Adobe reaches record revenue on Q1 earnings beat

The Photoshop maker said first quarter subscription revenue was $1.79 billion.
Written by Natalie Gagliordi, Contributor

Adobe delivered solid first quarter financial results on Thursday as the company once again broke corporate revenue records.

The software giant reported fiscal first quarter earnings of $583 million, or $1.17 a share.

Non-GAAP earnings in the quarter were $1.55 a share on revenue of $2.08 billion, up 24 percent year-over-year.

Wall Street was looking for earnings of $1.44 a share on revenue of $2.05 billion.

Adobe continues to see successful revenue returns following its migration to subscription-based services. The Photoshop maker said subscription revenue was $1.79 billion, up 30 percent year over year. Product revenue was $171.6 million and services and support revenue came in at $113.98 million.

Broken out, Creative Cloud revenue reached $1.23 billion in Q1, while Document Cloud was $231 million. Meanwhile, revenue from Adobe's Digital Media unit overall was $1.46 billion and Digital Experience segment revenue was $554 million.

For the current quarter, analysts are looking for earnings of at least $1.51 a share on revenue of $2.14 billion. Adobe followed up with a revenue estimate of $2.15 billion.

"Our leadership in the large addressable markets we created, combined with Adobe's leveraged operating model, contributed to another record quarter in Q1," said Adobe CFO Mark Garrett.

Adobe recently announced that Garrett plans to retire in 2018 after the company names his successor. Garrett has been Adobe's finance chief since 2007 and is credited with leading Adobe's transition to a cloud-based subscription model.

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