Adobe Systems Incorporated (NASDAQ:ADBE) reported second quarter financial results that beat the consensus estimates of Wall Street analysts, which propelled its stock price higher. The shares of the software maker closed $73.08 per share, up by more than 8% on Wednesday.
Financial Results
Adobe Systems Incorporated (NASDAQ:ADBE) reported $0.37 in adjusted earnings per share and $1.07 billion in revenues for the second quarter that ended May 30. The financial performance of the company exceeded that $0.34 in adjusted earnings per share on $1.05 billion revenue projected by Wall Street analysts.
According to the software maker, its Creative Annualized Recurring Revenue (ARR) increased to $1.2 billion and total Digital Media ARR climbed to $1.38 billion. Its quarterly revenue from Adobe Marketing Cloud was $284 million, a 23% growth year-over-year. The company said 53% of its revenue in the second quarter was generated from its recurring sources.
Adobe Systems Incorporated (NASDAQ:ADBE) ended the quarter with $368 million cash flow from operations and $928 million in deferred revenue. It has 2,308,000 paid Creative Cloud subscriptions by the end of the period.
During the quarter, the software maker repurchased approximately 2.6 million of its own shares.
Adobe Anticipate Strong Results in the Second Half of 2014
In a statement, Adobe president and CEO Shantanu Narayen said, “Adobe’s first-half upside was driven by accelerated adoption of Creative Cloud and Adobe Marketing Cloud. We’re excited about our upcoming product pipeline and expect a strong second half of the year.”
On the other hand, Mark Garret, executive vice president and CFO of the company said, “Our earnings performance in Q2 reflects the financial leverage we have in our model. With Adobe’s Creative Cloud transformation behind us, our focus moving forward is to drive strong revenue and earnings growth with our market-leading cloud offerings.”
New Creative Cloud Photography Plan
Separately, Adobe Systems Incorporated (NASDAQ:ADBE) introduced a new Adobe Cloud Photography plan for $9.99 per month. The new plan combined Photoshop CC and Lightroom 5 tools designed for any person interested in photography. The company also announced that availability of Photoshop Mix, a new iPad app that provides access to powerful Photoshop features.
“With Photoshop, Lightroom and new mobile photo apps, we’ve created the most complete photography solution on the planet, ensuring that anyone interested in photography can be creative with their images, no matter where they are,” said Winston Hendrickson, vice president, digital imaging at Adobe Systems Incorporated (NASDAQ:ADBE).
