Adobe Reports 25% Revenue Increase in Latest Quarter
June 18 2019 - 5:11PM
Dow Jones News
By Patrick Thomas
Adobe Systems Inc. reported higher-than-expected revenue in its
second quarter, driven by an increase in its subscription software
business.
Revenue rose 25% from a year earlier to $2.74 billion. Analysts
surveyed by FactSet had expected $2.71 billion of revenue the
quarter.
At the company's digital-media business, which accounts for most
of its subscription revenue, revenue grew 22% from a year earlier
to $1.89 billion.
Adobe built its name around desktop publishing with products
like Acrobat and the ubiquitous PDF but has since transitioned to a
cloud-based, subscription business.
The company posted a profit of $632.6 million, or $1.29 a share,
compared with $663.2 million, or $1.33 a share, a year ago.
Excluding one-time items, the company reported adjusted earnings
of $1.83 a share. Analysts were expecting earnings of $1.25 a
share, or $1.78 a share on an adjusted basis.
Total operating expenses were $1.59 billion for the quarter,
compared with $1.22 billion the same period a year ago.
For its current quarter, Adobe said it expects $2.80 billion in
revenue, earnings of $1.40 a share and adjusted earnings of $1.95 a
share. The company's forecast is below the $2.83 billion in revenue
and $1.33 a share analysts polled by FactSet were expecting.
Shares of Adobe ticked up 2.6% during aftermarket trading. The
company's stock is up 22% this year.
Write to Patrick Thomas at Patrick.Thomas@wsj.com
(END) Dow Jones Newswires
June 18, 2019 16:56 ET (20:56 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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