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Software solutions provider Adobe Systems reported better than expected earnings Fourth quarter earnings on Thursday with record quarterly revenue of $2.99 billion, 21% y/y growth. In fiscal year 2019 $ADBE saw record annual revenue of $11.1 7 billion, up 24% year-over-year

Adobe Changing The World

 

Adobe Inc NASDAQ: ADBE Reported Earnings After Close Thursday

$2.29 Beat $2.28 EPS And $2.99B Beat $2.97 Billion Forecast in Revenue. 

Earnings 

Adobe said fourth quarter net income jumped by 26% to $851.9 million or $1.74 per share. Adjusted earnings increased by 25% to $2.29 per share. Adobe Inc EPS was expected at 2.28 on revenue of 2.97bln. Revenue grew by 21% to $2.99 billion.

The top line benefited from the growth in Digital Media and in Digital Experience that offset declines in Publishing.

 

Adobe Inc NASDAQ: ADBE

Market Reaction - After hours $315.78 +9.82 (+3.21%)

Highlights

  • Adobe achieved record annual revenue of $11.1 7 billion in fiscal year 2019, representing 24 percent year-over-year growth.
  • The company reported annual GAAP diluted earnings per share of $6.00 and non-GAAP diluted earnings per share of $7.87.
  • Digital Media segment revenue was $7.71 billion, with Creative and Document Cloud achieving record annual revenue of $6.48 billion and $1.22 billion, respectively
  • Digital Media ARR grew by $1.69 billion during the year.
  • Digital Experience segment revenue was $3.21 billion, representing 31 percent year-over-year growth
  • Subscription bookings grew by more than 20 percent during the year.
  • Operating income grew 15 percent and net income grew 14 percent year-over-year on a GAAP-basis; operating income grew 23 percent and net income grew 15 percent year-over-year on a non-GAAP basis.
  • Adobe generated a record $4.42 billion in operating cash flow during the year
  • The company repurchased 9.9 million shares during the year, returning $2.7 billion of cash to stockholders

Outlook

  • Looking ahead into the first quarter of 2020, the company predicts total revenue of about $3.04 billion, unadjusted earnings of $1.76 per share, and adjusted earnings of $2.23 per share.
  • For fiscal 2020, total revenue is still expected to be about $13.15 billion, unadjusted earnings of about $7.40 per share, and adjusted earnings of $9.75 per share.

Source: Adobe Inc, AlphaStreet

From The TradersCommunity Research Desk

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