Adobe Reports Sales That Top Estimates on Creative Software

(Bloomberg) — Adobe Inc. reported revenue that topped analysts’ estimates, signaling robust demand for the software maker’s cloud-based creative tools during the coronavirus pandemic.

Sales jumped 14% to $3.23 billion in the period ended Aug. 28, the San Jose, California-based company said Tuesday in a statement. Analysts, on average, estimated $3.16 billion, according to data compiled by Bloomberg.

Chief Executive Officer Shantanu Narayen has tried to continue Adobe’s rapid pace of growth despite the company’s newfound status as one of the world’s highest-valued cloud software makers. After years of acquiring businesses to bolster its marketing and customer-experience capabilities against rival Salesforce.com Inc., Adobe has acknowledged that corporate interest in some elements of that product suite has waned. The software maker said it will focus on higher-value customers that adopt multiple offerings, and has decided to leave a part of the advertising-technology market. In the meantime, the maker of Photoshop continues to invest heavily in creating new tools for creative professionals and hobbyists.

Sales of the company’s creative offerings increased 19% to $1.96 billion in the quarter. During the pandemic there has been more demand for products that help workers do their jobs remotely. Adobe’s Document Cloud has benefited from that dynamic, with revenue increasing 22% to $375 million.

The company’s shares climbed about 2% in extended trading after closing at $497.67 in New York. The stock has jumped 51% this year.

Fiscal third-quarter profit, excluding some items, was $2.57 a share. Analysts were looking for $2.41.

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