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
Nov. 8, 2013, 5:00 AM
- A data breach at Adobe (ADBE) seems to be much larger than the company has disclosed, with password-security firm LastPass saying that it has found data belonging to 152M Adobe users on an underground Web site that cyber criminals visit.
- That makes the theft of the information, which includes email addresses, encrypted passwords and password hints, one of the largest ever.
- Until the latest revelations, Adobe had acknowledged that 41M accounts had been compromised since the security violation became public in early October.
Oct. 16, 2013, 5:15 AM
- Ireland's Finance Minister, Michael Noonan, intends to introduce a law that will prevent multinational companies registered in the country from remaining "stateless" in terms of their tax residency and avoid paying billions of dollars in taxes.
- The moves comes amid international criticisms of Ireland's laws, which have allowed Apple (AAPL) to pay levies of just 2% or less instead of the country's 12.5% rate.
- However, the legislation won't stop corporations from deploying the "Double Irish," which lets firms, including Google (GOOG) and Adobe (ADBE), use the differences in the U.S. and Irish tax codes to shift profits to low-tax jurisdictions.
Oct. 4, 2013, 3:58 AM
- Adobe (ADBE) has become the latest victim of a cyber-attack, with hackers gaining access to the encrypted credit card information of 2.9M customers.
- The infiltrators also obtained passwords and other data, although there's no indication that the attackers took unencrypted credit card numbers.
- They did steal the source code of some of Adobe's most widely used products.
- Adobe has been investigating the breach since since September 17. (Adobe blog post)
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
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