Adobe Inc (NASDAQ:ADBE) reported better-than-expected earnings for its second quarter, but issued weak third-quarter guidance.
The San Jose-based company reported Adobe achieved record quarterly revenue of $2.74 billion in its second quarter of fiscal year 2019, which represents 25 percent year-over-year growth. Diluted earnings per share were $1.29 on a GAAP-basis, and $1.83 on a non-GAAP basis.
ADBE also said Digital Media segment revenue was $1.89 billion, which represents 22% year-over-year growth. Creative revenue grew to $1.59 billion and Document Cloud achieved revenue of $296 million.
Digital Media Annualized Recurring Revenue grew to $7.47 billion exiting the quarter, a quarter-over-quarter increase of $406 million. Creative ARR grew to $6.55 billion, and Document Cloud ARR grew to $921 million.
Digital Experience segment revenue was $784 million, representing 34 percent year-over-year growth.
GAAP operating income in the second quarter was $750 million, and non-GAAP operating income was $1.05 billion. GAAP net income was $633 million, and non-GAAP net income was $901 million.
Cash flow from operations was $1.11 billion.
What’s more, Adobe repurchased approximately 2.5 million shares during the quarter. However, Adobe reported its Q3 revenue was down $2.8 billion
Said CEO Shantanu Narayen, "Adobe's continued momentum is being fueled by the explosion of creativity across the globe and the widespread business transformation agenda to deliver engaging customer experiences. With an innovative technology platform, exciting product roadmap and strong ecosystem of partners, we are well positioned for the second half of FY19 and beyond."
ADBE shares galloped $9.03, or 3.3%, to $285.81
