Apr. 24, 2014, 3:54 PM
- Apple (AAPL +8.4%), Google (GOOG -0.4%), Intel (INTC - unchanged), and Adobe (ADBE -1.9%) have settled an antitrust suit accusing them of creating illegal no-hire agreements.
- Terms are undisclosed for now. 64K employees had been collectively seeking $3B in damages, and antitrust rules could in theory triple that figure in the absence of a settlement.
- The settlement comes after PandoDaily unearthed a slew of e-mails from Steve Jobs, Eric Schmidt, and others pointing to the existence of no-hire deals.
- Separately, Google has denied media reports stating Glass is now publicly available. The company says it failed to edit an order page created for Glass' April 15 sale (thus giving the impression it's still available), and will be pulling the page shortly.
Mar. 26, 2014, 10:47 AM
- SAP (SAP +0.5%) is buying Fieldglass, a top provider of cloud software for obtaining/managing contingent labor and services. The company plans to combine Fieldglass' software with Ariba's cloud procurement offerings and its SuccessFactors' cloud HR products to "deliver a platform for businesses to manage their entire workforce both temporary and permanent staff."
- Terms are undisclosed. However, Bloomberg reported shortly before SAP issued a PR that the company would be announcing a $1B+ acquisition.
- The acquisition comes as SAP strikes a reseller deal with Adobe (ADBE -0.9%) related to the latter's Marketing Cloud online ad tech platform. Marketing Cloud (sales +24% Y/Y in the Feb. quarter to $267M, was just refreshed) will be packaged with SAP's Hana in-memory database and hybris e-commerce infrastructure software to marketers.
- Given Adobe bought marketing automation software vendor Neolane last year and folded its products into Marketing Cloud, the partnership might lower the odds SAP will make a bid for Marketo (MKTO -1.3%) or another marketing automation firm, as many have expected.
Mar. 18, 2014, 5:30 PM
- Adobe (ADBE) expects FQ2 revenue of $1B-$1.05B and EPS of $0.26-$0.32, largely favorable to a consensus of $990.4M and $0.27. FY14 (ends Nov. '14) guidance is for "relatively flat" revenue growth and EPS of $1.10 vs. a consensus for 0.6% growth and $1.12. Adobe's shift to recurring revenue streams has been pushing out revenue recognition.
- 405K paid Creative Cloud subs were added in FQ1 vs. 402K in FQ4 and 331K in FQ3; the total base is now at 1.84M. Creative Cloud's annualized recurring revenue (ARR) rose to $987M from $801M at the end of FQ2. Adobe is aiming for 3M paid subs and ARR of $1.6B by the end of FY14.
- Total digital media revenue (pressured by the Creative Cloud shift) fell 7% Y/Y to $641.1M. Digital marketing revenue rose 17% to $314.4M, fueled by a 24% increase in Marketing Cloud revenue to $267M (down from 38% growth in FQ4). Adobe is shooting for FY14 Marketing Cloud revenue and bookings growth of 20% and 30%, respectively.
- Opex rose 3% Y/Y, and $263M was spent on buybacks. The deferred revenue balance rose by $52M Q/Q to $881M. 52% of revenue is now recurring.
- Shares +0.7% AH. FQ1 results, PR, datasheet, prepared remarks.
Mar. 18, 2014, 3:47 PM| Comment!
Mar. 18, 2014, 12:10 AM
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Feb. 28, 2014, 6:35 PM
- Adobe (ADBE -1.8%) is providing $300M worth of free software licenses for Pres. Obama's ConnectEd education technology initiative. The products include Photoshop Elements, Presenter (video creation), Captivate (interactive learning), and EchoSign (electronic signatures).
- Aside from creating some good PR, the donation stands to increase the number of students and teachers comfortable using Adobe's software tools.
Feb. 24, 2014, 12:23 PM
- Two months after agreeing to buy cloud marketing automation software vendor Responsys for $1.5B, Oracle (ORCL +0.8%) has struck a deal to buy BlueKai, developer of a popular, cloud-based, data management platform (DMP) for online, offline, and mobile marketing data.
- Business Insider reports the purchase price is around $400M. AdExchanger reports a $350M term sheet was signed a month ago, but adds the price tag may have gone up since.
- Forbes states BlueKai, which competes against Adobe's (ADBE +1.1%) AudienceManager DMP, had 2013 revenue of $64M. The deal might pressure Salesforce (CRM +1%), which has been gobbling up cloud marketing software firms itself in an attempt to build an end-to-end platform, to acquire a BlueKai rival, given the company doesn't yet offer a DMP.
- Constellation Research's Ray Wang thinks BlueKai's mobile DMP solution is the startup's "crown jewel," and fills a major hole in Oracle's product line. AdExchanger observes Oracle could struggle with conflicts of interest for BlueKai's data exchange business (separate from its DMP), whose neutral stance towards 3rd-party cloud marketing platforms has been a selling point.
- Oracle says BlueKai will be integrated with both Responsys and Eloqua's cloud marketing offerings.
Jan. 29, 2014, 2:02 PM
- Facebook (FB -1.8%) is seeing a bit of profit-taking ahead of this afternoon's Q4 report. Shares are up 10% since the company posted a Q3 beat; they skyrocketed in the prior three months following a blowout Q2 report.
- Street commentary has been positive going into the report. Cowen has forecast total and mobile ad sales will respectively rise 58% and 50% Y/Y, and says its surveys have "consistently pointed to Facebook delivering a high ROI ad product that consistently bests other social peers."
- JPMorgan, a long-time bull, predicts 61% Y/Y total ad growth. The firm notes online ad agency Kenshoo saw Facebook ad spend among clients double Q/Q in Q4 on the back of a 66% increase in clicks, a 21% increase in cost per click (CPC), and a 10% increase in click-through rates (CTRs).
- Meanwhile, Adobe's (ADBE -0.4%) online ad tech unit (Marketing Cloud) has reported Facebook's clicks, CTR and cost per thousand ad impressions (CPM) respectively rose 125%, 365% and 437% Y/Y in Q4. CPCs are believed to have been flat.
- Facebook currently trades at 45x 2014E EPS excluding net cash/investments.
Dec. 20, 2013, 9:33 AM
- Oracle (ORCL -0.1%) is acquiring cloud marketing automation software firm Responsys (MKTG) for $1.5B, or $27/share, in cash. The price represents a 38% premium to Responsys' Thursday close. The deal is expected to close in 1H14.
- Oracle has already made several online/social media marketing software acquisitions in recent years, the largest being its $871M purchase of Eloqua. Responsys' products, like Eloqua's, will be added to Oracle's Customer Experience Cloud, which offers a number of cloud-based sales/marketing software products..
- Oracle is doubtlessly looking to better compete against Salesforce (CRM +0.5%), which just spent $2.5B to buy marketing automation software vendor ExactTarget. The deal fueled hopes Responsys or Marketo (MKTO) would be acquired as well. Marketo and Constant Contact (CTCT +4.2%) are trading higher in response to the deal.
- Adobe (ADBE) is also moving aggressively in this space; it recently bought French marketing automation vendor Neolane for $600M. Oracle, Salesforce, and Adobe, along with SAP and IBM, are each trying to profit from an ongoing shift in ad spend towards digital channels (inc. social media), and a shift in IT spend towards CMOs.
Dec. 13, 2013, 9:16 AM
Dec. 12, 2013, 5:34 PM
Dec. 12, 2013, 4:35 PM
- With its near-term results continuing to be pressured by the shift to Creative Cloud subscriptions from up-front Creative Suite licenses, Adobe (ADBE) is guiding for FQ1 revenue of $950M-$1B and EPS of $0.22-$0.28, below a consensus of $1.02B and $0.34. Likewise, Adobe forecasts flat FY14 (ends Nov. '14) revenue growth and EPS of $1.10, below a consensus for 7.8% growth and EPS of $1.60.
- On the other hand, with much of the revenue getting pushed out by the Creative Cloud shift set to be recognized in future years, Adobe expects to see a 20% revenue CAGR from FY14-FY16. The company is also targeting FY15 EPS of $2 and FY16 EPS of at least $3.
- 402K paid Creative Cloud subs were added in FQ4, up from 331K in FQ3, 221K in FQ2, and 153K in FQ1. The total base is now at 1.439M. Creative annual recurring revenue (ARR) rose 41% Q/Q to $768M, and total digital media ARR rose 39% to $911M.
- Thanks to both strong organic growth and the Neolane acquisition, Marketing Cloud (online/mobile ad tech) revenue rose 38% Y/Y to $316.2M (30% of total revenue). That represents an acceleration from FQ3's 28% growth.
- Deferred revenue rose by $94.7M Q/Q to $828.8M, and EPS was boosted by $405M in buybacks.
- CC at 5PM ET. FQ4 results, PR, datasheet, slides
Dec. 12, 2013, 4:06 PM
Dec. 12, 2013, 12:10 AM
Dec. 11, 2013, 5:35 PM
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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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