Tue, Sep. 29, 6:25 PM
- BOX has used the first day of its annual Boxworks conference to unveil a platform for building 3rd-party apps that integrate with Box's cloud storage/file-sharing services. A free Developer version of the platform will be provided for testing and designing apps, and an Enterprise version for apps that are in production. The company claims over 1,600 apps have already been integrated with Box.
- Other announcements: 1) Box has launched Capture, an iOS app that helps field workers collect and share photos, videos, and documents. 2) Box now supports content previews and collaboration for HD video, DICOM medical images, and interactive 3D content. 3) Integration deals have been announced for Adobe's (NASDAQ:ADBE) Document Cloud and Autodesk's (NASDAQ:ADSK) A360 apps, as well as for DocuSign's electronic document-signing services. A Microsoft Office integration deal was announced in June.
- Box says it now has 40M+ registered users up from 39M+ at the end of July. It still clams 50K+ customers, including 52% of the Fortune 500 (some deployments are company-wide, some aren't).
- With Microsoft, Amazon, and a slew of others pricing rival solutions aggressively, Box has been trying to differentiate its offerings through their UI/ease-of-use, security/compliance features, integration deals and APIs, and industry-specific features. An extensive partnership with IBM was announced in June.
- Shares closed today just $0.61 above a post-IPO low of $11.69.
Fri, Sep. 18, 10:59 AM
- Down in after hours trading yesterday after beating FQ3 estimates, providing light FQ4 guidance, reporting healthy Creative Cloud subscriber growth, and announcing a management shakeup, Adobe (NASDAQ:ADBE) has turned positive this morning.
- No upgrades or downgrades have arrived. Analyst reactions to Adobe's numbers have been fairly positive, with many backing up Adobe's argument that subscription growth (both for Creative Cloud and other products) is depressing near-term quarterly numbers by pushing out revenue recognition. RBC (Outperform, $105 target) still sees FY17 (ends Nov. '17) revenue beating expectations.
- On the earnings call (transcript), Adobe stated it still expects Marketing Cloud bookings to rise 30% or more in FY16, and that it expects to end FY16 with a total deferred revenue + unbilled backlog balance of more than $3.5B. 54% of Creative Cloud subscriptions are said to be for the full suite, and 46% for individual apps.
- Adobe's FQ3 results, guidance/details
Thu, Sep. 17, 5:37 PM
Thu, Sep. 17, 4:45 PM
- Along with the results, Adobe (NASDAQ:ADBE) states Digital Media chief David Wadhwani is leaving to "pursue a CEO opportunity." Document Cloud chief Bryan Lamkin will assume his responsibilities. In addition, CTO Abhay Parasnis will now take responsibility for Adobe's security and research teams, and "drive the overall technology strategy, architecture, and innovation and integration roadmap for Adobe's cloud services." CFO Mark Garrett will now also be responsible for corporate/M&A strategy.
- Continuing a recent trend of light guidance, Adobe expects FQ4 revenue of $1.275B-$1.325B and EPS of $0.56-$0.62 vs. a consensus of $1.36B to $0.64. Adobe reiterates the transition from up-front licenses to Creative/Document Cloud subscriptions is pushing out revenue recognition, and states "larger engagements and longer implementation cycles" are pushing Marketing Cloud revenue into the deferred revenue balance and unbilled backlog.
- Adobe added 684K Creative Cloud subs in FQ3, up slightly from FQ2's 639K and bringing the total base to 5.33M. Creative annual recurring revenue (ARR) grew by $262M Q/Q to $2.29B. Document Cloud ARR rose by $28M to $357M.
- Adobe: "We are migrating existing customers to Creative Cloud, and are attracting large numbers of first-time customers. In addition, we are now migrating significant numbers of hobbyist customers who previously used Photoshop Elements and Lightroom on a perpetual basis to the Creative Cloud Photography subscription offering."
- Top-line/regional data: Digital Media revenue +24% Y/Y to $769.7M. Digital Marketing +20% to $402.5M, with $368.4M from Marketing Cloud (ad software). Print & Publishing -4% to $45.6M. Subscription revenue ($829.1M) now accounts for 68% of total revenue. The Americas were 57% of revenue, EMEA 29%, and Asia-Pac 14%.
- Financials: Thanks to lower G&A spend, GAAP operating expenses rose just 1% Y/Y to $780.7M. Also lifting EPS: $132M was spent on buybacks. The deferred revenue balance rose by ~$80M Q/Q to $1.31B. Adobe ended FQ3 with $3.7B in cash/short-term investments, and $1.9B in debt.
- Shares have fallen to $77.75 after hours.
- Adobe's FQ3 beat, PR, datasheet (.pdf), earnings slides (.pdf)
Thu, Sep. 17, 4:04 PM
Wed, Sep. 16, 5:35 PM
Wed, Sep. 9, 2:12 PM
- "We believe the future of television is apps," says Tim Cook (AAPL +0.1%) just before he unveils a next-gen Apple TV set-top. "The television experience has been virtually standing still while innovation in the mobile space has been racing ahead. Today, we are going to do something about that."
- In-line with rumors, the new Apple TV features an App Store, a new OS (called tvOS), Siri and gaming support, universal content search, and a revamped remote with a Siri button and glass touchpad. Siri is emphasized - among other things, it can be used to control content, navigate the UI, and pull up info related (and unrelated) to a show.
- The set-top directly squares off against Roku's hardware, Amazon's Fire TV, and devices running Google's Android TV, and indirectly against gaming consoles. Pricing (not yet announced) has been rumored to start at $149.
- The iPad Mini 4 has also been (briefly) announced: It's said to feature the iPad Air 2's internals in a smaller form factor, and starts at $399. The iPad Mini 2's price has been cut by $30 to $269; the Air and Air 2 still respectively start at $399 and $499.
- Microsoft exec Kirk Konigsbauer (NASDAQ:MSFT) appeared on stage at Apple's event, demoing the use of Office iOS apps on an iPad Pro for corporate viewers. The use of the Pro's multitasking features and Pencil stylus have been shown off.
- Continuing a theme of making nice with rivals, Adobe (ADBE -0.2%) exec Eric Snowden has also appeared, pitching creative pros on the ability to do advanced photo/document-editing on the Pro via Adobe apps.
- As expected, the 32GB Wi-Fi-only iPad Pro will sell for $799. 64GB (Wi-Fi) and 128GB (Wi-Fi/4G) models respectively go for $949 and $1,079. The Smart Keyboard and Pencil accessories will respectively go for $169 and $99. The Pro becomes available in November.
- Apple livestream. Live blogs: The Verge, Engadget.
- Earlier: Apple unveils 12.9" iPad Pro, new Watch finishes/accessories
- Update (2:27PM ET): A 32GB version of the new Apple TV set-top will sell for $149, and a 64GB model for $199; the devices launch in late October. The current Apple TV will continue to be sold for $69.
Tue, Aug. 25, 9:37 AM
- "We are now into the foothills of the revenue and margin reacceleration which should gain momentum going forward," writes Baird's Steven Ashley, upgrading Adobe (NASDAQ:ADBE) to Outperform while maintaining an $85 target.
- Much like RBC's Ross MacMillan, Ashley is optimistic about the ability of Creative Cloud to expand Adobe's addressable market. "The Adobe business model transition not only enhances customer lifetime value, it also expands the market by attracting new paying-customers, and perhaps most importantly is transformational from a customer point of view."
- He adds Adobe's Creative Cloud mobile apps "incentivize legacy CS6/CS5 customers to adopt CC," as well as bring more content to the cloud, bring in new customers, and boost renewal rates. ARPU (recently pressured by subscription discounts) is expected to bottom soon, before rising over the next 18 months.
- Shares are up strongly as the Nasdaq posts a 2.9% gain.
Tue, Aug. 11, 1:13 PM
- Believing growth will be better than expected and spending lower than expected, RBC's Ross MacMillan has upgraded Adobe (ADBE -0.2%) to Outperform, and hiked his target by $17 to $105.
- MacMillan thinks Adobe still has the potential to convert 3.6M-3.8M Creative Suite 6 users to Creative Cloud - the Creative Cloud base stood at 4.61M at the end of the May quarter. He also forecasts FY16 (ends Nov. '16) and FY17 opex growth will only be in the 7%-8% range (below Street estimates), and that Adobe Stock (stock photos, appears to be taking a toll on Shutterstock) and other new services will drive ARPU growth.
- He adds a survey of creative pros indicated 25% of those not yet using Creative Cloud plan to adopt it, with 60% planning to do so in the next 12 months. "We think ADBE is set to move from the mid stage of its model transition to the late stage, where revenue, EPS and [op. cash flow] accelerate. While metrics such as sub adds and [annualized recurring revenue] will remain relevant, we think investor focus will shift to accelerating fundamentals in the income statement..."
- Adobe is nearly flat, but that's more than can be said for many tech names on day the Nasdaq is down 1.5%.
Mon, Jul. 20, 11:01 AM
- Abhay Parasnis, most recently the COO enterprise mobile software vendor Kony and before that an exec at Microsoft, i2, Oracle, and IBM, has been named Adobe's (ADBE -0.4%) CTO and SVP of platform technology and services.
- Parasnis will "drive Adobe's technology strategy, architecture and innovation roadmap for its cloud services, focusing on integration of its three cloud services; providing a consistent customer experience via the cloud; and enabling the companys cloud-based go-to-market strategies." Adobe has been aggressively working to migrate on-premise software licensees to subscriptions featuring both on-premise and cloud apps.
Fri, Jul. 10, 6:27 PM
- Adobe (NASDAQ:ADBE) engineers and MIT computer scientists have developed Helium, a system that quickly replaces code written for older hardware with re-optimized code meant for newer hardware. MIT prof. Saman Amarsinghe: "We've found that Helium can make updates in one day that would take human engineers upwards of three months."
- Helium works by taking computational kernels from older binary code, lifting the original algorithms - something historically considered very difficult to do - and restructuring them as high-level representations that can be read in the image processing-focused Halide programming language. (research paper - .pdf)
- By doing so and subsequently re-optimizing the code, Helium is said to improve the performance of some Photoshop filters by 75%. The boost for less optimized programs such as Microsoft's IrfanView image editor is estimated to be 400%-500%.
- The advance could be of particular value for Adobe, given the age of many of its products. Photoshop was first released 25 year ago.
Tue, Jun. 16, 4:34 PM
- With a strong dollar and the rapid shift towards subscription sales from up-front license payments weighing, Adobe (NASDAQ:ADBE) has guided (.pdf) for FQ3 revenue of $1.175B-$1.225B and EPS of $0.45-$0.51, below a consensus of $1.25B and $0.54. Likewise, FY15 (ends Nov. '15) guidance is for revenue of $4.845B and EPS of $2.05, below a consensus of $4.88B and $2.08.
- 639K Creative Cloud subs were added in FQ2, +38% Y/Y and bringing the base to 4.61M. Creative annualized recurring revenue (ARR) rose 13% Q/Q to $2.02B.
- Segment/geographic data: Digital Media (Creative Cloud/Acrobat) revenue +8% Y/Y to $747.5M. Digital Marketing (Marketing Cloud/LiveCycle) +10% to $366.5M. Print/publishing +4% to $48.2M. The Americas accounted for 58% of revenue, EMEA 28%, and Asia-Pac 14%.
- Other data: Document Cloud ARR, boosted by the March launch of the $15/month Document Cloud service, rose 11% Q/Q to $329M. Marketing Cloud (ad tech) revenue rose 15%, and the platform's bookings are still expected to rise 30% in FY15. Subscription growth led the deferred revenue balance to rise 32% Y/Y to $1.23B. Subscriptions now make up 66% of revenue.
- Financials: Operating expenses (non-GAAP) fell by $1.2M Y/Y to $684.9M. On a GAAP basis, R&D spend totaled $208M, sales/marketing $427M, and G&A $130.2M. $200M was spent to buy back 2.6M shares. Adobe ended FQ2 with $3.4B in cash/short-term investments, and $1.9B in debt.
- ADBE -1% AH to $79.15.
- FQ2 results, PR, prepared remarks/slides (.pdf), datasheet (.pdf)
Tue, Jun. 16, 4:04 PM
Tue, Jun. 16, 11:02 AM
- Ahead of this afternoon's FQ2 report, Adobe (ADBE +0.6%) has announced its 2015 refresh for its mainstay Creative Cloud platform. The highlight is the launch of Adobe Stock, a stock photo service that's based on recently-acquired Fotolia, features 40M+ images, and is tightly integrated with various CC apps.
- Adobe's aggressive and flexible pricing options for Stock, which targets a $3B/year stock photo market, have drawn attention: CC subs can pay $10 for 1 image, $30/month for 10 monthly images (unused images get rolled over), and $199/month for 750 images. Stock photo rival Shutterstock (NYSE:SSTK) is selling off, much as it did when the Fotolia acquisition was announced.
- Updates for existing CC apps include: 1) The introduction of Illustrator's Artboards feature (lets users simultaneously work on multiple versions of an image) to Photoshop. 2) A fog/haze-removal tool for Photoshop and Lightroom. 3) The introduction of Adobe's Character Animator tool (animates 2D illustrations) to After Effects. 4) Major performance improvements for Illustrator.
- Meanwhile, Adobe has brought 4 of its iOS apps - Photoshop Mix, Brush CC, Shape CC, and Color CC - to Android. Two new iOS apps are also launching: Preview CC, a mobile app/Web design preview app, and Hue CC, a lighting/color scheme capture app for video projects.
- Two months ago: Adobe shows off new video tools, gets good Document Cloud reviews
Mon, Jun. 15, 5:35 PM
Tue, Jun. 2, 7:07 PM
- Mixamo provides tools for creating and modifying 3D characters, as well as creating related animations. It also offers pre-built 3D characters for use by designers. Adobe (NASDAQ:ADBE) has bought the company for an undisclosed sum.
- Adobe states Mixamo's technology will be integrated with Photoshop CC to "empower designers to create, customize, manipulate, rig and animate 3D content, as well as to take advantage of tens of thousands of high quality, turnkey 3D models."
- The company adds 3D scanners and more powerful computing hardware have boosted interest in 3D content creation, and suggests the inclusion of Mixamo's tools within Photoshop will make 3D more accessible for graphic designers.
- Previously: Adobe shows off new video tools, gets good Document Cloud reviews
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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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