Adobe Shares Tumble on In-Line Forecast
CEO disappointed with Experience Cloud Bookings during the third quarter
by Abi Moses on 22nd September, 2017
Yesterday, Adobe Systems reported a better-than-expected quarterly revenue. The positive report is said to have been driven by subscriber additions to Creative Cloud, which is a software tool that houses Photoshop.
Although, the company’s shares tumbled approximately 3.6% to $150.90 during after market trading. This was unveiled during Adobe’s fourth-quarter revenue which is in line with estimates.
The overall shift to a cloud-based subscription has brought a very predictable revenue stream for the company, and it has done this by selling its software through web-based subscriptions. Though, this is not done through the sale of packaged-licensed software.
The revenue from the company’s digital media unit, which includes Creative Cloud, heightened 28.3% to $1.27 billion. This beats the estimated prediction of $1.25 billion from the data and analytics firm FactSet.
There was a predicted adjusted profit from the software maker of $1.15 per share. This would ultimately make a revenue of $1.95 billion for the fourth quarter. According to Thomas Reuters, numerous analysts were expecting earnings of $1.10 per share and a revenue of $1.95.
On the other hand, CEO Shantanu Narayen said that he was disappointed with Experience Cloud Bookings during the third quarter. The Experience Cloud is a group of cloud services, and is an overall part of the digital marketing unit.
The Experience Cloud business recorded a total revenue of $507.8 million in the reported quarter, which is roughly 27% of the company’s total quarterly revenue.
According to the net income, it heightened $419.6 million, or 84 cents per share during the third quarter.
Total revenue’s rose 25.8% to $1.84 billon.
Apart from items, Adobe made $1.10 per share, which beats the analysts estimate of roughly $1.01 per share.
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