Adobe Posts Rise in Revenue -- WSJ
June 19 2019 - 3:02AM
Dow Jones News
By Patrick Thomas
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (June 19, 2019).
Adobe Inc. reported higher revenue in its second quarter as the
software company worked to bolster products in its signature
Creative Suite and grow its broader digital-media business.
Adobe's revenue rose 25% from a year earlier to $2.74 billion,
ahead of the $2.71 billion expected from analysts surveyed by
FactSet. Revenue for the digital-media business, which includes
products like Adobe Photoshop and Premiere, grew 22% to $1.89
billion.
Adobe executives said Tuesday the company benefited from new
user growth stemming from its creative cloud apps offered on mobile
devices, as well as from overseas expansion efforts.
Chief Executive Shantanu Narayen said on a conference call that
the company's Adobe Spark program, which lets users create quick
graphics for social media, helped Adobe acquire new customers
during the quarter. He said Spark traffic on web and mobile
platforms more than doubled from a year ago.
"It's just a great, in addition to mobile, way to attract new
customers, " Mr. Narayen said on the call. "Mobile is a tailwind in
our Digital Media business, and we're driving significant increases
in mobile traffic and member sign-ups for our offerings."
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.
In the quarter ended May 31, Adobe's profit fell nearly 5% to
$632.6 million, or $1.29 a share. Total operating expenses rose 30%
to $1.59 billion. Excluding one-time items, the company reported
earnings of $1.83 a share, more than the $1.78 a share expected by
analysts.
For its current quarter, the company said it anticipates
earnings of $1.40 a share, or $1.95 on an adjusted basis, with $2.8
billion in revenue. Analysts expect earnings of $1.47 a share, or
$2.05 on an adjusted basis, and $2.83 billion in revenue.
Shares of Adobe closed at $276.78 Tuesday and ticked up during
aftermarket trading. The company's stock is up 22% this year.
Write to Patrick Thomas at Patrick.Thomas@wsj.com
Corrections & Amplifications Adobe Systems Inc. changed its
name to Adobe Inc. in 2018. An earlier version of this article
incorrectly used the company's former name.
(END) Dow Jones Newswires
June 19, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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