Adobe sees sales rising due to 'massive market opportunity' in the years ahead
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Adobe (NASDAQ:ADBE) shares rose as much as 4% in after-hours trading Tuesday as the digital media software giant reaffirmed its fourth-quarter estimates and gave its first look at where it sees business headed in 2023.
Adobe (ADBE) released its outlook for next year after the close of trading, and as part of a meeting with analysts and investors at its Adobe MAX Creativity Conference. For all of 2023, Adobe (ADBE) said it expects to report earnings, excluding one-time items, of between $15.15 and $15.45 a share, on revenue in a range of $19.1B to $19.3B.
With regards to its main business areas, Adobe (ADBE) estimates digital media revenue of between $13.9B and $14B, and digital experience revenue in a range of $4.93B to $5.03B for 2023.
In a statement, Chief Executive Shantanu Narayen said Adobe's (ADBE) outlook illustrates "a massive market opportunity that will drive Adobe's next decade of growth."
However, the company said its business will see some impact from foreign currency exchange rates, with an anticipated "headwind" of 4% on Adobe's (ADBE) revenue next year. Adobe (ADBE) also said it was taking down its annualized recurring revenue forecast for the year by $700M, to approximately $1.65B.
The company also said it was sticking with its fourth-quarter forecasts. In September, Adobe (ADBE) said it expects to earn about $3.50 a share, excluding one-time items, on revenue of $4.52B for the quarter that ends in December. 
Last month, Adobe (ADBE) said it would acquire software company Figma in a deal valued at $20B. However, many analysts reacted critically to the deal on the grounds of it being too expensive.