Investing.com – Shares of Adobe rose more than 5% on Friday, setting a new intraday high of $130.30, after the software company posted better than expected quarterly results on Thursday after U.S. markets closed.
Adobe Systems Incorporated (NASDAQ:ADBE) reported earnings of 94 cents per share on $1.68 billion of revenue compared to analysts’ expectations of earnings of 87 cents per share on $1.65 billion of revenue.
Strong creative cloud and document cloud adoption and retention drove Digital Media Annualized Recurring Revenue (“ARR”) to $2.35 billion, which represents a 265 million increase in revenue compared to the previous quarter.
Continued demand for its software packages, which includes illustrator and Photoshop, helped the software company boost subscriber growth, quarter-over-quarter.
CFO Mark Garrett said that “solid execution and business momentum combined with strong market tailwinds” had given the company “confidence in our ability to continue to deliver strong financial results.”
Adobe indicated in a prepared statement on Thursday, it expects current quarter earnings per share of “approximately 94 cents” and revenue of "approximately $1.73 billion". The software company’s forward guidance for both earnings per share and revenue topped analysts’ forecasts of $1.71 billion and 91 cents, respectively.
At its current price of $127.48, Adobe is up nearly 30% over the past twelve months.