Adobe Earnings Preview: Cloud Growth In Focus Yet Again

Cloud & Services IT Asset Management Resource Centre | 0 comments

by | June 16, 2015


Adobe is set to announce its fiscal Q2 2015 earnings on June 16th. (Fiscal year ends with November.) While the company delivered $1.109 billion in revenues in Q1, which was at the high-end of its targeted range of $1.05 billion to $1.10 billion, its non-GAAP earnings per share of $0.44 exceeded its guidance. However, these numbers failed to enthuse the market, which was expecting a higher growth rate. Adobe’s core cloud business continued to deliver results as cloud adoption remained robust across both its Creative Cloud offering and its marketing solutions. For Q2, we believe the growth trend in cloud adoption continued, which likely drove revenues for both the Creative cloud and marketing divisions. Nevertheless, we believe revenues from the LiveCycle and Connect business declined as that of the Print and Publishing business remained flat during the quarter.

Outlook For 2015 and Q2

Adobe has guided for revenues of $1.125 billion to $1.175 billion for the second quarter of fiscal 2015. It indicated GAAP EPS would be in the range of $0.20 to $0.25, and non-GAAP EPS between $0.41 and $0.47. It expects CC net new subscriptions and Digital Media ARR to grow sequentially in Q3 and Q4. However, it expects the LiveCycle and Connect business and the print and publishing business to remain flat in Q2 2015.

SOURCE: forbes.com

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