Friday 21 July 2017

Photoshop maker Adobe reports better than expected profit

Adobe company logos are seen in this picture illustration taken in Vienna July 9, 2013. Picture taken July 9, 2013. To match Special Report TAX-BIGTECH/ REUTERS/Leonhard Foeger
Adobe company logos are seen in this picture illustration taken in Vienna July 9, 2013. Picture taken July 9, 2013. To match Special Report TAX-BIGTECH/ REUTERS/Leonhard Foeger

Photoshop maker Adobe Systems has reported a better-than-expected profit for the sixth straight quarter, helped by a 12pc sequential jump in annualized recurring revenue in its digital media segment.

However, the company's shares fell about 2pc in extended trading after it forecast lower-than-expected revenue and profit for the current quarter.

Adobe said on that it expected an adjusted profit of 45-51 cents per share on revenue of $1.18bn-$1.23bn for the third quarter.

Analysts were expecting a profit of 54 cents per share and revenue of $1.25bn, according to Thomson Reuters I/B/E/S.

Adobe is switching from traditional box licenses to web-based subscriptions for its Creative Cloud software bundle for more predictable recurring revenue. Online subscriptions let customers access the latest software versions for a monthly payment.

The company said it expects revenue in its print and publishing business to be relatively flat in the current quarter with the second.

Adobe earlier launched Adobe Stock, a collection of 40 million photographs, illustrations and graphics, available in 36 countries and 13 languages.

The company's net income rose to $147.5m, or 29 cents per share, in the second quarter ended May 29, from $88.5m, or 17 cents per share, a year earlier.

Excluding items, the company earned 48 cents per share, beating analysts' average estimate of 45 cents per share.

Total revenue rose 8.8 percent to $1.16bn, in line with analysts' average estimate.

Reuters

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