‘We think it’s an adjacency’

Adobe CEO Shantanu Narayen told CNBC’s Jim Cramer on Wednesday that his company’s proposed acquisition of design software firm Figma would benefit customers, even as regulators are scrutinizing the deal on concern that it may hurt competition.

“We want to take the ability for what Figma has done with respect to creative collaborative software on the web, combine that with what Adobe has done in our creative, and make it even more accessible for others,” Narayen said. “We think it’s an adjacency, we really believe in our merits of the case, but the regulatory environment is challenging.”

Founded in 2012, Figma allows users to collaborate on app and website design. Adobe first announced its plans to acquire the company in September of 2022 in a deal worth about $20 billion.

In late November, U.K. regulators said the acquisition could harm the country’s digital design sector. The U.S. Justice Department is also working on a case to stop the deal, CNBC reported.

Adobe released quarterly earnings on Wednesday and beat Wall Street’s expectations. But the company issued a weaker-than-expected forecast for 2024, sending the stock down almost 5% in after-hours trading.

“We take our guidance very seriously,” Narayen said. “We have tremendous momentum in the business as it relates to digital media ARR, we are guiding to the highest number we have ever guided at the beginning of the year.” ARR stands for annual recurring revenue.