Adobe Q1 tops estimates on strong Creative Cloud momentum

Adobe delivered solid first quarter financial results on Thursday after the market closed. The software giant reported fiscal first quarter earnings of $674 million, or $1.36 a share. Non-GAAP earnings in the quarter were $1.71 a share on revenue of $2.6 billion.

Wall Street was looking for earnings of $1.62 a share on revenue of $2.55 billion.

The Photoshop maker said subscription revenue was $2.3 billion, product revenue was $170 million, and that services and support revenue reached $125 million.

Revenue from Adobe’s Digital Media unit overall was $1.78 billion and Digital Experience segment revenue was $743 million. Broken out, Creative Cloud revenue reached $1.49 billion in Q1, while Document Cloud was $282 million. Meanwhile, Adobe said annualized recurring revenue in its Digital Media unit grew to $7.07 billion, a quarter-over-quarter increase of $357 million.

For the current quarter, analysts are looking for earnings of at least $1.88 a share on revenue of $2.72 billion. Adobe responded on the low end, with a revenue estimate of $2.70 billion with non-GAAP earnings of $1.77. For the fiscal year, Adobe expects revenue of $11.15 billion, in-line with analyst estimates for revenue of $11.16 billion. 

“Adobe is fueling the creative economy, driving the paper-to-digital revolution and enabling businesses to transform through our leadership in customer experience management,” said Adobe CEO Shantanu Narayen, in prepared remarks. “Our results in Q1 reflect continued momentum across Adobe Creative Cloud, Document Cloud and Experience Cloud.”

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Adobe Q1 tops estimates on strong Creative Cloud momentum
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