Fri, Apr. 10, 7:35 PM
- Ahead of next week's NAB broadcast industry conference, Adobe (NASDAQ:ADBE) has previewed several new video tools for its mainstay Creative Cloud platform. The media software giant has also unveiled Web video enhancements to its Primetime TV distribution platform.
- Among the new video tools: 1) Project Candy, an app that lets users capture "production-quality" lighting and color palettes, and use them with Adobe's Premiere video editing software. 2) Character Animator, a tool that uses physics and face-tracking algorithms to animate 2D illustrations. 3) Premiere tools that take out unwanted pauses and jump cuts, and automatically shrink/stretch a video's duration without artifacts. 4) New facial mask and voiceover tools for Adobe's After Effects special effects software.
- The previews follow the launch of two more free iPad apps (aimed at growing Adobe's user base/mindshare): Slate, which lets users create "stories" using their pictures and interspersed text, and Comp CC, an app for creating Web, mobile, and print design layouts.
- Meanwhile, Adobe has received good reviews for its $15/month Document Cloud service and the revamped version of Acrobat (Acrobat DC) that underpins it. The Next Web likes DC's revamped/touch-friendly UI and ability to quickly convert scanned docs. PC World views Document Cloud's electronic signature integration as a killer app.
Wed, Mar. 18, 9:12 AM
Tue, Mar. 17, 5:38 PM
Tue, Mar. 17, 4:54 PM
- Adobe (NASDAQ:ADBE) added 517K Creative Cloud subs in FQ1, 28% more than a year ago and bringing the total base to 3.97M. The company had only guided for CC net adds to drop Q/Q from FQ4's 644K (due to seasonality).
- FQ2 guidance is light: Revenue of $1.125B-$1.175B and EPS of $0.41-$0.47, below a consensus of $1.18B and $0.48. Many enterprise tech firms have been dealing with intense forex pressures. CC net adds are still expected to grow Q/Q each of the next 3 quarters.
- Digital Media revenue rose 10% Y/Y to $702.8M; Creative ARR grew by $180M Q/Q to $1.79B, and Document Services (Acrobat/EchoSign) ARR by $37M to $297M ahead of the Document Cloud launch. Marketing Cloud (ad tech) revenue remain strong, rising 17% to $311.5M. LiveCycle/conferencing revenue fell 4% to $45.7M.
- $174M was spent to buy back 2.4M shares. GAAP operating expenses fell 1% Y/Y to $392.7M due to lower sales/marketing spend. Thanks to subscription growth, the deferred revenue balance rose 34% Y/Y to $1.18B.
- Adobe has dropped to $76.50 AH. With shares having gone into earnings near a high of $80.30, expectations were high.
- FQ1 results, PR, datasheet (.pdf), presentation (.pdf)
Tue, Mar. 17, 4:06 PM
Tue, Mar. 17, 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.
Mon, Mar. 16, 5:35 PM
Wed, Jan. 14, 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
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.
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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.
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