Adobe Systems (ADBE) reported earnings on Thur 17 March 2016 (a/h)

** charts before earnings **

** charts after earnings **

 Adobe Systems beats by $0.05, beats on revs; guides Q2 EPS in-line, revs in-line; guides FY16 EPS above consensus, revs above consensus :

• Reports Q1 (Feb) earnings of $0.66 per share, $0.05 better than the Capital IQ Consensus of $0.61; revenues rose 24.4% year/year to $1.38 bln vs the $1.34 bln Capital IQ Consensus.
  • Digital Media segment revenue grew by 33 percent year-over-year to a record $932 million, with Creative revenue growing 44 percent year-over-year to a record $733 million.
  • Strong Creative Cloud adoption drove Digital Media Annualized Recurring Revenue to $3.13 billion exiting the quarter, an increase of $246 million.
  • Adobe Marketing Cloud achieved strong bookings growth, and record revenue of $377 million that represents year-over-year growth of 21 percent.
• Co issues in-line guidance for Q2, sees EPS of $0.64-0.70, excluding non-recurring items, vs. $0.65 Capital IQ Consensus Estimate; sees Q2 revs of $1.365-1.415 bln vs. $1.39 bln Capital IQ Consensus Estimate.
• In Digital Media, we expect to add approximately $275 million of net new Digital Media ARR during Q2, with strong year-over-year Digital Media segment revenue growth.
• targeting approximately 17% year-over-year Adobe Marketing Cloud revenue growth in Q2, with continued momentum in bookings.
• Co issues upside guidance for FY16, sees EPS of approx $2.80 (Prior approx $2.70), excluding non-recurring items, vs. $2.76 Capital IQ Consensus Estimate; sees FY16 revs of Approx $5.8 bln vs. $5.74 bln Capital IQ Consensus Estimate.
  • Digital Media segment revenue growth of above 20% (Prior approx 20%)
  • Digital Media ARR approx $4.0 bln exiting 2016 (Prior approx $3.875 bln))
  • Marketing Cloud revenue growth of approx 20% (Reaffirm)
  • Marketing Cloud bookings growth of approx 30% *Reaffirm)
• Q3 Comments- in Q3 we expect a slight sequential increase in both total revenue and Digital Media ARR. We also expect Q3 Marketing Cloud revenue growth of less than 20% year-over-year due to the large amount of perpetual revenue in the year-ago quarter
• Q4 Comments- In Q4 we expect seasonally strong sequential growth in both total revenue and Digital Media ARR. And we expect Q4 Marketing Cloud revenue growth greater than 20% year-over-year.