Adobe Systems IncorporatedNASDAQ
Tue, Oct. 18, 10:06 PM
- Among a cache of Colin Powell emails released by hackers was a presentation prepared in May for the Salesforce.com (NYSE:CRM) board (on which sits Powell) titled "M&A Target Review."
- Partial presentation slides
- The 60-slide document identified 14 possible acquisition targets. Among them were Adobe Systems (NASDAQ:ADBE), whose market cap of $53.7B is above that of Salesforce, and Pegasystems (NASDAQ:PEGA), with a $2.3B valuation.
- The list also included Demandware, which Salesforce ended up buying, and LinkedIn, which the company lost in a bidding war with Microsoft.
- Others: Workday (NYSE:WDAY), ServiceNow (NYSE:NOW), NetSuite (NYSE:N), Tableau (NYSE:DATA), Veeva Systems (NYSE:VEEV), BOX, Zendesk (NYSE:ZEN), HubSpot (NYSE:HUBS).
- CEO Marc Benioff earlier this month when fending off complaints about his interest in Twitter: “We look at a lot of things and we pass on almost everything."
Mon, Sep. 26, 9:38 AM
- Microsoft Azure (MSFT -0.9%) to become preferred cloud platform for Adobe Systems' (ADBE -0.4%) Marketing Cloud, Creative Cloud and Document Cloud products.
- Adobe Marketing Cloud to become preferred marketing service for Microsoft's Dynamics 365 Enterprise edition.
- Microsoft CEO Satya Nadella: "Business leaders in every industry are focused on how to better engage their digital customers, wherever they are. Together, Adobe and Microsoft are bringing the most advanced marketing capabilities on the most powerful and intelligent cloud to help companies digitally transform and engage customers in new ways."
- Adobe president and CEO Shantanu Narayen: "Customers today expect a well-designed, personalized and consistent experience every time they engage with a brand. Adobe and Microsoft will bring together the cloud horsepower and end-to-end capabilities brands need to design and deliver great digital experiences."
- Alliances between major cloud-service providers have been highlighted of late, with Oracle and Salesforce most recently announcing their own cloud arrangement last week.
Wed, Sep. 21, 12:28 PM
- Analyst Heather Bellini remains Neutral on Adobe Systems (ADBE +6.4%), as does Credit Suisse's Michael Nemeroff, though raises her price target from $104 to $112 (current price $107.23).
- Bellini: "Digital Media ARR came in line with management’s expectation for a $285 million build to $3.7 billion, in line with the $285 million added last quarter and compared to +$290 million in F3Q15. This was comprised of a $258 million Creative Cloud ARR build (GSe: $260 million) and a $27 million Document Cloud ARR build.” Further: "While Adobe is demonstrating leverage in its model in F2H, management cautioned that opex growth could remain elevated through FY18 as it continues to ramp sales staff and spend on marketing."
- Adobe's share price hit 7%+ levels above yesterday's close earlier in the day.
- Q3 overview
Wed, Sep. 21, 9:45 AM
- Adobe Systems (ADBE +6.7%) noted strong numbers in its Q3 report and provided confident Q4 guidance. Analyst Michael Nemeroff, though, maintains a Neutral position and $105 price target (current price $107.08).
- Nemeroff: "FQ3 Digital Media ARR of $3.698 billion was relatively in line with consensus / guidance and perhaps better-than-feared after the modest ARR miss in FQ2, but still below the company's historical beat-and-raise cadence." Further: "While we believe ADBE's FQ3 results and FQ4 guidance were generally good, just meeting expectations may not be enough for a large-cap software stock that trades at such a premium valuation, in our view.”
- Walter Pritchard at Citi and Brent Thll at UBS offer more enthusiastic perspectives following the report, both maintaining Buy ratings with respective $117 (unchanged) and $130 (raised) price targets.
- Earnings call transcript
Wed, Sep. 21, 9:17 AM
Tue, Sep. 20, 5:37 PM
Tue, Sep. 20, 4:26 PM
- Total revenue of $1.46B (+20% Y/Y), Digital Media segment revenue of $990M and Creative segment revenue of $803M (+39% Y/Y).
- Annualized recurring revenue of $3.7B ($285M Q/Q increase).
- Operating income increased 36% Y/Y, net income increased 37%.
- Cash flow from operations of $518M, deferred revenue of $1.8B.
- Approximately 3.5M shares repurchased, $344M returned to stockholders.
- Adobe (NASDAQ:ADBE) president and CEO Shantanu Narayen: "We drove strong revenue and earnings performance in Q3, further distancing ourselves from our competitors. Our leadership in cloud-based content and data platforms make us a mission critical partner to the world's biggest brands as they transform how they engage with their customers."
- Projects Q4 revenue of $1.55B-$1.6B, non-operating expense of $8M-$10M, tax rate of 21%, EPS of $0.83-$0.89 and share count of 503M-505M. Projects FY 2016 revenue of $5.8B-$5.85B, 20%+ Y/Y Digital Media segment revenue growth, Digital Media annualized recurring revenue of $4B, 20% Y/Y Adobe Marketing Cloud revenue growth, 30% Y/Y Adobe Market Cloud bookings growth and EPS of $2.94-$3.
- Conference call
- Financial targets
- Data sheet
Tue, Sep. 20, 4:06 PM
Mon, Sep. 19, 5:35 PM
Tue, Jun. 21, 5:35 PM
Tue, Jun. 21, 5:18 PM
- Adobe (NASDAQ:ADBE) -4.1% AH despite beating Q2 earnings estimates, as it forecasts Q3 revenue of $1.42B-$1.47B, largely below the average analyst outlook for $1.47B; Q3 EPS guidance of $0.69-$0.75 is in line with $0.71 consensus.
- ADBE's Q2 revenue reflected an increase for the ninth consecutive quarter, rising more than 20% Y/Y to a hair below $1.4B from $1.16B, in line with expectations; revenue from the digital media business, which houses Creative Cloud, jumped 26% to $943M.
- The company’s annualized recurring revenue in digital media rose to $3.41B, about as analysts had expected.
- ADBE also says that, based on two quarters’ results, “we’re on track to meet or exceed all of our annual fiscal year 2016 targets."
- For the full year, ADBE reaffirms EPS guidance of ~$2.80 vs. $2.84 analyst consensus estimate, on revenue of ~$5.8B vs. $5.83B consensus.
Tue, Jun. 21, 4:06 PM
Mon, Jun. 20, 5:35 PM
Thu, May 19, 12:18 PM
- Adobe (ADBE -1.1%) has named Cynthia Stoddard its chief information officer, effective June 13.
- She'll be taking charge of an infrastructure supporting Adobe's cloud businesses (including Creative Cloud, Marketing Cloud and Document Cloud). The company has estimated that Marketing Cloud revenue (which came in at $377M last quarter) will grow around 20% this year.
- Most recently, Stoddard was chief information officer at NetApp. Along with her infrastructure responsibilities, she'll lead a global service delivery strategy.
- Now read Adobe Targets Sketch, Axure And JustInMind »
Tue, May 10, 2:48 PM
- Marketo (NASDAQ:MKTO) has resumed trading after a volatility halt, spiking up 15.5% on reports that it's considering strategic options, including a possible sale of the company.
- Shares had moved in early April on similar talk, possibly with acquisition interest from Microsoft or SAP.
- Later last month, Bernstein speculated that most likely acquirers were SAP, Adobe (NASDAQ:ADBE) and Microsoft (NASDAQ:MSFT).
- Now read Competition The Issue As Marketo Pivots To Enterprise » »
Tue, May 3, 2:38 PM
- Adobe Systems (ADBE -1.1%) is acquiring audience-engagement firm Livefyre -- which runs a number of site communities around the Web -- with intent to incorporate it across Adobe Marketing Cloud.
- Terms weren't disclosed. Livefyre's platform is designed to allow brands and publishers to manage user generated content (including from social platforms like Twitter and Facebook) and direct it not only to sites but to ads, apps, emails, etc.
- Livefyre will be incorporated into Adobe Experience Manager and used to make content available across the company's eight digital marketing solutions. “With this acquisition our customers will be able to unify the best social media content with branded experiences created in Adobe Creative Cloud and community-driven content in Adobe Behance and Adobe Stock," says Adobe's Aseem Chandra.
- Now read Why Adobe Is Not Suffering From Flash Meltdown »