Adobe beats Q1 estimates

The Photoshop maker said Creative Cloud revenue reached a record high this quarter, climbing 44 percent year-over-year to $942 million.

Adobe delivered solid first quarter financial results Thursday that were once again boosted by recurring revenue from Creative Cloud. The software giant reported fiscal first quarter earnings of $398 million, or 80 cents a share.

Non-GAAP earnings in the quarter were 94 cents a share on revenue of $1.68 billion, up 25 percent year-over-year.

Wall Street was looking for earnings of 87 cents a share on revenue of $1.65 billion.

Adobe continues to reap the benefits from its successful migration to subscription-based services. The Photoshop maker said Creative Cloud revenue reached a record high this quarter, climbing 44 percent year-over-year to $942 million. Adobe said Q1 Creative Cloud growth was fueled by the SMB segment and strong adoption of its Creative Cloud Teams offering.

Meanwhile, Adobe Marketing Cloud brought in $477 million for the quarter, an increase of 26 percent above last year. Document Cloud revenue was $196 million, driven by continued adoption of Acrobat subscriptions and ad-on services such as Adobe Sign. Revenue from Adobe's Digital Media unit overall was $1.14 billion.

"Adobe achieved record revenue, profit and cash flow in Q1," said Adobe CFO Mark Garrett. "Our solid execution and business momentum combined with strong market tailwinds give us confidence in our ability to continue to deliver strong financial results. We remain bullish about our prospects for the rest of 2017 and beyond."

For the current quarter, Adobe now projects revenue $1.73 billion. Analysts are looking for earnings of at least 91 cents a share on revenue of $1.72 billion.

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