Adobe Systems Incorporated (ADBE) Tops Q1 Earnings Expectations

Adobe Systems Incorporated (NASDAQ:ADBE) unveiled its latest quarterly earnings results, which were better than analysts’ expectations, sending shares higher after hours.

Adobe Systems Incorporated (ADBE)The Photoshop parent company said that for its first quarter, it brought in net income of $583.1 million, or $1.17 per share, topping its year-ago total of $398.5 million. On an adjusted basis, the company earned $1.55 per share.

The figure was higher than Wall Street’s consensus estimates as analysts were calling for Adobe Systems to bring in adjusted earnings of $1.43 per share, according to data compiled by FactSet. The company’s revenue came in at $2.08 billion, topping its year-ago sales of $1.68 billion, while also reaching record revenue for a quarter.

Analysts were projecting revenue of $2.05 billion, according to FactSet, which surveyed analysts to attain a consensus. Adobe Systems’ Digital Media Annualized Recurring Revenue (ARR) amounted to $5.72 billion by the end of the quarter, marking a quarter-to-quarter increase of $336 million.

Its creative ARR went up to $5.07 billion, while its Document Cloud ARR surged to $647 million.“Our leadership in the large addressable markets we created, combined with Adobe’s leveraged operating model, contributed to another record quarter in Q1,” said Mark Garrett, executive vice president and CFO at the company.

For its second quarter, Adobe Systems is projected to bring in about $1.50 per share on revenue of $2.14 billion, according to analysts.

ADBE stock gained more than 3% after the bell on the earnings beat.

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