Adobe Systems (ADBE) Tops Q2 EPS by 3c; Trims FY15 Revenue Outlook on FX Impact

(Updated - June 16, 2015 4:18 PM EDT)

Adobe Systems (NASDAQ: ADBE) reported Q2 EPS of $0.48, $0.03 better than the analyst estimate of $0.45. Revenue for the quarter came in at $1.16 billion versus the consensus estimate of $1.16 billion.

"Strong execution against our Creative Cloud, Document Cloud and Marketing Cloud businesses drove record revenue," said Shantanu Narayen, Adobe president and chief executive officer. "We are accelerating the pace of innovation in our Cloud offerings and are thrilled to be launching our best Creative Cloud release to date, which includes Adobe Stock – our new stock content service."

• Digital Media Annualized Recurring Revenue (“ARR”) grew to $2.35 billion exiting the quarter, driven by an increase in Creative ARR of $230 million to $2.02 billion.
• Adobe Marketing Cloud achieved revenue of $327 million.

Guidance:

Adobe sees Q3 digital media revenue up sequentially and at $2.925 billion by the end of FY15. The company also sees marketing cloud revenue up 21 percent year-over-year.

Adobe now sees FY15 revenue of $4.845 billion, from prior expectations of $4.925 billion. The company sees an $80 million impact on foreign exchange.

Adobe commented, Given our business momentum, we are increasing our Digital Media ARR target to approximately $2.925 billion exiting FY15, which as a reminder is measured on a constant currency basis. This updated ARR target does not include any benefit from our newly launched Adobe Stock service.

Despite the impact of currency, we continue to expect Adobe Marketing Cloud bookings growth of approximately 30% for the year, and non-GAAP earnings per share of approximately $2.05.

*** The Street sees FY15 revenue of $4.88 billion and EPS of $2.08.

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

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