Photoshop maker Adobe Practices on Thursday reported a better-than-expected quarterly revenue and profit, driven by convincingness in its digital media business, which houses its flagship product Inventive Cloud.
Shares of the company, which also forecast first-quarter profit in the first place estimates, were up 1.7 percent at $178 in extended trading.
The sell to cloud-based subscription has brought a more predictable revenue stream for Adobe, by dispose of its software through web-based subscriptions, and not through the sale of packaged-licensed software.
Net income from Adobe’s digital media business rose 29.2 percent to $1.39 billion, circuit analysts’ estimate of $1.35 billion, according to financial data and analytics tight FactSet.
“Digital Media could benefit from strong seasonality, specifically with ETLA (Enterprise Term License Agreement) renewals as schemes could expand more aggressively in front of price lift,” Cowen and Co. analyst Derrick Wood wrote in a pre-earnings note.
The companions in October said it would hike the subscription fee for new updates of various Originative Cloud products starting March 2018.
“FY17 was another strong year for Adobe, highlighted by list Creative Cloud, Document Cloud and Experience Cloud revenue, and top off by the first ever $2 billion quarter in company history,” CEO Shantanu Narayen articulate.
Adobe said on Thursday it expected an adjusted profit of $1.27 per share in and revenue of $2.04 billion for the first quarter. Analysts were in the family way a profit of $1.24 per share and revenue of $2.04 billion, according to Thomson Reuters I/B/E/S.
The Pty’s net income rose to $501.5 million, or $1 per share, in the fourth mercifulness ended Dec. 1, from $399.6 million, or 80 cents per dole out, a year earlier.
Excluding items, Adobe earned $1.26 per allocation, beating the average analysts’ estimate of $1.16. Total revenue cause 25 percent to $2.01 billion, beating estimates of $1.95 billion.