American software firm Adobe Inc. has reduced its annual recurring revenue guidance as the company stopped sales of its products and services in Russia amid the ongoing conflict in Ukraine, the company announced in a filing.

  • Adobe has cut down its digital media ARR by $75 million, representing its existing business in Russia and Belarus, and by an additional $12 million to reflect its businesses in Ukraine despite the continued services in the country.
  • Adobe expects its ARR to be slashed by $87 million, along with an expected revenue impact of $75 million for the fiscal year 2022. Total revenue for the second quarter is expected at $4.34 billion.
  • First-quarter net income rose slightly to $1.266 billion from $1.261 billion recorded in the same quarter last year, bringing the diluted net income per share up to $2.66 from $2.61 apiece.
  • Revenue for the quarter jumped to $4.262 billion from $3.905 billion in 2021. This includes $3.958 billion from subscriptions, $145 million from products, and $159 million from services and other revenue.

Adobe attributed the record revenue in the first quarter to the Creative Cloud, Document Cloud, and Experience Cloud services. ADBE is down 7.94%.