Adobe Systems Inc. (NASDAQ: ADBE) released its fiscal second-quarter financial results after the markets closed on Thursday and the results beat expectations. The computer software company said that it had $1.66 in earnings per share (EPS) and $2.20 billion in revenue for the quarter that ended June 1, compared with consensus estimates that called for $1.54 in EPS and $2.16 billion in revenue. The same period from last year had $1.02 in EPS and $1.77 billion in revenue.
During the quarter, the company saw a 24% growth in revenue year-over-year, reaching a record for the fiscal second quarter.
Overall, the Digital Media segment revenue was $1.55 billion, with Creative group revenue increasing to $1.30 billion and Document Cloud achieving record revenue of $243 million, representing 22% year-over-year growth.
Digital Media Annualized Recurring Revenue (ARR) climbed to $6.06 billion at the end of the period, a quarter-over-quarter increase of $343 million. Creative ARR expanded to $5.37 billion, and Document Cloud ARR grew to $694 million.
The company did not offer any guidance for the fiscal third quarter. There are consensus estimates calling for $1.61 in EPS and $2.22 billion in revenue for this coming period.
Shantanu Narayen, President and CEO of Adobe, commented:
Adobe delivers all the capabilities to enable transformative digital experiences, including content creation and management, predictive analytics and commerce. Our record results in Q2 reflect continued execution against this significant opportunity where Adobe is the clear market leader.
Shares of Adobe closed Thursday at $258.10, with a consensus analyst price target of $239.60 and a 52-week range of $136.29 to $258.91. Following the announcement, the stock was down more than 3% to $250.31 in pre-market trading Friday.