Adobe delivered solid first quarter financial results on Thursday after the market closed. The software giant reported fiscal first quarter earnings of $674 million, or $1.36 a share. Non-GAAP earnings in the quarter were $1.71 a share on revenue of $2.6 billion.
Wall Street was looking for earnings of $1.62 a share on revenue of $2.55 billion.
The Photoshop maker said subscription revenue was $2.3 billion, product revenue was $170 million, and that services and support revenue reached $125 million.
Revenue from Adobe’s Digital Media unit overall was $1.78 billion and Digital Experience segment revenue was $743 million. Broken out, Creative Cloud revenue reached $1.49 billion in Q1, while Document Cloud was $282 million. Meanwhile, Adobe said annualized recurring revenue in its Digital Media unit grew to $7.07 billion, a quarter-over-quarter increase of $357 million.
For the current quarter, analysts are looking for earnings of at least $1.88 a share on revenue of $2.72 billion. Adobe responded on the low end, with a revenue estimate of $2.70 billion with non-GAAP earnings of $1.77. For the fiscal year, Adobe expects revenue of $11.15 billion, in-line with analyst estimates for revenue of $11.16 billion.
“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 Adobe CEO Shantanu Narayen, in prepared remarks. “Our results in Q1 reflect continued momentum across Adobe Creative Cloud, Document Cloud and Experience Cloud.”
More Tech Earnings
Walmart’s Q4 shows strong growth in its grocery pickup and delivery services
Square satisfies Q4 earnings targets, guidance light
VMware beats Q4 expectations, posts record annual revenue
Dell Technologies satisfies revenue targets on strong servers, storage sales
Box Q4 results mixed, Q1 guidance below estimates
HP reports mixed Q1 results, drop in notebook, desktop units sold
Best Buy delivers strong holiday quarter driven by supply chain, experience improvements
Palo Alto Networks beats Q2 expectations, rolls out new AI-based platform
Fitbit’s healthcare unit to deliver $100 million in revenue in 2019
Target’s digital efforts drove $5 billion in sales for 2018
Related Topics:
Digital Transformation
Data Centers
CXO
Innovation
Storage
Cloud TV