Adobe Systems (ADBE) Tops Q4 EPS by 6c; Announces Plans to Acquire Fotolia

Adobe Systems (NASDAQ: ADBE) reported Q4 EPS of $0.36, $0.06 better than the analyst estimate of $0.30. Revenue for the quarter came in at $1.07 billion versus the consensus estimate of $1.06 billion.

• Adobe added 644 thousand net new Creative Cloud subscriptions in the quarter.
• Creative Annualized Recurring Revenue (“ARR”) grew to $1.676 billion, and total Digital Media ARR grew to $1.947 billion.

Adobe to Acquire Fotolia

Adobe today announced it has entered into a definitive agreement to acquire privately-held Fotolia, a leading marketplace for stock content. Fotolia will be integrated into Adobe Creative Cloud, providing current and future Creative Cloud members with the ability to access and purchase over 34 million images and videos, significantly simplifying and accelerating the design process. The acquisition of Fotolia cements Creative Cloud’s role as a vibrant marketplace for creatives to buy and sell assets and services as well as showcase their talent to a worldwide audience. Adobe also plans to continue to operate Fotolia as a standalone stock service, accessible to anyone. Additional information is available in a separate press release.

Executive Quotes

"Adobe had an outstanding 2014. Creative Cloud adoption outpaced expectations and the acquisition of Fotolia will add a vibrant marketplace for our customers. Adobe Marketing Cloud, the leader in the explosive digital marketing category, continued to drive strong bookings at the world's biggest brands, agencies and media companies,” said Shantanu Narayen, Adobe president and chief executive officer.

“2014 was a pivotal year for Adobe as we completed our business model transition,” said Mark Garrett, Adobe executive vice president and chief financial officer. “In 2015 we expect revenue and earnings to grow sequentially every quarter during the year.”

Guidance:

Adobe Systems sees Q1 adjusted EPS of $0.34 - $0.40 and revenue of $1.05 - $1.10 billion, with estimates at EPS of $0.39 and revs of $1.10 billion.

The company sees FY15 revs of $4.85 billion, while estimates are at $4.93 billion. Adobe is also looking for EPS of $2.05, slightly lower than the consensus of $2.07.

For earnings history and earnings-related data on Adobe Systems (ADBE) click here.

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