How Adobe Knocked Out Earnings
Adobe Systems reported its fiscal fourth-quarter financial results after the markets closed on Thursday.
Adobe Systems Inc. (NASDAQ: ADBE) reported its fiscal fourth-quarter financial results after the markets closed on Thursday. The company had $0.62 in earnings per share (EPS) on $1.31 billion in revenue, compared to consensus estimates that called for $0.60 in EPS on $1.31 billion in revenue. The same period from the previous year had $0.36 in EPS on $1.07 billion in revenue.
Digital Media annualized recurring revenue grew to $2.99 billion at the end of the quarter, an increase of $350 million. Creative annualized recurring revenue grew to $2.60 billion, an increase of $310 million driven by enterprise adoption and the addition of 833 thousand net new individual and team Creative Cloud subscriptions.
Adobe Marketing Cloud achieved revenue of $352 million with strong bookings growth and a stronger-than-expected shift in customer adoption to SaaS-based solutions.
During this quarter Adobe repurchased roughly 1.4 million shares for a total of $122 million.
[nativounit]
Shantanu Narayen, president and CEO of Adobe, commented on earnings:
Adobe is driving digital experiences that are fundamental to the transformation of every global brand, government and educational institution. Our record revenue and strong momentum are a reflection of our industry-leading content and data solutions in Digital Media and Digital Marketing.
Mark Garrett, executive vice president and CFO, added:
Strong growth across key financial metrics reflect the amazing performance we’ve achieved in fiscal 2015. Our long-term financial targets, including a 20% revenue CAGR through fiscal 2018, show that the benefits of our move to the cloud are just beginning.
Cash flow from operations this quarter was $455 million, and deferred revenue grew to a record $1.49 billion. On the books, cash, equivalents, and short-term investments totaled $3.99 billion compared to the same period last year that had $3.74 billion.
Shares of Adobe closed Thursday down 0.7% at $88.96, with a consensus analyst price target of $93.87 and a 52-week trading range of $68.98 to $92.88. Following the release of the earnings report, shares were initially trading up 5% at $92.80 in the after-hours trading session.
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
