Bhushan Lodha

Analysing security, coding and cycling

[Bhushan Lodha @CodeAndMarkets]

RT @vineetonx: All the $ADBE posts on X celebrating the "triple beat quarter" failed to point out that:

- Adobe actually lowered its ARR g…

[Vineet Markan @vineetonx]

To everyone who is scratching their head about why $ADBE dropped after such a great print.

- CFO exit
- Margins compressed, both GAAP and non-GAAP
- Non GAAP opex was up 14% (ahead of revenue)
- Freemium strategy may have poor future pay off as model switching costs are very low.

Some other interesting info:

- $ADBE spent 0.88% of their revenue in capex compared to SaaS peers, $CRM spent 1.3% and $NOW's 3.74%

- So freemium and discounted AI usage cause direct operating margin pressure as they reserve higher capacity at hyperscalers

- Both frontier labs are totally focussed on improving coding tasks and making unit economics work. The only heavyweight player investing heavily in media generation is $GOOGL - potentially using their own TPUs

- Generating media is substantially more expensive than generating text based tokens. 1 image costs ~2000 lines of code, 1 video is ~10000 lines of code. So its a massive driver of compute demand

- Which makes it quite compelling for $NVDA to have a deep partnership or even an equity stake

- Personal experience using Adobe products. Acrobat Reader is an exceptional product (especially AI read aloud), far superior than any other document viewer. Adobe Firefly's speech based models are impressive. Adobe Express is mid.

[Bhushan Lodha @CodeAndMarkets]

@ariaradnia I’m interested in this but trying to figure out why partner business (38% of revenue) is slowing down.

[Vineet Markan @vineetonx]

Here is how much incremental ARR $ADBE added during last few quarters.

Q1 2025 - 450M
Q2 2025 - 580M
Q3 2025 - 660M
Q4 2025 - 920M
Q1 2026 - 400M
Q2 2026 - (TBA tomorrow)

This is the the number that decides whether $ADBE goes to $200 or $300 next.

[Bhushan Lodha @CodeAndMarkets]

@swiss_felix @Poan__Sapdi well it has been 5ish years now and there has been no arrest warrants yet.

[Bhushan Lodha @CodeAndMarkets]

$IT pricing stack (per seat per year)

[Bhushan Lodha @CodeAndMarkets]

How $IT acquires seats?

[Bhushan Lodha @CodeAndMarkets]

Gartner $IT lives in IT Services, which became the largest segment in 2024 but is growing at a much more modest pace — and within that, research & advisory is a niche that’s growing slower than the segment average.

[Bhushan Lodha @CodeAndMarkets]

Two fastest-growing segments — Data Centers (+55.8%) & Software (+15.1%) — are where Gartner $IT has zero direct revenue exposure. They benefit $IT only indirectly, because more vendor complexity and more enterprise technology decisions theoretically drives demand for advisory.

[Bhushan Lodha @CodeAndMarkets]

Gartner’s $IT total revenue is roughly $6.1 billion — meaning it represents about 0.3% of its own IT Services category, and less than 0.1% of total IT spending

[Bhushan Lodha @CodeAndMarkets]

@ariaradnia Love the business and the team behind it, but still probably little bit expensive at this price.

[Bhushan Lodha @CodeAndMarkets]

GenAI cannot produce reports of the same quality as those from Gartner

https://t.co/2EEdztrPqD

[Bhushan Lodha @CodeAndMarkets]

Everyone thinks Gartner $IT sells “research”.

That’s not the business.

It sells decision confidence to executives.

[Bhushan Lodha @CodeAndMarkets]

Why does $BRO run at ~30%+ margins while $AJG is ~22–24%?
Same industry. ~800 bps gap.
I dug into it 👇
https://t.co/FmY0Sfif8S

[Bhushan Lodha @CodeAndMarkets]

$AJG spends 56% of revenue on compensation. $BRO spends 49%

Two insurance brokers. Same game. One keeps far more profit. Why???

[Bhushan Lodha @CodeAndMarkets]

@airtelindia Internet in my locality (PIN 422008) goes down every few days for half a day or more — it’s not just me, the whole area is affected. This is disrupting work and daily life. Fix this recurring issue or give us a proper explanation. #AirtelDown

[Bhushan Lodha @CodeAndMarkets]

Check out my latest article: Dockerfile Best Practices https://t.co/P5omeU1tk0 via @LinkedIn

[Bhushan Lodha @CodeAndMarkets]

@Airtel_Presence it is 8th wonder that your company still survives even though you have proven the worst customer service in world. #neverairtel #saynotoairtel

[Bhushan Lodha @CodeAndMarkets]

@Airtel_Presence worst service ever. Since morning I have been chasing your exec for broadband connection but no response from anyone yet