Adobe Hits a Record Close After Reporting Earnings

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Shares of Adobe, a computer software company, saw their shares jumping on Friday.

The stock rose nearly 4% to hit a record close of $317.94 after the San Jose-based company reported quarterly earnings.
Adobe reported earnings per share of $2.29 on revenue of $2.99 billion, both topping analyst estimates.

The company, which is known for products like Photoshop and Acrobat, saw its shares hit the highest close in the company’s 23 years on the public market on Friday.

For the fourth quarter, Adobe reported earnings per share of $2.29 topped the average analyst estimate of $2.26, according to Refinitiv. Revenue of $2.99 billion exceeded the $2.97 billion consensus estimate.

The company also reported that subscription revenue jumped 23% and now accounts for almost all of Adobe’s sales.

Adobe’s biggest product is its Creative Cloud, which includes photo and film editing tools as well as design software.
“We’re attracting new customers with over 50% of our cumulative subscribers being new to our Creative Cloud franchise,” said CEO Shantanu Narayen.

Narayen said on the earnings call, “Fiscal 2019 was a phenomenal year for Adobe as we exceeded $11 billion in revenue, a significant milestone for the company. Our record revenue and EPS performance in 2019 makes us one of the largest, most diversified, and profitable software companies in the world. Total Adobe revenue was $11.17 billion in FY 2019, which represents 24% annual growth.”

He added, “GAAP earnings per share in FY 2019 was $6, and non-GAAP earnings per share was $7.87. We closed the year with another record quarter, delivering Q4 revenue of $2.99 billion, representing 21% year-over-year growth. GAAP earnings per share for the quarter was $1.74, and non-GAAP earnings per share was $2.29.”

“Our strategy to unleash creativity for all, accelerate document productivity and power digital businesses is significantly expanding our customer universe, from students to business communicators to creative professionals to the world’s largest multinational corporations. Ground-breaking innovation in Creative Cloud, Document Cloud and Experience Cloud is accelerating our opportunity and momentum.”

Looking ahead, Adobe is expecting fiscal 2020 revenue of $13.15 billion.

Disclaimer: We have no position in Adobe Inc. (NASDAQ: ADBE) and have not been compensated for this article.

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