What's your position on ?
Why are you ish?
You voted ish on Vote again
Posts appear on the My Feed page of subscribers to this ticker
Mar. 17, 2015, 4:06 PM
- Adobe Systems (NASDAQ:ADBE): FQ1 EPS of $0.44 beats by $0.05.
- Revenue of $1.11B (+11.0% Y/Y) beats by $20M.
- Shares -4.9%.
Mar. 17, 2015, 10:15 AM
- Much like the very successful Creative Cloud, Adobe's (ADBE +0.5%) Document Cloud aims to convert users of a widely-used on-premise software solution - in this case, Acrobat - into subscribers of a solution that combines on-premise apps with cloud software and value-added services.
- Central to the offering is Acrobat DC, an overhauled version of Adobe's ubiquitous document-viewing software that's optimized for touch displays, contains a Tool Center for accessing frequently-used tools, and (using imaging tech ported from Photoshop) delivers improved document scanning.
- Other Document Cloud features include free and improved document e-signing, better image-scanning, a solution for automatically moving files, signatures, and settings across devices (Mobile Link), and new mobile apps that aim to deliver PC-like functionality to subscribers.
- The e-signing features stem from Adobe's EchoSign electronic signature software unit, and take aim at successful rival DocuSign. Adobe argues Acrobat integration and the company's PDF expertise give it an edge over DocuSign.
- The launch comes ahead of this afternoon's FQ1 report, and follows an overhaul of Adobe's Marketing Cloud online ad software platform that includes a new algorithmic engine and data analysis tools. Adobe's Document Services revenue fell 1% Y/Y in FQ4 to $197.1M.
Mar. 16, 2015, 5:35 PM
Jan. 14, 2015, 4:43 PM
- Adobe's (NASDAQ:ADBE) buyback is good for repurchasing over 5% of shares at current levels. It succeeds a prior $2B buyback that has been used up, and is good through FY17 (ends Nov. '17).
- The media/ad software giant spent $127M on buybacks during its November quarter, and $689M over the whole of FY14. It ended the quarter with $3.7B in cash/investments to finance capital returns with, and $1.5B in debt.
- ADBE +1.2% AH.
Dec. 12, 2014, 4:52 PM
- At least nine firms hiked their Adobe (NASDAQ:ADBE) targets after the company beat FQ4 estimates, reported stronger-than-expected Creative Cloud net adds, and announced it's buying Fotolia for $800M. Shares made new highs today, and have now more than doubled since late 2012.
- "We remain above management’s guidance for Q1 as we believe guidance is conservative," says Bernstein's Mark Moerdler (Outperform). He expects Adobe to end FY15 with 6.1M CC subs (above the company's 5.9M target), and sees the base rising to 7.9M by the end of FY16 and 8.2M by the end of FY17.
- UBS' Brent Thill (Buy) thinks Adobe could deliver FY17 EPS of $4.00 (well above FY15 guidance of $2.05), and that a $100/share valuation would be justified under such circumstances given "high visibility, high teens/low 20s rev growth, and 20%+ sustainable EPS growth."
- Morgan Stanley's Jennifer Lowe (Market Perform) likes the sub growth, but also notes a mix shift towards point product sales is pressuring ARPU. "ABDE plans to add 20% more subs in FY15 than added in FY14, but the same amount of [annualized recurring revenue], suggesting that lower-cost SKUs will continue to lead the way. We believe price has been a primary concern for those holding off on Creative Cloud, and the challenge for ADBE will be striking the right balance between price and unit growth to maximize ARR."
Dec. 12, 2014, 9:16 AM
Dec. 11, 2014, 5:35 PM
Dec. 11, 2014, 4:49 PM
- Adobe (NASDAQ:ADBE) added 644K Creative Cloud subs in FQ4, growing the total base to 3.45M and yielding 1.146M net adds for the second half of FY14. Guidance was for CC sub growth in the second half to only "slightly exceed" 1M.
- CC sub growth is expected to decline Q/Q in FQ1 (partly due to seasonality), but then increase in each of the following three quarters. Digital media annual recurring revenue (ARR) is expected to follow a similar trend. Adobe aims to end FY15 with 5.9M CC subs (+70% Y/Y).
- Thanks to the shift to CC subscriptions from up-front licenses, standard guidance is light: Adobe expects FQ1 revenue of $1.05B-$1.1B and EPS of $0.34-$0.40 vs. a consensus of $1.1B and $0.39. FY15 (ends Oct. '15) guidance is for revenue of $4.85B and EPS of $2.05 vs. a consensus of $4.93B and $2.07.
- Creative revenue is expected to grow "significantly" in FY15. Marketing Cloud (online ad tech) revenue and bookings to respectively rise 25% and 30%. Document Services (Acrobat) is expected to grow slightly; Print and Publishing and LiveCycle/Web Conferencing are expected to decline slightly.
- Marketing Cloud revenue, also affected by a shift towards subscription revenue streams, rose 4% Y/Y to $330.2M. However, FY14 bookings were up over 30%. Document Services revenue fell 1% to $197.1M.
- $127M was spent on buybacks in FQ4. GAAP opex rose 2% Y/Y to $807.4M.
- ADBE +7.8% AH. FQ4 results, PR, datasheet, prepared remarks.
Dec. 11, 2014, 4:20 PM
- Along with its FQ4 beat, Adobe (NASDAQ:ADBE) announces it's buying Fotolia, a top marketplace for royalty-free photos and videos, for $800M in cash. The deal is expected to close in Q1 2015.
- Fotolia, which competes against the likes of Shutterstock (NYSE:SSTK) and Getty Images, claims to offer 34M+ photos and videos for sale. Naturally, Adobe plans to integrate Fotolia with Creative Cloud, and offer its services to the Creative Cloud base.
- The purchase follows Adobe's 2012 acquisition of digital artwork/portfolio-sharing site Behance, reportedly for ~$150M. More recently, Adobe launched a curated marketplace for Creative Cloud content (icons, vector graphics, etc.).
- ADBE +5% AH.
Dec. 11, 2014, 4:06 PM
- Adobe Systems (NASDAQ:ADBE): FQ4 EPS of $0.36 beats by $0.06.
- Revenue of $1.07B (+2.9% Y/Y) beats by $10M.
- Shares +0.75% AH.
Dec. 10, 2014, 5:35 PM
Oct. 6, 2014, 7:36 PM
- Adobe (NASDAQ:ADBE) has used an analyst briefing at its MAX user conference to provide new long-term financial targets (.pdf). The media software giant is aiming for FY15 (ends Nov. '15) EPS of $2.00 (below a $2.07 consensus), and FY16 EPS of greater than $3.00.
- With Adobe having absorbed most of the near-term revenue hit from its transition to a cloud/subscription model for Creative Suite, the company expects to post a 20% revenue CAGR from FY14-FY16. Digital Media and Marketing Cloud are respectively expected to see 20% and 25% revenue CAGR, and Marketing Cloud a 30% bookings CAGR.
- The company still expects to end FY14 with 3.3M paid Creative Cloud subs, up from 1.44M at the end of FY13. 60% of Digital Media revenue is expected to be recurring, up from 36% a year earlier.
- 30%+ Marketing Cloud bookings growth is expected in FY14. $1M+ contracts have grown 84% Y/Y over the first three quarters.
- Adobe is using MAX to launch a set of new and rebranded mobile apps for Creative Cloud subs. Among them: Photoshop Sketch, Photoshop Mix, Illustrator Line, Brush, Shape, and Premiere Clip. Clip is Adobe's first iOS video-editing app.
- Also unveiled: New PC Creative Cloud tools (inc. 3D printing features and Win. 8 touch support), the Creative Cloud Market content library (free to CC subs), and a public beta for the mobile Creative SDK.
Sep. 24, 2014, 9:39 AM
- With the Chinese government showing growing hostility towards U.S. tech companies (Microsoft and Qualcomm are two prominent examples), Adobe (NASDAQ:ADBE) has decided to shutter its Chinese R&D ops. The company's sales offices within the country will remain open.
- A source tells Reuters layoffs have begun, and will affect ~300 employees. The source also says Adobe's decision was affected by widespread piracy within China, and the company's transition to a subscription/cloud business model from up-front licenses.
- Adobe stopped releasing new versions of Creative Suite (sold through up-front licenses) last year to focus on Creative Cloud subscriptions, a move that was partly seen as an effort to combat piracy. The company's Asian sales fell 25% Y/Y in the August quarter to $148.2M.
Sep. 22, 2014, 4:33 PM
- Aviary provides an SDK used by many mobile developers to quickly add photo-editing capabilities to their apps - a basic SDK is provided for free, while premium versions go for $120-$275/month.
- The startup also provides ad services - brands can offer custom photo filters and stickers - and has developed popular photo-editing apps of its own (100M+ downloads are claimed).
- Adobe (NASDAQ:ADBE) hasn't provided an acquisition price. The media software giant says Aviary's SDK will be used to strengthen an upcoming Creative SDK for Adobe's Creative Cloud apps. The Creative SDK will provide 3rd-party mobile developers access to a variety of image-editing APIs previously available only to Adobe engineers, presumably with the goal of creating a stronger ecosystem for Adobe's PC apps.
- Blog posts: Adobe, Aviary
Sep. 17, 2014, 10:08 AM
- BofA/Merrill Lynch analyst Kash Rangan is out in defense of Adobe (ADBE -3.8%), reiterating his Buy rating and $80 target and saying the selloff following disappointing revenue guidance is an overreaction, noting that creative cloud subscriptions hit 502K in FQ3 and implies a better than expected H2 number.
- The analyst explains the shift of revenue, as a greater than expected percentage of marketing cloud bookings is falling under multi-year subscription agreements with ratable revenue recognition vs. an upfront perpetual license.
- Bookings appear to be solid, Rangan says, with a 40% increase in the number of customers signing deals greater than $500K.
- Also, ADBE maintained its FY 2014-16 goal of 25% revenue compound annual growth rate for marketing cloud, driven by a strong on- and off-balance sheet backlog.
Sep. 16, 2014, 5:35 PM
Adobe Systems Inc offers a line of software and services used by creative professionals, marketers, developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling operating systems.
Other News & PR