Adobe Raises Financial Targets After 1Q Performance Beats Projections

By Maria Armental

Adobe Inc. reported record revenue for the quarter ended March 5, driven by higher demand during the coronavirus pandemic. Here's what you need to know:

PROFIT: Net income rose to $1.26 billion from $955 million a year earlier. On a per-share basis, profit was $2.61, or $3.14 as adjusted. Adobe had projected about $2.19 a share, or about $2.78 a share as adjusted, while analysts surveyed by FactSet expected $2.21 a share, or $2.79 a share on an adjusted basis.

REVENUE: Total revenue rose to $3.91 billion from $3.09 billion. Adobe and analysts projected about $3.75 billion.

OUTLOOK: Adobe raised projections for the year, saying it now expects $9.13 a share in profit, or $11.85 a share on an adjusted basis, and about $15.45 billion in revenue. It earlier projected about $8.57 a share in profit, or $11.20 a share as adjusted, and about $15.15 billion in revenue.

This quarter, Adobe expects to make about $2.09 a share, or $2.81 a share as adjusted, on about $3.72 billion in revenue. Analysts expected $2.02 a share, or $2.70 a share as adjusted, on $3.68 billion in revenue.

PANDEMIC: Adobe had pointed to strong demand, including for PDF and cloud-based, e-signature service Adobe Sign, driven by the digital boost tied to the pandemic. On Tuesday, Chief Executive Shantanu Narayen pointed to the record first-quarter revenue and said that Adobe was raising financial targets for the year "based on the tremendous opportunity across our business and our continued confidence in our global execution." The CEO said: "Adobe's Creative Cloud, Document Cloud and Experience Cloud have become mission critical to all customer segments--from students to individuals to large enterprises--across the world."

CFO TRANSITION: John Murphy, executive vice president and chief financial officer, intends to retire this year to spend more time with family and friends and focus on philanthropy, Adobe said Tuesday. Mr. Murphy will stay on as needed to help with the transition, the company said, adding that it would consider internal and external candidates.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

March 23, 2021 16:36 ET (20:36 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.