Photoshop maker Adobe reports better than expected profit
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.