By Dhirendra Tripathi

Investing.com – Adobe stock (NASDAQ:) tumbled 9% Thursday after the company’s forecast for 2022 revenue came in short of expectations.

It expects that revenue will reach $17.9 Billion for the current fiscal year. That’s an increase of over 13%, but a sharp decline from the 23% at which revenue in 2021 grew by to surpass $15B.

Bloomberg estimated that the company would forecast $18.2 Billion in annual revenues.

Adobe expects annual adjusted profit per share to touch $13.70 in the current financial year, higher than 2021’s $12.48 but lower than Bloomberg’s $14.20 estimate.

The quarter ended December 3. There were $14 billion of performance obligations left. This is 23% more than the previous year.

The company’s digital media unit, which includes creative and document cloud products such as Photoshop, PDF, and Illustrator, boomed during the pandemic as millions worked from home and online activities surged. However, all of those products face increased competition from Canva.

Subscriptions drove a 20% increase in fourth-quarter revenue to record $4.11 trillion. While revenue from services declined, product revenue rose insignificantly. The adjusted EPS stood at $3.20.

Digital media segment revenue grew 21%, to $3 billion. Creativity revenue increased 19% to $2.48 Billion. Document Cloud revenues increased 29% to $532 million

Adobe expects revenue to touch $4.23 billion in the ongoing quarter.