Adobe Systems Beats Q4 Views, Sees Continued Growth
Adobe Systems Incorporated (NASDAQ: ADBE) posted fourth-quarter results that beat Wall Street's estimates and said its shift to cloud-based products outpaced its plan.
In the extended session, Adobe gained more than 7 percent, changing hands at $75.15.
Subscription revenue during the fourth quarter grew nearly 75 percent to $628.9 million from $359.7 million a year earlier, while product revenue fell 42 percent to $327.9 million from $567.2 million last year.
Chief Financial Officer Mark Garrett predicted that 2015 earnings and revenue will grow sequentially in each quarter, while Chief Executive Shantanu Narayen said the company's Adobe Marketing Cloud "continues to drive strong bookings."
Net income in the recent quarter increased 12 percent to $23.3 million, or $0.14 a share, from $65.3 million, or $0.13 a share in the year-ago period.
Excluding items, adjusted income equaled $0.36 a share.
Total revenue grew 2.9 percent to $1.07 billion from $1.03 billion a year earlier.
Wall Street expected adjusted profits of $0.30 a share on revenue of $1.06 billion.
Separately, Adobe said Thursday it agreed to to acquire privately-held Fotolia, a stock image provider, for $800 million. Fotolia will be integrated into Adobe Creative Cloud.
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