Adobe Inc. reported a quarterly profit that was better than expected, in a sign that travel and other costs fell while the software maker’s employees are working from home during the coronavirus pandemic.
Profit, after some expenses, was US$2.45 a share in the period that ended in May, the San Jose, California-based company said Thursday in a statement. Analysts, on average, estimated US$2.34, according to data compiled by Bloomberg.
Adobe projected revenue of US$3.15 billion in the current quarter, missing analysts’ average estimate of US$3.27 billion, because of weak demand for the company’s Advertising Cloud product. Adobe said customer interest in its creative tools such as Photoshop is expected to remain steady. The company withdrew its annual forecast announced in December.
The software maker told investors in March that the coronavirus outbreak had created business uncertainty and reduced corporate marketing budgets, leading to weaker demand for its products. Thursday’s results showed the damage to Adobe’s business wasn’t as bad as feared with fiscal second-quarter revenue increasing 14 per cent to US$3.13 billion.
Chief Executive Officer Shantanu Narayen has spurred Adobe’s revenue and market value to record heights since he transitioned the company to cloud-based software in 2012. Before the pandemic and recession, Adobe’s torrid pace of growth was expected to slow, even as the company unveils a steady stream of new products to modernize clients’ technology systems and freshen mobile apps for consumers, designers and social media influencers.
Shares rose about three per cent in extended trading after closing at US$387.67 in New York. The stock has climbed about 18 per cent this year.
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