Observed Signal · Jun 19, 2019 · Earnings Report · Source: OnlineMarketing.de · Impact: 4/5 · Sentiment: Positive
Adobe tops Q2 cloud revenue outlook
Adobe reported its second-quarter results with total revenue of $2.74 billion, up 25% year over year, and beating analysts' forecast of $2.70 billion. The quarter ended May 31. Experience Cloud revenue rose 34% to $784 million, surpassing the $774.9 million forecast. Subscriptions revenue reached $2.46 billion, up 27.7%, while Products revenue was $152.8 million, up 1.2%. Adobe credited its cloud growth to strategic moves, including last year’s acquisitions of Marketo and Magento, which helped optimize the cloud business. In the post-earnings call, CFO John Murphy highlighted new products attracting users who upsell to full-suite offerings across multiple applications. The stock rose about 4.6% intraday following the results. For Q3, Adobe guided revenue of $2.8 billion, slightly below consensus of $2.83 billion. The quarter underscores the strength of Adobe’s cloud-based analytics, advertising, and other offerings within the Experience Cloud.
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Key Takeaways & Evidence Grounding
- Total revenue for the quarter: $2.74B, beating forecast of $2.7B; quarter ended May 31.
- Experience Cloud revenue: $784M, up 34% and above forecast of $774.9M.
- Subscriptions revenue: $2.46B, up 27.7%.
- Q3 revenue guidance: $2.8B, below consensus of $2.83B.
- Stock rose 4.6% intraday on the results.
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