Adobe revenue beats on creative cloud unit strength
Adobe Systems Inc reported better-than-expected quarterly revenue driven by higher demand for its creative cloud business including Photoshop, Illustrator and InDesign.
Revenue from the company`s creative cloud unit, its largest business by revenue, rose 33% to $886 million.
Annualised recurring revenue, which is used to track the performance of the company`s subscriptions, rose to $4.01 billion, up from $3.70 billion in the prior quarter above analysts` estimate of $3.97 billion, according to FactSet StreetAccount.
Adobe has posted double-digit revenue growth in the last six quarters driven by the shift over the past few years to selling software on a subscription basis.
The company also forecast first-quarter (Q1) revenue of $1.63 billion below average analysts` estimate of $1.65 billion according to Thomson Reuters I/B/E/S.
The California-based company`s net income rose to $399.6 million, or 80 cents per share, in the fourth quarter ended December 2, from $222.7 million, or 44 cents per share, a year earlier.
Total revenue rose 23.1% to $1.61 billion, beating estimates of $1.59 billion. Excluding items, Adobe earned 90 cents per share, beating estimates of 86 cents.