Key facts
- Adobe CFO Dan Durn is departing on Monday, June 15.
- Steve Day will serve as interim CFO.
- Durn will join chipmaker Marvell Technology.
- CEO Shantanu Narayen is also stepping down, with a CEO search underway.
- Adobe's quarterly sales and earnings outlook exceeded analyst expectations.
- Shares fell 6% in extended trading following the announcements.
Adobe Inc. announced that Chief Financial Officer Dan Durn will depart on Monday, June 15, adding to leadership uncertainty as the company continues its search for a new Chief Executive Officer to succeed Shantanu Narayen. Narayen, who has led the software maker for 18 years, announced in March that he would step aside.
Steve Day, senior vice president of corporate finance, will serve as interim CFO until a successor is hired. Durn is set to join chipmaker Marvell Technology Inc. separately. Bloomberg reported earlier this month that David Wadhwani and Anil Chakravarthy, heads of Adobe’s two main business units, are leading in-house candidates for the CEO role, while the company has also hired a search firm to identify external candidates.
The leadership changes overshadowed Adobe’s quarterly results, which surpassed analysts’ expectations. The company reported second-quarter sales of $6.62 billion, a 13% increase, and adjusted earnings of $5.96 a share, both exceeding average estimates. Annual recurring revenue reached $27.1 billion. Adobe also provided an outlook for the August quarter that met or exceeded analyst projections.
Analysts expressed concern over the simultaneous transitions in top leadership roles. "Whenever you have a CEO transition, you do not necessarily want a CFO transition at the same time," said Gil Luria, an analyst at D.A. Davidson & Co. "Clearly investors right now are uneasy with a transition in both of those positions."
Adobe's shares fell about 6% in extended trading after closing at $218.80 in New York. The stock has declined approximately 37% this year. The company, known for its Photoshop software, faces increasing scrutiny over its ability to compete with AI-based products from rivals, though it has integrated AI features across its platform, generating over $500 million in sales from AI-first products.