When Adobe Inc. (NASDAQ: ADBE) released its fiscal fourth-quarter financial results after the markets closed on Thursday, the company said that it had $1.83 in earnings per share (EPS) and $2.46 billion in revenue. The consensus estimates had called for EPS of $1.88 on $2.42 billion in revenue, and the same period of last year reportedly had $1.26 in EPS and revenue of $2.01 billion.
In the most recent quarter, Adobe acquired Marketo, which added about $21 million of revenue in the fourth quarter.
Digital Media segment revenue grew 23% year over year, while Digital Experience segment revenue grew 25% in this time.
Deferred revenue grew $3.05 billion for the fiscal fourth quarter. Net new Digital Media annualized recurring revenue totaled $430 million in this time as well.
Looking ahead to the fiscal first quarter, the company expects to see EPS of $1.60 and revenue of $2.54 billion. The consensus estimates are $1.87 in EPS and $2.52 billion in revenue for the quarter.
Shantanu Narayen, president and CEO of Adobe, commented:
Adobe achieved record revenue of greater than $9 billion and delivered outstanding earnings performance in fiscal 2018. In 2018 we made significant investments across our product portfolio, entered new markets, and made strategic acquisitions which we believe will fuel continued top and bottom-line performance.
Chief Financial Officer John Murphy added:
We finished the year strong with record results across the board, meeting or exceeding all of our annual and quarterly targets which did not include Marketo. We’re excited to add Marketo and the expanded market opportunity it provides. We look forward to delivering strong revenue growth, accelerating earnings growth and healthy margin expansion during fiscal 2019.
Shares of Adobe were last seen down 5% at $236.30, in a 52-week range of $172.92 to $277.61. The consensus analyst price target is $291.26.
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