Adobe is having a record week: beating profit estimates, launching Adobe Advertising Cloud TV, and utilizing Adobe Sensei’s sophisticated A.I. machine learning. It has been a busy week, and that can only be good news for us.
On Tuesday, June 20th, Adobe reported better-than-expected profit for the quarter, beating not only their own estimates, but analyst estimates as well. Adobe’s Digital Media revenue (Creative Cloud) brought in a record $1.21 billion in the second quarter, beating estimates that were placed at $1.17 billion. This boost in revenue is thanks to a 29% increase in sales for Creative Cloud, proving that Adobe’s high stakes bet on subscription plans paid off in a big way. Their stock surged as a result of their report, surging 4% to a record $146.
With Adobe’s tremendous success in the cloud solutions space, as well as its heavy investment in machine learning (more on that later), it’s no wonder that they’re doubling down on cloud services. On Monday, June 19th, Adobe announced Adobe Advertising Cloud TV, which is poised to impact TV advertising in a big way. Adobe’s platform will enable buying ads in all forms, reaching over 95% of households in America. In a recent study, Adobe found that less than a third of Americans believed that the ads they saw on television were relevant to their interests. With Adobe’s ability to leverage data from their Adobe Analytics Cloud, along with the machine learning capabilities that they have touted with Adobe Sensei, television advertising may begin to showcase data-driven content that appeals to audiences in a manner that has not yet been accomplished.
As if this month was not impressive enough for Adobe, their new search tools for Adobe Stock, also powered by Adobe Sensei, has the potential to truly revolutionize the stock and asset industry. In this age of web-ruled everything, being able to locate quality assets efficiently is critical. With Adobe’s new Aesthetic Filters, users can look for an asset by searching with an image, then fine-tune their results by specifying the depth of field they want, presence of people in the images, and even how colorful (or what color) the images are. Adobe Stock currently boasts over 90 million assets, and is continuing to build their extensive library with the addition of collections from Reuters, USA TODAY Sports, Stocksy, and more to come.
When Adobe had announced Adobe Sensei in 2016, it was a rather daunting framework with many lofty promises. In the days to come, only time will tell how Adobe will continue to evolve and integrate machine learning into their ecosystem.
Sources: Adobe I | II | III | Reuters