Earnings Review and Free Research Report: Adobe Reported Another Quarter of Record Revenue and Operating Profit

Research Desk Line-up: American Software Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 30, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Adobe Systems Inc. (NASDAQ: ADBE), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ADBE, following the Company’s posting of its second quarter fiscal 2017 financial results on June 20, 2017. The maker of the Creative Suite of products outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at: http://protraderdaily.com/register/.

Get more of our free earnings reports coverage from other constituents of the Application Software industry. Pro-TD has currently selected American Software, Inc. (NASDAQ: AMSWA) for due-diligence and potential coverage as the Company reported on June 22, 2017, its preliminary financial results for Q4 and fiscal 2017. Register for a free membership today, and be among the early birds that get access to our report on American Software when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ADBE; also brushing on AMSWA. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=ADBE

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Earnings Reviewed

For the quarter ended June 02, 2017, Adobe achieved record quarterly revenue of $1.77 billion compared to revenue of $1.40 billion in Q2 FY16. The Company’s revenue numbers surpassed analysts’ forecasts of $1.73 billion. Adobe stated that from a y-o-y currency perspective, FX decreased revenue by $19.2 million. The Company had $13.3 million in hedge gains in Q2 FY17 versus $3.6 million in hedge gains in Q2 FY16, thus, the net y-o-y currency decrease to revenue, considering hedging gains, was $9.5 million.

During Q2 FY17, Adobe’s digital Media segment’s revenue totaled $1.21 billion with Creative revenue growing to a record $1.01 billion. The Company stated that strong Creative Cloud and Document Cloud adoption and retention drove Digital Media Annualized Recurring Revenue (“ARR”) to $4.56 billion exiting the quarter, reflecting a q-o-q increase of $312 million.

In Q2 FY17, Adobe Experience Cloud achieved record revenue of $495 million, which represents 29% growth on a y-o-y basis. Additionally, the Company increased Creative ARR by $285 million during the reported quarter and exited the quarter with $4.04 billion of Creative ARR.

Adobe’s Document Cloud achieved revenue of $200 million in Q2 FY17 and Document Cloud ARR grew to $520 million exiting the reported quarter. Adobe stated that during Q2 FY17 Mobile data transactions grew to 57% of total Adobe Analytics transactions.

For Q2 FY17, Adobe reported net income of $374.4 million, or $0.75 per share, on sales of $1.77 billion, compared to $244.07 million, or $0.48 per share, in Q2 FY16. After adjusting for stock-based compensation and other effects, the Company recorded earnings of $1.02 per share ahead of Wall Street’s expectations of $0.95 per share.

Cash Flow

During Q2 FY17, Adobe’s cash flow from operations was $645 million and deferred revenue grew to approximately $2.07 billion. The Company repurchased approximately 2 million shares during the reported quarter, returning $266 million of cash to stockholders. Adobe’s deferred revenue grew to a record $2.07 billion, up 23% on a y-o-y basis. The Company’s ending cash and short-term investment position exiting Q2 FY17 was $4.93 billion.

In Q2 FY17, Adobe’s effective tax rate was 24% on a GAAP basis and 21% on a non-GAAP basis. The Company’s trade DSO was 46 days, which compared to 43 days in the year ago same quarter and 46 days in the previous quarter.

Outlook

In Q3 FY17, Adobe is targeting revenue of approximately $1.815 billion and net new Digital Media ARR of approximately $300 million. The Company is forecasting Digital Media segment y-o-y revenue growth of approximately 26%, Adobe Experience Cloud y-o-y revenue growth of approximately 25%. Adobe is expecting GAAP earnings per share of approximately $0.72 and non-GAAP earnings per share of approximately $1.00 in the upcoming quarter.

Stock Performance

On Thursday, June 29, 2017, the stock closed the trading session at $141.24, slipping 1.79% from its previous closing price of $143.81. A total volume of 2.61 million shares have exchanged hands, which was higher than the 3-month average volume of 2.58 million shares. Adobe Systems’ stock price skyrocketed 8.97% in the last three months, 36.11% in the past six months, and 49.63% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 37.19%. The stock is trading at a PE ratio of 49.08. At Thursday’s closing price, the stock’s net capitalization stands at $70.14 billion.

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