Adobe reports strong Q4, annual revenue tops $11 billion

Shares of Adobe were up over 3% after hours.

Adobe released fourth quarter and fiscal 2019 financial results after the bell on Thursday. As usual, the Photoshop maker said its results broke corporate records for quarterly and annual revenue.

The software giant reported Q4 net income of $851 million, or $1.74 a share. Non-GAAP earnings in the quarter were $2.29 a share on revenue of $2.99 billion, up 21% from the same period last year. Wall Street was looking for earnings of $2.26 a share on revenue of $2.97 billion.

For the year Adobe reported revenue of $11.17 billion and earnings of $7.87 per share, compared to analyst estimates for revenue of $11.15 billion and EPS of $7.84. Shares of Adobe were up over 3% after hours.

Revenue from Adobe's Digital Media unit overall was $2.08 billion and Digital Experience segment revenue was $859 million. Broken out, Creative Cloud revenue reached $1.74 billion in Q4, while Document Cloud was $339 million. Meanwhile, Adobe said annualized recurring revenue in its Digital Media unit grew to $8.40 billion.

For the year, Adobe's Digital Media unit revenue was $7.71 billion and Digital Experience segment revenue came to $3.21 billion. Creative Cloud revenue rang up to $6.48 billion while Document Cloud came to $1.22 billion.聽

"Global interest and subscription adoption were strong throughout the quarter and accelerated after Adobe MAX," said Adobe chief executive Shantanu Narayen. "Demand for mobile offerings and overall web traffic continued to grow. We are attracting new customers, with over 50% of our cumulative subscribers being new to our Creative Cloud franchise."聽

For the current quarter, analysts are looking for earnings of $2.23 a share on revenue of $3.09 billion. Adobe responded with a revenue estimate of $3.04 billion with non-GAAP earnings of $2.23.聽

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