read more at Nasdaq: Adobe (ADBE) Boosts Acrobat Offerings With Generative AI