Adobe Inc. (MM) (NASDAQ:ADBE)
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1 Month : From Jun 2019 to Jul 2019
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)
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