Adobe Systems Inc. (NASDAQ: ADBE) reported its fiscal fourth-quarter financial results after the markets closed on Thursday. The company had $0.62 in earnings per share (EPS) on $1.31 billion in revenue, compared to consensus estimates that called for $0.60 in EPS on $1.31 billion in revenue. The same period from the previous year had $0.36 in EPS on $1.07 billion in revenue.
Digital Media annualized recurring revenue grew to $2.99 billion at the end of the quarter, an increase of $350 million. Creative annualized recurring revenue grew to $2.60 billion, an increase of $310 million driven by enterprise adoption and the addition of 833 thousand net new individual and team Creative Cloud subscriptions.
Adobe Marketing Cloud achieved revenue of $352 million with strong bookings growth and a stronger-than-expected shift in customer adoption to SaaS-based solutions.
During this quarter Adobe repurchased roughly 1.4 million shares for a total of $122 million.
Shantanu Narayen, president and CEO of Adobe, commented on earnings:
Adobe is driving digital experiences that are fundamental to the transformation of every global brand, government and educational institution. Our record revenue and strong momentum are a reflection of our industry-leading content and data solutions in Digital Media and Digital Marketing.
Mark Garrett, executive vice president and CFO, added:
Strong growth across key financial metrics reflect the amazing performance we’ve achieved in fiscal 2015. Our long-term financial targets, including a 20% revenue CAGR through fiscal 2018, show that the benefits of our move to the cloud are just beginning.
Cash flow from operations this quarter was $455 million, and deferred revenue grew to a record $1.49 billion. On the books, cash, equivalents, and short-term investments totaled $3.99 billion compared to the same period last year that had $3.74 billion.
Shares of Adobe closed Thursday down 0.7% at $88.96, with a consensus analyst price target of $93.87 and a 52-week trading range of $68.98 to $92.88. Following the release of the earnings report, shares were initially trading up 5% at $92.80 in the after-hours trading session.
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