Adobe share price down 2% after Q1 earnings revenue beat
The software company's stock is down despite reporting a better-than-expected Q1 earnings report.
|Earnings per share||$1.71|
|Subscription revenue||$2.3 billion|
|Net income||$674.2 million|
Adobe share price down 2% as earning revenue beats estimates
Adobe’s earnings exceeded financial experts’ expectations. The software company’s earnings per share was $1.71, exceeding the $1.62 Wall Street predictions. Adobe’s Q1 revenue was $2.6 billion, slightly higher than the $2.55 billion projected. Subscription revenue was strong at $2.6 billion. The subscription software company also had a net income of $674.2 million, surpassing the $492.1 million from a year ago. Chief executive officer, (CEO), Shantanu Narayen, touted the success of Adobe’s Q1 results.
‘Adobe is fueling the creative economy, driving the paper-to-digital revolution and enabling businesses to transform through our leadership in customer experience management. Our results in Q1 reflect continued momentum across Adobe Creative Cloud, Document Cloud and Experience Cloud,’ said Narayen.
How do Adobe’s Q1 results compare to other software companies?
Adobe’s Q1 results were similar to its software competitor Salesforce. Salesforce’s Q4 2018 earnings were positive, with earnings and revenue beating estimates, as more businesses adopted subscription cloud software.
What’s next for Adobe’s Q2 results?
Despite better-than-expected Adobe Q1 earnings, Adobe’s guidance for Q2 is weak. The corporation predicted earnings per share of $1.77, lower than the projected $1.88. The company’s predicted revenue is $11.15 billion, keeping in line with Wall Street’s estimate of $11.16 billion.
Adobe’s Q1 results shows how digital media investment pays off
Adobe moved beyond just being the producer of Photoshop by investing in its Digital Experience Division, including its Document and Creative Cloud services. The acquisition of marketing company, Marketo, and e-commerce platform, Magento, also helped Adobe’s Q1 profits rise. Investors have shown that they approve of Adobe’s new expansion into more cloud software services.
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