Sep. 30, 2013, 7:02 PM
- WPCentral reports Nokia will launch the Lumia 929, a 5" phone set to replace the Lumia 928 (4.5" display) in Verizon's lineup, in November. Meanwhile, The Verge reports Nokia is also working on the Lumia 525, a low-end, music-oriented phone meant to succeed the popular Lumia 520.
- The report follows one indicating Microsoft (MSFT) is working on Office Reader, a "Windows 8-style" Office app that supports PDFs, e-bboks, and other document types (could present new competition for ADBE's Acrobat unit), and plans to roll out add real-time collaborative editing support for the Office Web Apps. Strong collaborative editing support has long been a selling point for Google Apps.
- 26% of the 1,296 respondents to a Reuters online survey of U.S. shoppers said they plan to buy the $399 PlayStation 4 (SNE), and just 15% said they plan to buy the $499 Xbox One. Among those under the age of 40, Sony has a 41%-27% edge. Is the PS4's lower price tag mainly responsible, or is Microsoft still feeling a backlash from the used game restrictions and Internet verification requirements (now abandoned) it originally planned to have?
Sep. 22, 2013, 3:24 PM
- Gartner estimates that by 2017, the largest portion of corporate IT spend will be controlled by chief marketing officers (CMOs) rather than CIOs. CLSA's Ed Maguire views cloud CRM software kingpin Salesforce (CRM) as a major beneficiary of this trend, particularly following its $2.5B deal to acquire ExactTarget. Salesforce is adding ExactTarget's marketing automation software to its growing Marketing Cloud platform.
- Other ad software/tech names that benefit from a spending shift to CMOs include Adobe (ADBE), Responsys (MKTG), Marketo (MKTO), Constant Contact (CTCT), and Marin Software (MRIN). Adobe's own Marketing Cloud saw 28% Y/Y sales growth in the August quarter, and was recently bolstered by the $600M purchase of ad campaign software vendor Neolane.
- Like Salesforce, SAP is trying to create an end-to-end CRM platform aimed at CMOs. It recently bought top e-commerce software firm hybris for a reported $1.2B-$1.5B.
- Maguire also states Salesforce's data integration deal with Workday (WDAY), together with a prior deal with Oracle (ORCL), "reinforce [Salesforce's] prominence as a de facto CRM standard." He reports hearing of "at least one competitive engagement where a customer chose Oracle over Workday" because the latter's Salesforce integration wasn't good enough.
- Nomura feels likewise about Salesforce, and thinks its deals help negate the historical edge SAP has had in app integration (courtesy of its own apps, rather than partnerships). With two key ERP/HR software rivals striking deals with Salesforce, SAP is on the spot to strike one of its own.
Sep. 18, 2013, 9:11 AM
Sep. 17, 2013, 5:36 PM
Sep. 17, 2013, 5:17 PM
- Adobe (ADBE) spent $326M in FQ3 to repurchase ~7M shares (1.4% of outstanding shares).
- Deferred revenue totaled $734M at the end of FQ3, +6% Q/Q and reversing FQ2's 1% drop.
- Adobe declares "the overwhelming majority" of its customers are shifting from perpetual to term-based licenses, validating market acceptance of Creative Cloud.
- Document Services revenue (a portion of Digital Media revenue) fell 1.5% Y/Y to $182.7M thanks to shift towards Acrobat subscriptions. Document Services ARR rose 30% Q/Q to $109M, with total subscribers topping 1.3M after crossing 1M in FQ2.
- Print/publishing revenue was soft, falling 14% Y/Y to $46.7M (5% of revenue).
- Adobe also announces Project Mighty (a Bluetooth-equipped tablet stylus) and Project Napoleon (a digital ruler/guide) will be released in 1H14 (previous).
- R&D spend +10% Y/Y to $208.7M, sales/marketing spend +5% to $388.7M. CC/Marketing Cloud investments have much to do with the R&D growth.
- ADBE +5% AH
- FQ3 results, guidance/subscriptions
Sep. 17, 2013, 4:33 PM
- In addition to missing FQ3 estimates, Adobe (ADBE) is guiding for FQ4 revenue of $1B-$1.05B and EPS of $0.28-$0.34, below a consensus of $1.08B and $0.41.
- However, the company also states it added 331K paid Creative Cloud subs in FQ3, easily more than FQ2's 221K and FQ1's 153K, and leading the total base to grow to 1.031M. Enterprise CC adoption was stronger than expected.
- Creative annual recurring revenue (ARR) +53% Q/Q to $546M. Adobe expects to add "slightly more" CC subs in FQ4 than were added in FQ3, and is on track to top its FY13 Digital Media ARR target of $800M.
- The shift to cloud subscriptions from up-front licenses has the effect of making Adobe's near-term revenue and earnings trail its bookings and free cash flow, as cloud revenue is recognized over the life of a subscription. Thus, thanks to the CC shift, Adobe's recognized Digital Media revenue fell 16% Y/Y to $636.7M.
- Marketing Cloud (ad tech) had another strong quarter, growing 28% Y/Y (25% exc. Neolane) and reaching a $1B/year run rate. Total Digital Marketing revenue +18% to $311.7M.
- CC at 5PM ET. FQ3 results, PR.
Sep. 17, 2013, 4:02 PM
- Adobe Systems (ADBE): FQ3 EPS of $0.32 misses by $0.02.
- Revenue of $995.1M misses by $14.9M.
Sep. 17, 2013, 12:10 AM| Sep. 17, 2013, 12:10 AM
Sep. 16, 2013, 5:35 PM| Sep. 16, 2013, 5:35 PM
Aug. 26, 2013, 9:14 AM
Jul. 31, 2013, 5:26 PM
- Adobe (ADBE) has acquired Satellite, developer of a service that manages and improves the performance of analytics/media-tracking tags that are found on web sites, and used to interact with 3rd-party ad/analytics services.
- The purchase follows Adobe's June acquisition ad campaign management software firm Neolane, and should bolster its Marketing Cloud ad tech suite.
- Google launched a similar service, called Tag Manager, last fall.
Jul. 17, 2013, 11:48 AMFBR throws in the towel on Adobe (ADBE +1.5%), upgrading shares to Market Perform even though it thinks its thesis for an Underperform rating (Creative Suite share losses and slowing revenue growth) has played out. The firm grants some of Adobe's CS weakness was due to the Creative Cloud shift, but still thinks "a weakening end market" was also responsible. Shares have edged towards their 52-week high of $48.63. | Jul. 17, 2013, 11:48 AM
Jun. 27, 2013, 4:50 PM
Adobe (ADBE) responds to Salesforce's (CRM) deal to buy ExactTarget in a big way, agreeing to purchase French ExactTarget rival Neolane for $600M in cash. Neolane, whose acquisition comes a year after Adobe paid $400M to buy online ad buying platform Efficient Frontier, develops software that lets businesses integrate offline and offline data to created automated ad campaigns; the company claims 400 customers. On top of ExactTarget, Neolane competes with Marketo (MKTO), Responsys (MKTG), and Oracle-acquired Eloqua. The company will be added to Adobe's Marketing Cloud unit, which posted 18% revenue growth and 25% bookings growth last quarter.| Jun. 27, 2013, 4:50 PM | 3 Comments
Jun. 26, 2013, 9:41 AMTech ratings change roundup: 1) Mellanox (MLNX +2.7%) has been upgraded to Buy by Stifel. 2) NetGear (NTGR -4.6%) has been downgraded to Sell by Goldman. 3) ARM (ARMH +1.1%) has been upgraded to Buy by Benchmark, and to Overweight by Piper. 4) Rackspace (RAX +5%) has been upgraded to Outperform by Wells Fargo. 5) Splunk (SPLK +1.9%) has been started at Outperform by Wedbush. 6) Allot (ALLT +3.7%) has been upgraded to Outperform by Wedbush, and to Buy by Wunderlich. 7) Rubicon (RBCN -3.3%) has been downgraded to Neutral by JPMorgan. 8) Orbitz (OWW +4.1%) has been started at Buy by Ascendiant Capital. 9) Lam Research (LRCX -1.4%) has been upgraded to Buy by BofA/Merrill. 10) Adobe (ADBE +2.4%) has been upgraded to Buy by Jefferies. | Jun. 26, 2013, 9:41 AM
Jun. 20, 2013, 1:51 PM
When Adobe (ADBE -2.5%) announced it would stop releasing new versions of Creative Suite to focus on Creative Cloud subscriptions, many observers felt one of the company's motivations was to combat the widespread piracy of its costly media-editing apps. If that's the case, Adobe has more work ahead of it: the latest versions of its Creative Cloud apps have been pirated just one day after being released. Though Adobe requires a Web connection to initially install/license the apps, they can then be used in offline mode; Adobe tries to validate the license every 30 days.| Jun. 20, 2013, 1:51 PM | 1 Comment
Jun. 19, 2013, 10:23 AMBofA/Merrill upgrades Adobe (ADBE +6.1%) to Buy in the wake of its FQ2 EPS beat and strong Creative Cloud adds: the firm is upbeat about CC into 2015, and sees Adobe converting much of its Creative Suite base. Jefferies notes CC net adds of 221K beat a consensus of ~185K. Mentioned on the earnings call: the majority of paid CC subs are individual members; Adobe is evaluating new options for CC pricing (previous); "targeted promotions" could hurt CC ARPU in the near-term; and Adobe thinks its infrastructure and analytics tools will allow Marketing Cloud to remain differentiated in the face of new competition. Ad software rival Marketo (MKTO +10.1%) is in sympathy. | Jun. 19, 2013, 10:23 AM