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, 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 » »
Fri, Mar. 18, 9:15 AM
Thu, Mar. 17, 5:39 PM
Thu, Mar. 17, 4:38 PM
- In addition to beating FQ1 estimates, Adobe (NASDAQ:ADBE) has guided in its earnings presentation (.pdf) for FY16 (ends Nov. '16) revenue of $5.8B and EPS of $2.80, above a consensus of $5.74B and $2.76. FQ2 guidance is for revenue of $1.365B-$1.415B and EPS of $0.64-$0.70 vs. a consensus of $1.39B and $0.65.
- The media software giant also now expects to exit FY16 with Digital Media annual recurring revenue (ARR) on a $4B/year run rate, up from $2.88B at the end of FY15 and prior guidance of $3.875B.
- FY16 Digital Media revenue growth is now expected to top 20% (prior guidance was for ~20% growth). Marketing Cloud (ad software/services) revenue and bookings growth guidance is still respectively at ~20% and ~30%.
- Top-line performance: Digital Media revenue rose 33% Y/Y in FQ1 on the back of a 44% increase in Creative revenue to $733M. Document Cloud revenue grew a modest 3% Y/Y to $198.8M. Digital Media ARR rose by $250M Q/Q to $3.13B - $2.74B from Creative, $393M from Document Cloud - and is expected to grow by $275M in FQ2. Over 30% of Creative Cloud subs are said to be new to Adobe, and over 23M new Adobe IDs have been issued to date through the company's mobile apps (many of which are free).
Marketing Cloud revenue rose 21% Y/Y to $377M; growth is expected to slow to 17% in FQ2 due to tough comps. LiveCycle/Web conferencing revenue fell 37% to $28.9M.
- Financials: Boosting EPS: $133M was spent to buy back 1.5M shares. Subscriptions made up 77% of revenue, products (traditional software licenses) 15%, and services/support 8%. GAAP operating expenses rose 14% Y/Y to $877M, with $475M spent on sales/marketing, $237M on R&D, and $147M on G&A.
Subscription growth led the deferred revenue balance to rise 36% Y/Y to $1.61B. Adobe ended FQ1 with $4.1B in cash and $1.9B in debt.
- ADBE +7.9% after hours to $97.01, making new highs in the process.
- Adobe's FQ1 results, earnings release, datasheet (.pdf)
Thu, Mar. 17, 4:07 PM
Mon, Feb. 8, 2:37 PM
- Many tech stocks are seeing 6%+ losses as investors flee to safety yet again. The Nasdaq is down 3.4%, and the S&P 2.7%.
- As was the case on Friday following Tableau and LinkedIn's disappointing guidance, a slew of enterprise tech stocks are seeing big losses, with cloud software and security tech names well-represented on the casualty list.
- Also: Solar stocks are having another brutal day (TAN -6.7%) as energy stocks get routed amid fears Chesapeake Energy is close to bankruptcy. WTI crude oil is once more near $30/barrel.
- Enterprise software decliners: Adobe (ADBE -9.6%), Paylocity (PCTY -19.1%), Salesforce (CRM -9.9%), Workday (WDAY -12%), Guidewire (GWRE -12.5%), ServiceNow (NOW -11.5%), Zendesk (ZEN -13.8%), Paycom (PAYC -13.4%), Marin Software (MRIN -10.3%), Castlight (CSLT -8.4%), Cornerstone OnDemand (CSOD -12.1%), Atlassian (TEAM -13.2%), inContact (SAAS -9.6%), and Bazaarvoice (BV -14.5%).
- Enterprise security decliners: Palo Alto Networks (PANW -12.2%), FireEye (FEYE -9.8%), CyberArk (CYBR -11.5%), Proofpoint (PFPT -12.7%), Qualys (QLYS -8.9%), Imperva (IMPV -9.7%), Rapid7 (RPD -9.4%), and Barracuda (CUDA -8.4%).
- Solar decliners: SunEdison (SUNE -11.3%), SunPower (SPWR -8.8%), JinkoSolar (JKS -7.6%), SolarEdge (SEDG -7.9%), Yingli (YGE -7.1%), TerraForm Power (TERP -10.7%), and TerraForm Global (GLBL -9.2%).
- Other major decliners: Micron (MU -9.1%), Western Digital (WDC -10.5%), Arista (ANET -10.9%), Universal Display (OLED -10.6%), Rackspace (RAX -11.3%), Fitbit (FIT -8.7%), Nimble Storage (NMBL -11.3%), Sierra Wireless (SWIR -9.9%), Rocket Fuel (FUEL -9.8%), Knowles (KN -9%), Mitel (MITL -8.9%), and Alarm.com (ALRM -8.9%).
- Previously covered: Yelp, Cognizant, Tableau, Globant, Ambarella, European tech stocks
Fri, Feb. 5, 11:01 AM
- A long list of enterprise software and security tech names are off sharply after business intelligence/analytics software upstart Tableau (down 45.3%) reported slower-than-expected license revenue growth and issued below-consensus Q1/2016 guidance.
- Also possibly weighing: LinkedIn (down 39.6%), which derives a large % of its revenue from cloud-based recruiting and sales tools for enterprises, issued weak Q1/2016 guidance.
- Given the magnitude of the drops, margin calls and forced selling by funds could be playing a big role. The Nasdaq is down 2.2%.
- Tableau suggested its growth slowdown has to do with softening IT spend and a need to improve sales productivity, but analysts have raised questions about competition from the likes of Microsoft, Amazon, and Qlik. LinkedIn forecast a growth slowdown for its field sales hiring solutions business, while blaming European/Asian macro pressures. The company also noted its display ad business continues declining amid weak industry growth.
- Major enterprise software decliners include Splunk (SPLK -23.7%), Workday (WDAY -15.1%), Adobe (ADBE -7%), Zendesk (ZEN -15.2%), ServiceNow (NOW -13.6%), NetSuite (N -12.4%), Salesforce (CRM -11.2%), Paycom (PAYC -10.6%), Ellie Mae (ELLI -11.5%), Cornerstone OnDemand (CSOD -7.8%), Veeva (VEEV -7.7%), Ultimate Software (ULTI -9%), Luxoft (LXFT -7.5%), Manhattan Associates (MANH -8.5%), Box (BOX -6.6%), Guidewire (GWRE -13.6%), Demandware (DWRE -9.3%), Hortonworks (HDP -9.7%), and Tableau rival Qlik (QLIK -16.6%). The casualty list includes many cloud software firms, as well as several analytics software plays. Previously covered: New Relic, Atlassian.
- Major decliners among security tech firms: Palo Alto Networks (PANW -12%), FireEye (FEYE -8.9%), Rapid7 (RPD -8.6%), CyberArk (CYBR -8.3%), Proofpoint (PFPT -8%), Imperva (IMPV -8.3%), Fortinet (FTNT -6.9%), and Vasco (VDSI -5.1%). The selloff comes in spite of an FQ3 beat and in-line FQ4 guidance from Symantec, which has been losing share to various upstarts.
Dec. 11, 2015, 9:16 AM
Dec. 10, 2015, 5:36 PM
Dec. 10, 2015, 4:48 PM
- Adobe (NASDAQ:ADBE) has guided in its earnings presentation (.pdf) for FQ1 revenue of $1.3B-$1.35B and EPS of $0.56-$0.62 vs. a consensus of $1.33B and $0.62. FY16 (ends Nov. '16) guidance for revenue of $5.7B and EPS of $2.70 (issued in October) has been reiterated; consensus is at $5.75B and $2.79.
- However, Adobe has upped its FY16 Digital Media annualized recurring revenue (ARR - driven by subscriptions) growth target to $1B from an earlier implied target of $738M. It now expects to exit FY16 with $3.875B in Digital Media ARR, up from $2.88B (in Dec. 2015 currency rates) at the end of FQ4. Marketing Cloud (ad software/services) revenue and bookings are still respectively forecast to grow 20% and 30%.
Top-line performance: 833 Creative Cloud subs were added in FQ4, up from FQ3's 684K and FQ2's 639K, and bringing the base to 6.17M. Creative ARR rose 55% Y/Y to $2.5B. Document Cloud ARR rose 45% to $385M, with revenue rising 6% to $208.7M. Marketing Cloud revenue rose 7% to $352.2M, with "record bookings in Q4 that contributed to achieving our annual bookings growth goal of approximately 30 percent." Lifecycle/Web conferencing revenue fell 30% to $30.5M.
Subscriptions made up 69% of total FQ4 revenue, product sales (software licenses) 22%, and services/support 19%. Subscription growth led the deferred revenue balance to rise 29% Y/Y to $1.49B, and the unbilled backlog to grow to $2.89B. 60% of revenue was from the Americas, 27% from EMEA, and 13% from Asia.
- Financials: Boosting EPS: GAAP operating expenses rose a modest 6% Y/Y to $814M (compares with 22% revenue growth) after backing out restructuring/other charges. $409M was spent on sales/marketing, $214M on R&D, and $134M on G&A. $122M was spent to buy back 1.4M shares. Adobe ended FQ4 with $4B in cash and $1.9B in debt.
- Shares have risen to $93.37 after hours, making new highs along the way.
- FQ4 results, earnings release, datasheet (.pdf)
Dec. 10, 2015, 4:08 PM
- Adobe Systems (NASDAQ:ADBE): FQ4 EPS of $0.62 beats by $0.02.
- Revenue of $1.31B (+22.4% Y/Y) in-line.
- Shares +2.86%.
Dec. 10, 2015, 10:23 AM
- "We believe an acquisition of GoPro (NASDAQ:GPRO) would make sense for Apple (NASDAQ:AAPL); action cameras are uniquely positioned at the intersection of Apple’s smartphone, wearables, and multimedia offerings," writes FBR's Daniel Ives in a note about potential Apple buyout targets.
- Ives: "Additionally, GoPro’s new product cycles could open the door to areas where Apple’s competitors are investing heavily (e.g., drones, VR), and Cupertino has been playing catch-up. We also see strategic value in GoPro being integrated with Apple’s strong multimedia ecosystem (e.g., iTunes, Apple TV, etc.)."
- Media/ad software giant Adobe (ADBE - $44.4B market cap), enterprise cloud storage/file-sharing leader Box (BOX - $1.6B market cap), and EV/battery maker Tesla (TSLA - $30B market cap) are also named as potential Apple targets. "Box would give Apple an avenue into enterprise storage and enable it to expand its product tentacles (hardware/storage) into the enterprise cloud frontier ... Adobe would provide a nice pipeline into the enterprise ... Adobe’s Document Cloud/Marketing Cloud applications are helping enterprises grapple with the growth of digital marketing, proliferation of mobile devices in the enterprise, and IOT."
- The GoPro remarks come with the action camera leader down 82% from its Oct. 2014 high of $98.47, and sporting a $2.4B market cap. In other news, GoPro announced today it has added Apple Watch support for its iOS app.
- Recent GoPro coverage
- Update (11:48AM ET): GoPro is now up 8.9%. Also announced today: GoPro states its drone (due in 1H16) will be known as Karma. A teaser video has been released.
- Update 2 (2:30PM ET): GoPro is now up 14%. Given a short interest of 31.2M shares (47% of the float) as of Nov. 30, short-covering is likely playing an important role.
Dec. 8, 2015, 3:04 PM
- Pac Crest states its Adobe (ADBE +2.2%) checks came back positive ahead of the media software giant's Thursday FQ4 report. Deutsche has hiked its target by $20 to $110, while reiterating a Buy.
- Adobe is now up 26% YTD. Shares made a new high of $92.88 yesterday before retreating. An October selloff sparked by the company's light FY16 guidance proved short-lived, as bulls focused on Adobe's strong FY15-FY18 CAGR forecasts.
- In other news, Adobe has made both the iOS and Android versions of Lightroom free to use, furthering an effort to boost Creative Cloud subscriptions by luring mobile users with free apps. Lightroom mobile users wanting to sync their files/edits with Lightroom's PC and cloud apps will still need a CC subscription.
Oct. 7, 2015, 6:14 PM
- Adobe (NASDAQ:ADBE) narrowed the initial after-hours losses seen yesterday after the imaging/media software giant provided below-consensus FY16 sales and EPS guidance ahead of an analyst meeting, but nonetheless closed down sharply. Prior to the outlook, Adobe was barely $2 removed from a high of $87.25.
- Several analysts argued Adobe's top-line guidance isn't much to be worried about, given forex pressures, the impact of the cloud/subscription transition, and the fact Adobe expects strong revenue and ARR growth through FY18. On the other hand, some concerns were aired about Adobe's aggressive spending forecast: It expects 15% FY16 opex growth, and also a 15% opex CAGR through FY18.
- RBC's Ross MacMillan (Outperform, $100 target): “[I]mplied opex CAGR of ~15% seems high in a historic and absolute dollar context ... the good news is that we think the market will pay for higher growth and it’s clear that margin optimization is still in play for beyond FY18. Mgmt. is clearly more bullish on the opportunity and we think is trying to calibrate expense expectations to the upper boundaries of what might be required to drive growth."
- Citi's Walter Pritchard (Buy, target cut by $5 to $99): "Long-term guidance suggests 20% top-line growth and 30% EPS growth for FY15-18. We remain slightly above these ranges. As we expect the market to get over impact of FX quickly, the debate that is likely to persist is whether management will grow OpEx at the implied 15%+ rate from FY15-18 ... we note that management has never spent to guidance and we expect profitability still holds upside."
- Wunderlich's Rob Breza (Hold, $90 target) isn't as upbeat. "With approximately 77% of the model transition behind the company, we believe results should be more predictable. However, results continue to disappoint, which will likely have investors pausing. Inconsistent results over the past few quarters combined with a premium valuation and reduced estimates will likely negatively impact near- term performance until a more consistent performance record is established."
- Analyst meeting slides (.pdf)
Adobe Systems, Inc. provides digital marketing and digital media solutions. The company operates its business through three segments: Digital Media, Digital Marketing, and Print and Publishing. The Digital Media segment offers creative cloud services, which allow members to download and install... More
Industry: Application Software
Country: United States
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