Adobe Systems Inc. (NASDAQ: ADBE) reported its most recent quarterly results after markets closed on Thursday. The company said that it had $0.94 in earnings per share (EPS) and $1.68 billion in revenue, versus consensus estimates from Thomson Reuters that called for $0.87 in EPS and $1.65 billion in revenue. The fourth quarter of last year had $0.66 in EPS and $1.38 billion in revenue.
Overall, subscription revenue totaled $1.38 billion and product revenue totaled $183.4 million, compared with last year’s $1.07 billion and $201 million, respectively.
During the quarter, the Digital Media segment revenue totaled $1.14 billion, with record Creative revenue growing to $942 million.
Strong Creative Cloud and Document Cloud adoption and retention drove Digital Media Annualized Recurring Revenue (ARR) to $4.25 billion.
The company repurchased approximately 2.2 million shares during the quarter, returning $238 million of cash to stockholders. Cash flow from operations was a record $730 million, and deferred revenue grew to approximately $2.1 billion.
On the books, cash, cash equivalents, and short-term investments totaled $4.65 billion at the end of the quarter, versus $4.76 last year.
Mark Garrett, Adobe executive vice-president and CFO, commented:
Adobe achieved record revenue, profit and cash flow in Q1. Our solid execution and business momentum combined with strong market tailwinds give us confidence in our ability to continue to deliver strong financial results. We remain bullish about our prospects for the rest of 2017 and beyond.
Shares of Adobe closed Thursday at $122.37, with a consensus analyst price target of $126.61 and a 52-week trading range of $87.25 to $123.55. Following the release of the earnings report, the stock was up 3.8% at $127.00 in the after-hours trading session.
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