Adobe Expert Insight Interview (No Paywall)
Adobe Executive on Innovation, Transformation, and AI Fears
Welcome to Speedwell Memos. Our main website is SpeedwellResearch.com. You can find a directory of our memos here.
Adobe is down over -65% from peak.
But profits are at an all-time high and are growing +12% y/y.
Over the last twelve months, Adobe has generated $24.5bn in revenues, up from ~$13bn in 2020, a 13% CAGR, while expanding operating margins 400bps to 37%. With ~$9bn in EBIT, they are currently trading at 11x earnings with an EV of $98bn.
Adobe has executed quarter after quarter, but investors are concerned that AI is hanging over them like a damocles sword.
How big of a threat is AI really to Adobe though? Couldn’t it actually be a beneficiary?
To find out, we are going to talk to the Former Head of Data Science & Analytics at Adobe. He is intimately familar the companies AI products and helped build them.
We will cover:
How does AI change the competitve landscape?
Will the AI model companies become competitors?
Does AI change the threat of someone like Salesforce moving more into creative work?
What do customers value most when buying Adobe?
Is AI going to become commoditized?
These are critical topics an investor needs to understand in order to gauge the risk/ reward of an investment.
You can sign-up for this conversation for free in the link below!
The webinar will be on May 5th at 12pm EST/ 9am PST. If you miss this time, you can always watch it later after you sign-up.
Sign Up Here
And for more on ADBE, check out this breakdown on them here.
Thank you again to AlphaSense for making this happen!