Adobe Q2 A Mixed Bag As Revenue Falls Short Of Estimates
Adobe on Thursday reported mixed second quarter financial results, beating EPS targets but falling a tad short on revenue.
Nonetheless, the cloud software giant reported record fiscal second quarter profit of $1.1 billion, or $2.27 a share. Non-GAAP earnings in the quarter were $2.45 a share on revenue of $3.13 billion, up 14% from a year ago. Wall Street was looking for earnings of $2.33 a share on revenue of $3.16 billion.
The Photoshop maker said subscription revenue increased to $2.87 billion. However, the company's product revenue fell from $152.8 million in Q2 2019 to $128 million in the current quarter, and services and support revenue dropped slightly $126 million.
Revenue from Adobe's Digital Media unit overall was $2.23 billion and Digital Experience segment revenue was $826 million. Broken out, Creative Cloud revenue reached $1.87 billion in Q2, while Document Cloud was $360 million.
Meanwhile, Adobe said annualized recurring revenue in its Digital Media unit grew to $9.17 billion, a quarter-over-quarter increase of $443 million. Creative ARR grew to $7.93 billion, and Document Cloud ARR grew to $1.24 billion.
For the current quarter, analysts are looking for earnings of $2.46 a share on revenue of $3.28 billion. Adobe responded with a revenue estimate of $3.15 billion with non-GAAP earnings of $2.40.
In March Adobe lowered its guidance for the second quarter, saying that it expected enterprise customers to defer bookings, delay consulting services and cut spending amid the worsening global pandemic. The company also prepared for reduced consumer spending and lower software license revenue from channel partners.
Adobe has also withdrawn the annual fiscal 2020 targets that were issued in December 2019. Shares of Adobe were up over 4% after hours.
Big Techs Spending Soars With Data Centre Boom
The rapid expansion of data centres has turned Big Tech into big spenders. As companies strive to meet the growing deman... Read more
SEC's Oversight Over Digital Assets: Balancing Regulation And Innovation
As the digital asset market continues to expand, regulatory agencies like the Securities and Exchange Commission (SEC) a... Read more
Harnessing AI To Combat Cyber Risk: Strategies For Financial Institutions
Cyber threats pose an ever-present danger to financial institutions, requiring robust strategies to mitigate risks effec... Read more
Adaptation And Innovation: Revolut's Response To Banking License Delay Through Advertising Sales Push
As Revolut eagerly awaits the acquisition of its banking license, the fintech giant has demonstrated remarkable adaptabi... Read more
Riding The Wave: The Evolution Of Fintech Investment Strategies
The fintech industry has experienced unprecedented growth in recent years, captivating the attention of investors worldw... Read more
How Fintech Is Revolutionizing Traditional Banking
How fintech is revolutionizing traditional banking is a topic that is garnering positive and immense discourse within th... Read more