Adobe Systems Incorporated (NASDAQ:ADBE) released the earnings results from its most recently completed quarter after closing bell tonight. The company posted adjusted earnings of 36 cents on revenue of $1.07 billion for the fourth fiscal quarter.
Analysts had been expecting earnings of 30 cents per share on $1.06 billion in revenue. Diluted GAAP earnings per share were 14 cents, compared to 13 cents in the same quarter last year. In last year’s fourth quarter, Adobe Systems had $1.04 billion in revenue.
Key metrics from Adobe Systems’ earnings report
Adobe management had guided for revenue of between $1.025 billion and $1.075 billion, putting the actual result toward the high end of that range. The company added 644,000 net new subscribers for its Creative Cloud during the quarter.
Adobe Systems reported annualized recurring revenue from its Creative segment rose to $1.676 billion, while recurring revenue from Digital Media rose to $1.947 billion. Revenue from Adobe Marketing Cloud was $330 million as the company saw a record number of bookings in the fourth quarter.
Deferred revenue hit a new record of $1.155 billion, and the company’s unbilled backlog rose to about $1.7 billion. Adobe reported that 66% of its fourth quarter revenue came from recurring sources, compared to 44% in last year’s fourth quarter.
Adobe’s full year results
For the full fiscal year, Adobe Systems reported $4.147 billion in revenue and GAAP earnings of 50 cents per share. Full year non-GAAP earnings were $1.29 per share.
The company reported the addition of more than 2 million subscriptions for Creative Cloud in the full year and more than $1 billion in growth in its net new Digital Media recurring revenue. Adobe Marketing Cloud saw a new record high of $1.17 billion in annual revenue and record annual bookings that were higher than management’s target of 30%.
Adobe to acquire Fotolia
Along with the fourth fiscal quarter earnings report, Adobe Systems also announced plans to acquire stok content marketplace Fotolia. The company plans to integrate Fotolia into Creative Cloud and has agreed to pay about $800 million in cash to buy it.
Fotolia offers royalty-free photos, images, graphics and HD videos. After Adobe Systems folds the company into Creative Cloud, subscribers will be able to access and buy more than 34 million videos and images, thus making the design process easier for subscribers. In addition to making Fotolia’s content available to Creative Cloud subscribers, Adobe will also keep operating it as a standalone stock service that anyone can access.
Shares of Adobe Systems Incorporated surged by nearly 7% in after-hours trading.
