Adobe Inc (NASDAQ:ADBE) reported upbeat earnings for its second quarter, while sales fell short of expectations. The company also issued downbeat guidance for the third quarter.
The San Jose, Calif.-based company revealed record quarterly revenue of $3.13 billion in its second quarter of fiscal year 2020, which represents 14% year-over-year growth. Diluted earnings per share were $2.27 on a GAAP basis, and $2.45 on a non-GAAP basis.
GAAP operating income in the second quarter was $1.02 billion, and non-GAAP operating income was $1.34 billion. GAAP net income was $1.10 billion, and non-GAAP net income was $1.19 billion. Cash flows from operations proved $1.18 billion.
Said CEO Shantanu Narayen, "Adobe’s strategy to empower customers to create the world’s content, automate critical document processes and enable enterprises to engage with their customers digitally, drove record revenue in Q2."
In coming out with its financial figures Thursday, Adobe also released third quarter financial targets factoring current macroeconomic conditions, continued impacts of the pandemic, typical Q3 summer seasonality and its updated strategy for Advertising Cloud. Total revenue is projected at about $3.15 billion, while digital media segment revenue at approximately 16% year-over-year growth.
Adobe shares climbed $13.25, or 3.4%, at the open Friday to $400.92.
