Adobe Systems Incorporated (NASDAQ: ADBE) stock fell over 3.3% 15 Jun, (as of 9:48 AM GMT-4; Source: Google finance) despite a decent performance by the firm
For the second quarter of its FY 18 Cash flow from operations $976 million while deferred revenue grew 27 percent year-over-year to approximately $2.63 billion. ADBE had repurchased approximately 2.6 million shares during the second quarter and returned $589 million of cash to stockholders.
ADBE in the second quarter of FY 18 has reported the adjusted earnings per share of $1.66, while delivered an adjusted revenue growth of 24 percent to $2.2 billion in the second quarter of FY 18.
Further, in the second quarter 2018, ADBE’s Digital Media segment revenue is of $1.55 billion, with Creative revenue growing to $1.30 billion and Document Cloud achieved record revenue of $243 million, which is 22 percent year-over-year growth. Digital Media Annualized Recurring Revenue (ARR) grew to $6.06 billion exiting the quarter, a quarter-over-quarter increase of $343 million. Creative ARR grew to $5.37 billion, and Document Cloud ARR grew to $694 million. Digital Experience segment revenue grew 18 percent to $586 million year-over-year growth.
In the Q2 2018, Operating income grew 33 percent and net income grew 62 percent year-over-year on a non-GAAP basis.
For the third quarter of 2018, ADBE expects third-quarter revenue of $2.24 billion
Meanwhile, ADBE is acquiring Magento Commerce, which is market leading commerce platform for $1.68 billion. However it is subject to customary price adjustments. The acquisition, which would put Adobe head-to-head with the likes of Salesforce.com, and presents a revenue opportunity of some $13 billion. Magento, already an Adobe partner, was bought in 2015 from eBay Inc. as part of a $925 million deal by a group of investors that included Permira, Sterling Partners, Longview Asset Management and Innotrac Corp. Permira carved out Magento in November of that year. Magento, whose clients include Canonand Rosetta Stone along with overlapping Adobe customers Coca-Cola Co. and Nestlé SA, handles more than $150 billion in gross merchandise volume. Under the terms of the deal, which is expected to close in the third quarter, Magento Chief Executive Mark Lavelle would continue to lead Magento’s roughly 700 workers as part of Adobe’s digital experience business