Adobe Q2 beats estimates
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Adobe delivered "record" second quarter financial results Tuesday that were once again bolstered by recurring revenue from Creative Cloud. The software giant reported fiscal second quarter earnings of $374 million, or 75 cents a share, with Creative Cloud revenue growing to a record $1.01 billion.
Non-GAAP earnings in the quarter were $1.02 cents a share on revenue of $1.73 billion, down from $1.77 billion last quarter.
Wall Street was looking for earnings of 95 cents a share on revenue of $1.65 billion. Adobe's shares were up just above 3 percent in late trading.
Adobe said revenue from its Experience Cloud brought in $495 million for the quarter, an increase of 29 percent above last year. Revenue from Adobe's Digital Media unit, which includes Creative Cloud, drove annualized recurring revenue to $4.56 billion.
Document Cloud revenue was $200 million, and the company said it grew Document Cloud ARR to $520 million exiting the quarter.
"Digital transformation continues to be the burning agenda for creative professionals, enterprises, governments, and educational institutions," said Adobe president and CEO Shantanu Narayen. "Adobe is the go-to company for creating world-class digital customer journeys from design to delivery to measurement and monetization."
For the current quarter, Adobe now projects revenue $1.8 billion. Analysts are looking for earnings of at least 97 cents a share on revenue of $1.8 billion.