Adobe has just announced strong sales for their first quarter fiscal year 2018, with a 24% year-on-year jump in revenue to US$2.08 billion. Their operating income grew 50%, while net income grew 46% year-on-year on a GAAP (Generally accepted accounting principles) basis. (On a non-GAAP basis, operating income grew 43% and net income grew 64% year-on-year.)
Digital Media segment revenue was US$1.46 billion, with Creative revenue growing to US$1.23 billion and Document Cloud reaching231 million. Approximately 1.6 million shares have been bought back during the quarter, with Adobe releasing about US$301 million in cash to stockholders.
Bloomberg thinks that part of that could be from new subscribers in United States, Canada and Mexico taking up plans early to avoid the price hike forecast for next month (April 16th). Adobe also disclosed that revenue was boosted by subscribers coming off discounted plans and buying multiple applications.
Adobe has a 2018 profit forecast of US$6.20 per share as they attempt to seek growth through its digital marketing unit, offering new tools for advertisers. Earnings for the current quarter is expected to be US$1.53 per share on revenue of US$2.15 billion.
Sources: Adobe Newsroom, Bloomberg Technology
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