Adobe on Tuesday added to its already hefty 2017 gains after the software maker unveiled a bigger-than-expected rise in quarterly sales that reflected continued progress on growing revenues from its cloud-based software suite.
The California-based company behind products like Photoshop said its sales in the quarter ending June 2 climbed 26.7 per cent year-over-year to a record $1.77bn, beating Wall Street forecasts of $1.73bn.
Annualised recurring revenue from its digital media division, an important metric that gauges adoption and retention of Adobe’s cloud-based software, came in at $4.56bn, a touch higher than the $4.54bn that analysts were expecting and up $312m from the previous quarter.
“We’re excited about the strong business momentum we have as we enter the second half of fiscal 2017 and remain confident in our ability to drive strong revenue and earnings growth in the future,” said Mark Garrett, Adobe’s chief financial officer.
Net profits climbed to $374.4m from $244.1m from the same time in 2016. On an adjusted basis excluding certain items, earnings per share of $1.02 came in ahead of expectations of 95 cents.
The upbeat results sent Adobe shares rallying 4.4 per cent in extended trading. That would add to gains of 36.9 per cent for the year, as of the close of trade on Tuesday.
Adobe has been working to shift customers away from software purchased a single time and installed on individual machines towards recurring subscriptions billed at regular intervals.