Adobe Inc. (NASDAQ: ADBE) reported its fourth quarter financial results after the closing bell on Thursday. The Company surpassed analysts’ earnings and revenue estimates, sending shares higher by 3.6% shortly after reporting.
Adobe reported earnings of USD 2.29 per share on record quarterly revenue of USD 2.99 Billion. Analysts anticipated earnings of USD 2.26 per share on revenue of USD 2.97 Billion.
The stronger-than-expected quarter was driven by strong growth across Adobe’s segments, allowing the Company to achieve a 21% overall revenue growth year-over-year.
Digital media revenue totaled USD 2.08 Billion, increasing by 22% year-over-year. Creative revenue reached USD 1.74 Billion and Document cloud revenue was USD 339 Million. Digital media annualized recurring revenue (ARR) grew to USD 8.4 Billion, representing a quarter-over-quarter increase of USD 539 Million. Creative ARR totaled USD 7.31 Billion and Document cloud ARR grew to USD 1.09 Billion.
Adobe’s Digital Experience segment reported revenues of USD 859 Million, representing a 24% growth year-over-year.
As for the full year, Adobe achieved a record annual revenue of USD 11.17 Billion during fiscal 2019, increasing by 24% year-over-year.
“Adobe’s phenomenal performance in Q4 capped a record fiscal 2019 with revenue exceeding USD 11 Billion,” said Shantanu Narayen, President and Chief Executive Officer of Adobe.
Moving forward into 2020, Adobe is forecasting earnings of USD 2.23 per share on revenue of USD 3.04 Billion for the first quarter. Meanwhile, for fiscal 2020, Adobe is projecting earnings of USD 9.75 per share on revenue of USD 13.15 Billion.
“Adobe delivered another year of strong revenue growth and expanding profitability resulting in record earnings,” said John Murphy, Executive Vice President and Chief Financial Officer of Adobe. “We are bullish about our opportunities and our ability to continue to deliver strong top- and bottom-line growth.”