Summary Over the past few years, Adobe has been building up its martech arsenal with significant acquisitions. The Marketo acquisition is expected to add to Adobe’s marketing-technology capabilities and will help expand its B2B platform while improving its customer experience. Adobe’s acquisitions are turning it into a single-stop shop for all marketing needs. Last quarter we were searching for answers to what Adobe (NASDAQ: ADBE ) was looking to acquire with its $6 billion cash reserve. This quarter it answered that question by making some big acquisitions. But first, the financials. Adobe’s Financials Adobe’s third quarter revenues grew 24% over the year to $2.29 billion, ahead of the market’s projections of $2.25 billion. Net income was $666.3 million, or $1.34 a share, compared with $419.6 million, or $0.84 a share a year ago. Adjusted EPS of $1.73 also was ahead of the Street’s estimated $1.69 per share for the quarter. By segment, revenues from the Digital Media segment came in $1.61 billion with Creative revenue growing to $1.36 billion and Document Cloud growing 21% to $249 million. Digital Media Annualized Recurring Revenue grew to $6.40 billion, growing by nearly $340 million over the previous quarter. Digital Experience segment revenue grew 21% to $614 million with Digital Experience subscription revenue growing 25% over the year. For the current quarter, Adobe is looking for revenues of $2.42 billion with an EPS of $1.87. The market was looking for revenues of $2.41 billion with an EPS of $1.86. Adobe’s Acquisitions Adobe recently made a few big acquisitions. In May this year, it announced the $1.7 billion acquisition of Magento Commerce. Magento’s Commerce Cloud brings digital commerce and order platforms for both physical and digital goods. Its Platform integrates digital commerce, order management, and predictive intelligence into a single commerce platform across a […]
Adobe Making Big Moves In The Martech Industry
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