Hot Technology stock: Adobe Systems Incorporated (NASDAQ: ADBE)

Adobe Systems Incorporated (NASDAQ: ADBE) has reported the adjusted earnings per share of $0.94 in the first quarter 2017, beating the analysts’ estimates for the adjusted earnings per share of $0.87. The company had reported the adjusted revenue growth of 21.6 percent to $1.68 billion in the first quarter 2017, beating the analysts’ estimates for revenue of $1.65 billion. As a result, the stock rallied over 5.1% in the pre-market session on March 17th, 2017 (as of 9:01AM EDT; Source: Google finance)

Adobe Systems Incorporated has achieved a record $1.14 billion in Digital Media revenue in the first quarter and has exited the quarter with over $4.25 billion of Digital Media annualized recurring revenue, or ARR. The net ARR increase in Q1 was $265 million and was due to the continued strength in the Creative Cloud business. In Q1, the Creative Cloud ARR growth was due to the strong performance in the SMB segment with the Creative Cloud teams offering and international growth, as well as strong retention of existing subscribers. In Q1, the Document Cloud revenue was $196 million and the Document Cloud ARR grew to $493 million. Further, in December, ADBE has completed the acquisition of TubeMogul, a leader in demand-side video advertising and the company has achieved strong Q1 TubeMogul revenue. TubeMogul has added $32 million of revenue in Q1, which was $13 million above the target of $19 million

In February, in conjunction with the Cloud Signature Consortium, ADBE has unveiled the world’s first open cloud-based digital signature standard, available in any browser and on any device. The company has come up of new functionality in Adobe Sign that enables users to create end-to-end business workflows, such as advanced document routing, online collaboration, and Microsoft SharePoint integration. Adobe Sign now includes mobile tools, powered by Adobe Sensei, for scanning, reading, routing and signing documents.

Adobe Systems Incorporated has repurchased over 2.2 million shares during the first quarter and returned $238 million of cash to stockholders.

Adobe Systems Incorporated expects for the second quarter, the earnings per share to be $0.94, compared to the analysts’ expectation of $0.91, and the revenues for the second quarter of $1.73 billion, while analysts were expecting for $1.72 billion. In addition, ADBE expects to achieve approximately $290 million of net new Digital Media ARR in Q2, which represents both sequential and year-over-year growth in net new ARR achievement. ADBE expects Digital Media Q2 segment year-over-year revenue growth of approximately 24%, and Adobe Marketing Cloud year-over-year revenue growth of approximately 26%.

Adobe Systems Incorporated stock has already risen 42.27% in the last one year (source: Google Finance).

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