Adobe (ADBE) Boosts Digital Experience With Latest Innovations
Adobe ADBE added new innovative features to its Real-Time Customer Data Platform (“CDP”) to strengthen its Digital Experience segment offerings.
The latest innovations include generative playbooks, audience and journey creation, activating with partners, B2B account-based marketing enhancement, leveraging e-commerce for better personalization and consumer data management.
More precisely, the company strives to offer use case templates to marketers through generative playbooks. Further, Adobe Real-Time CDP is now capable of generating multiple variations of rich audience segments by utilizing Sensei GenAI’s capability.
Furthermore, the company has come up with new product enhancements and partner integrations for Real-Time CDP, which support first-party enrichment with partners.
Additionally, Real-Time CDP has been infused with capabilities to help B2B brands boost cross-sell opportunities by getting engaged with new contacts.
Apart from this, the company integrated Real-Time CDP with Adobe Commerce to deliver a personalization experience to brands.
Adobe Inc. Price and Consensus
Adobe Inc. price-consensus-chart | Adobe Inc. Quote
Strengthening Digital Experience Portfolio
Apart from the latest move, the company introduced Sensei GenAI. It is designed to help marketers and other customer experience teams increase their productivity without increasing their workload.
Further, it unveiled its new family of creative generative AI models, namely Adobe Firefly. It helps content creators make several changes to their content and create endless variations of their content seamlessly by letting them use their words, images, audio, vectors and videos.
With these endeavors, the company added strength to its Adobe Experience Cloud offerings, thus bolstering its Digital Experience segment.
Customer Base Expansion
The latest move is likely to bolster the adoption rate of Real-Time CDP, which is already being used by several brands like Chipotle, Novo Nordisk, Qualcomm, Thermo Fisher Scientific and Meta, to name a few.
The company’s growing efforts to boost its Digital Experience segment with product innovations are expected to continue aiding it in winning customers.
Recently, Adobe Experience Cloud was selected by General Motors. The latter intends to leverage Real-Time CDP, Adobe Journey Optimizer and Customer Journey Analytics for real-time customer insights and experience orchestration.
Further, Petco recently integrated Adobe Experience Cloud enterprise applications to enhance consumer engagement.
Additionally, Qualcomm selected Adobe Experience Cloud to deliver personalized experiences, gain deeper insights and ensure relevant content and services across the entire customer journey.
The growing clientele is likely to contribute to the performance of the Digital Experience segment, which will benefit Adobe’s overall performance. This is likely to instill investors’ optimism in the stock in the near term.
In the first quarter of fiscal 2023, the segment generated revenues of $1.18 billion, up 11% on a year-over-year basis. Experience Cloud subscription revenues were $1.04 billion, which rose 12% from the year-ago quarter.
For the second quarter of fiscal 2023, Adobe expects the Digital Experience segment’s revenues between $1.21 and $1.23 billion. Also, the subscription revenues of Digital Experience are anticipated in the band of $1.06-$1.08 billion.
Coming to the price performance, ADBE has lost 19.9% in the past year compared with the industry’s decline of 10.8%.
Zacks Rank & Other Stocks to Consider
Currently, Adobe carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Arista Networks ANET, Salesforce CRM and Analog Devices ADI. While Arista Networks and Salesforce each sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have rallied 15.8% in the past year. The long-term earnings growth rate for ANET is currently projected at 14.17%.
Salesforce shares have declined 13.1% in the past year. CRM’s long-term earnings growth rate is currently projected at 16.75%.
Analog Devices shares have risen 7.9% in the past year. The long-term earnings growth rate for ADI is currently projected at 10.5%.
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