Adobe CFO exit fans strategy worries despite outlook raise
Adobe logo is seen on smartphone in this illustration taken June 13, 2022. REUTERS/Dado Ruvic/Illustration
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June 11 : Adobe on Thursday announced the exit of CFO Dan Durn, adding to concerns about the Photoshop maker’s strategy to navigate the crowded design industry, though the company raised its annual revenue and profit forecasts.
Durn’s exit comes only three months after long-time CEO Shantanu Narayen decided to step down, leaving the company’s trajectory uncertain till a new successor is appointed. Adobe shares fell 5 per cent in extended trading.
Steve Day, senior vice president of corporate finance, will serve as interim CFO from June 15, the company said.
“Not what ADBE needs… maybe they have a CEO candidate in place/waiting on bringing in their own people. I would expect more senior management to depart with a new CEO,” said Stephanie Link, chief investment strategist at Hightower Advisors.
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Adobe now expects revenue of between $26.5 billion and $26.6 billion for fiscal 2026, up from its earlier forecast of between $25.9 billion and $26.1 billion.
The forecast reflects growing demand for Adobe’s AI products and tools, which have been central to the strategy of extending its lead in a market where smaller firms are rapidly gaining share.
Despite establishing an early lead in the industry, Adobe’s dominance is now threatened by companies such as Figma and Canva. Both have rapidly adopted AI to boost the appeal of their products.
Adobe said AI-first annual recurring revenue tripled and exceeded $500 million at the end of the second quarter.
Adobe shares have fallen over 37 per cent so far this year, as investors weigh the impact of AI design tools launched by AI labs that many worry can upend the software design industry.
Adobe now expects annual adjusted earnings per share of $24.35 to $24.45, up from its prior view of $23.30 to $23.50.
Second-quarter revenue also beat Wall Street expectations.
Separately on Thursday, custom AI chip maker Marvell Technology appointed Durn as its CFO.
Source: Reuters
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