Adobe Q1 Profit Rises, Tops Wall Street View
Enterprise software maker Adobe Systems Inc. (ADBE), Thursday reported an increase in profit for the first quarter, as revenues rose reflecting strong cloud revenue growth. The Photoshop maker’s earnings topped Wall Street estimates as did revenues.
San Jose, California-based Adobe’s first-quarter profit rose to $674.24 million or $1.36 per share from $583.08 million or $1.17 per share last year.
Adjusted earnings for the quarter rose to $1.71 per share from $1.55 per share last year. On average, 29 analysts polled by Thomson Reuters expected earnings of $1.62 per share for the quarter. Analysts’ estimates typically exclude special items.
Adobe said its revenue for the quarter rose to $2.60 billion from $2.08 billion last year. Analysts had a consensus revenue estimate of $2.55 billion for the quarter.
Digital Media segment revenue was to $1.78 billion, with Creative revenue growing to 1.49 billion, and Document Cloud achieving record revenue of $282 million, Adobe said in a statement.
“Adobe is fueling the creative economy, driving the paper-to-digital revolution and enabling businesses to transform through our leadership in customer experience management,” said CEO Shantanu Narayen. “Our results in Q1 reflect continued momentum across Adobe Creative Cloud, Document Cloud and Experience Cloud.”
Adobe has been focusing on cloud based subscriptions to boost revenue. Its Creative Cloud software as a service offering gives users access to a range of its software, for a monthly or annual subscription. Customers prefer the cloud route instead of buying individual products and software suites for a licensee fee.
Digital Experience segment revenue was record $743 million.
ADBE closed Thursday’s trading at $267.69, up $3.31 or 1.25% on the Nasdaq. The stock, however, dropped $6.49 or 2.42% in the after-hours trading.
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