By Yasin Ebrahim
Investing.com - Adobe beat Wall Street on Thursday, reporting mixed quarterly results as its fiscal second-quarter profit topped estimates, but revenue fell short as slowing growth in its core digital media business, which includes the flagship Creative Cloud suite of software, weighed on performance.
Adobe Systems (NASDAQ:ADBE) shares gained 4.67% in after-hours trade following the report.
Adobe announced earnings per share of $2.45 on revenue of $3.13 billion. Analysts polled by Investing.com anticipated EPS of $2.32 on revenue of $3.16 billion.
Revenue from its digital media unit rose about 18%, to $2.23 billion, in the quarter, just shy of estimates of $2.25 billion, and down from a pace of 22% year-on-year.
“We drove record Digital Media net new ARR for Q2, highlighting how mission-critical creative and document solutions are in engaging remotely,” Adobe said. The company added that "given the macroeconomic environment, it significantly accelerated in Q2 its previously stated strategy of eliminating low-margin Advertising Cloud transaction-driven offerings."
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