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Software solutions provider Adobe Systems reported better than expected earnings first quarter earnings on Thursday with a marked increase in revenues. However ADBE guided lower than expected for next quarter disappointing investors.

Adobe Changing The World

Adobe Inc NASDAQ: ADBE Reported Earnings After Close Thursday

$1.71 Beat $1.62 EPS And $2.6B Beat $2.55 billion Forecast in Revenue. 

Earnings 

Adobe said during the quarter ended March 1 the company reported record revenue of $2.6 billion on earnings of $1.71 per share, beating analysts polled by FactSet expecting revenue of $2.55 billion and $1.62 per share.  Adjusted earnings jumped 10% year-on-year. On a reported basis, Q1 profit was $1.36 per share, compared to $1.17 per share recorded in the first quarter of 2017. 

 

Adobe Inc NASDAQ: ADBE

Market Reaction - After hours 261.30 −$6.39 (2.39%)

Highlights

  • Digital Media segment revenue was $1.78 billion, with Creative revenue growing to $1.49 billion and Document Cloud achieving record revenue of $282 million.
  • Digital Media Annualized Recurring Revenue (“ARR”) grew to $7.07 billion exiting the quarter, a quarter-over-quarter increase of $357 million. Creative ARR grew to $6.21 billion, and Document Cloud ARR grew to $856 million.
  • Digital Experience segment revenue was a record $743 million.
  • GAAP operating income in the first quarter was $695 million, and non-GAAP operating income was $985 million.
  • GAAP net income was $674 million, and non-GAAP net income was $844 million.
  • Cash flow from operations was $1.01 billion, and deferred revenue grew to $3.22 billion exiting the quarter.
  • Adobe repurchased approximately 2.1 million shares during the quarter.

 

"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 Shantanu Narayen, president and CEO, Adobe. "Our results in Q1 reflect continued momentum across Adobe Creative Cloud, Document Cloud and Experience Cloud."

Adobe Q1 2019 earnings

Outlook

ADBE issued second quarter guidance that under analyst expectations for the second quarter. The company expects to generate revenue of $2.7 billion in the current quarter, when ends in June, yielding earnings of $1.77 per share. Analysts polled by FactSet were expecting the company to report revenue of $2.72 billion on earnings of $1.88 per share.

However Adobe reported full-year revenue and EPS estimates of $11.15 billion and $7.80 per share, respectively, which is in line with what Wall Street is expecting for the year.

Source: Adobe Inc, AlphaStreet

From The TradersCommunity Research Desk

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