Adobe Inc (NASDAQ:ADBE) stock fell 9.53% (As on Mar 23, 11:27:13 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 22 but gave a disappointing outlook for the current period, suggesting increased competition is making a dent against the company’s prominent design software. In Q1, the company achieved net new Creative ARR of $315 million and revenue of $2.55 billion, which grew 16 percent year-over-year on an adjusted basis. The company continues to see strong demand for Creative Cloud offerings globally across all segments – individuals, SMBs, Teams and enterprises, with key wins at Disney, the FAA, IBM, ING Bank, Kohl’s and the New Mexico Public Education Department. Ending ARR for Document Cloud crossed the $2 billion mark, which represents 29 percent year-overyear growth. In the Digital Media segment, the company achieved 9 percent year-over-year revenue growth in Q1, or 17 percent on an adjusted basis. ADBE exited the quarter with $12.57 billion of Digital Media ARR.  Adobe achieved Document Cloud revenue of $562 million, which represents 17 percent year-over-year growth, or 26 percent on an adjusted basis. Digital Experience segment, in Q1 the company achieved revenue of $1.06 billion, which represents 13 percent year-over-year growth, or 20 percent on an adjusted basis. Digital Experience subscription revenue was $932 million, representing 15 percent year-over-year growth, or 22 percent on an adjusted basis.

ADBE in the first quarter of FY 22 has reported the adjusted earnings per share of $3.37, beating the analysts’ estimates for the adjusted earnings per share of $3.34, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 9.1 percent to $4.26 billion in the first quarter of FY 22, beating the analysts’ estimates for revenue by 0.74%.

Revenue is expected to be about $4.34 billion in the fiscal second quarter, according to the company. On average, analysts projected $4.4 billion, according to data compiled by Bloomberg. Adobe said profit, excluding some items, will be about $3.30 a share. Analysts, on average, estimated $3.35 a share. Meanwhile, ADBE is in the midst of revising prices for its signature creative suite, the first major overhaul since 2017. The new structure will reflect features Adobe has added in the past five years, including new collaboration capabilities. The impact will be seen in revenue in the second half of the fiscal year.