Adobe Systems (NASDAQ: ADBE) started its fiscal 2017 in style: Some of its first-quarter results not only beat analysts' estimates, they set new all-time records for the software maker.
For the quarter, revenue leaped by 22% on a year-over-year basis to $1.68 billion. Adjusted net income rose by 42% to almost $472 million ($0.94 per diluted share).
On the bottom line, Adobe beat the average estimate of $0.87 in adjusted per-share earnings -- a figure that matched the company's own projections. Analysts' expectations for revenue, meanwhile, averaged $1.65 billion.
The company didn't hesitate to point out that it notched new quarterly records for revenue, profit, and cash flow from operations (which ballooned by 47% year-over-year to $730 million).
These days, the company derives the bulk of its revenue from subscriptions to its numerous software products, which include Acrobat, Photoshop, and Dreamweaver. In Q1, subscriptions comprised 82% of total top line. They were also responsible for nearly all of Adobe's revenue growth.
Adobe execs sounded a confident note when discussing the company's prospects for the near future. "Our solid execution and business momentum combined with strong market tailwinds give us confidence in our ability to continue to deliver strong financial results," said CFO Mark Garrett. "We remain bullish about our prospects for the rest of 2017 and beyond."
In the company's guidance for the current quarter, it estimated that it will book $1.73 in revenue, and net a per-share adjusted profit of $0.94 per share, which if realized would match the Q1 result.
Adobe has been a solid performer on the stock exchange of late. So far in 2017, its shares have risen by almost 19%; over the past year, they are up by nearly 39%.
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