Adobe Inc. (NASDAQ:ADBE) shares were trading around 9% lower Wednesday afternoon following the company’s reported better-than-expected Q1 results, but slightly lower guidance.

Q1 EPS was $3.37, better than the consensus of $3.34, and revenue of $4.26 billion, compared to the consensus of $4.24 billion. The company reported upside to ARR metrics and margins, and strength across the segments. These positives are offset by signs of business deceleration, soft Q2 guidance, and a higher tax rate which suggests the business is becoming more seasonal and makes 2022 more back end loaded than pre-print. The company expects Q2/2022 EPS of $3.30, below the consensus estimate of $3.35. Quarterly revenue is expected to be $4.34 billion, compared to the consensus estimate of $4.41 billion.

Management did not comment on the full 2022-year outlook, which is typical for the company to not adjust annual guidance early in the fiscal year, and given the uncertainty related to market factors surrounding geopolitical events. The company expects a negative ARR and total revenue impact of $87 million and $75 million in 2022, respectively, from Russia/Ukraine conflict.