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Adobe to Report Q1 Earnings Today – What Do Website Visits Indicate?
Stock Analysis & Ideas

Adobe to Report Q1 Earnings Today – What Do Website Visits Indicate?

Adobe Inc. (ADBE) will reveal its financial results for the first quarter after the market closes today. The company is one of the largest software companies in the world and is known for its multimedia and creative software products and services.

For a software behemoth like Adobe, tracking user visits to its website is critical for estimating demand for its product offerings. As Adobe makes the majority of its money from digital service subscriptions, more visitors might lead to more subscriptions, which would translate to increased revenue.

To obtain a better understanding of Adobe’s current status, we used TipRanks’ new online tool to dig into the company’s monthly user numbers ahead of the fiscal Q1 print.

Website Visit Stats Reflect a Downward Trend

We discovered through the tool that overall projected visits to the Adobe website decreased in fiscal Q1. In particular, the total projected worldwide visits to adobe.com decreased by 0.20% sequentially from the fiscal fourth quarter.

Image shows Website Traffic for Adobe (ADBE)

The drop in monthly visits implies that the number of Adobe platform subscribers fell in the first quarter. This could lower the company’s subscription revenues for the first quarter to some extent.

In addition, on a year-over-year basis, website visits to adobe.com dropped 18.5% to 706.8 million in fiscal Q1.

Wall Street’s Take

Wall Street analysts are optimistic on Adobe, with a Strong Buy consensus rating based on 10 Buys and two Holds. The average ADBE stock prediction of $586.93 implies upside potential of approximately 29.4% to current levels for this stock.

Bottom Line

Though website traffic data suggests slower growth in the first quarter, Adobe’s creative suite, which includes industry-leading products like Photoshop, Illustrator, and After Effects, is widely recognized as a must-have for nearly any form of digital creation. Furthermore, its extensive suite can attract new members and earn more revenue from each subscriber.

As a result, investors will be watching with bated breath to see if the company can keep its momentum going into 2022.

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