Adobe Raises Revenue Forecast -- Update
December 13 2018 - 9:44PM
Dow Jones News
By Maria Armental
Adobe Systems Inc. is betting that sustained demand from U.S.
corporate customers and technology buyers in emerging markets will
drive another year of revenue growth above 20%.
"Digital has become an imperative for enterprises," Chief
Executive Shantanu Narayen said during a conference call with
analysts, adding that company executives know if they fail to keep
up with technology, a rival could swoop in.
"To compete and win today," Mr. Narayen said, businesses "must
provide a world-class, end-to-end customer experience across every
touch point."
The company, which reported a record $9.03 billion in revenue
for the year ended Nov. 30, on Thursday raised its revenue target
for the current financial year to $11.15 billion, including its
acquisition of marketing-automation firm Marketo.
Adobe built its name around desktop publishing with products
like Acrobat and the ubiquitous PDF but has since transitioned to a
cloud-based, subscription business.
Its high-margin digital-media business, which includes the
revamped Acrobat offerings, accounted for $6.33 billion of revenue
in the year just ended. And Adobe said it expects the business to
add about $1.45 billion of recurring revenue this year, up from its
October view of $1.4 billion.
The company still expects a 25% increase in bookings in its
digital-experience business, which houses the marketing technology
and data and analytics products.
Adobe has been investing heavily in the business, including the
purchase of Marketo, its largest acquisition at $4.75 billion. On
Thursday, it said it expects financial benefits to kick in "as the
accounting impact from the transaction dissipates" during the year
and said it projects annual profit to increase to $5.54 a share, or
$7.75 a share on an adjusted basis, short of analysts'
expectations.
On Thursday, Adobe reported fourth-quarter profit rose 35% to
$678.2 million, or $1.37 a share.
Revenue rose 23% to $2.46 billion.
Gross profit margin narrowed to 85.4% from 86.5% a year
earlier.
Shares, which outperformed the market with a 42% increase this
year, closed Thursday at $248.08.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
December 13, 2018 21:29 ET (02:29 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Adobe (NASDAQ:ADBE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Adobe (NASDAQ:ADBE)
Historical Stock Chart
From Apr 2023 to Apr 2024
