Sorry I’m late to this, I wanted to write about it yesterday when it happened, but didn’t get a chance to. JD had some coverage, but I wanted to talk a bit about the numbers from Adobe. If you don’t know what I’m talking about, Adobe blew past analysts estimates for earnings (and even profits) for the third quarter and now the stock is up almost 12% today. So lets dig into the numbers.
Adobe had revenue of $602.2 million, which was at the very high end of what Adobe and analysts had estimated. So here’s how it breaks down.
- Creative Solutions – $328.1 million (54.5%)
- Knowledge Worker Solutions – $154.1 million (25.5%)
- Enterprise and Developer Solutions – $49.4 million (up from 42.8) (8%)
- Mobile and Device Solutions – $9.1 million (1.5%)
- Other – $61.5 (10.2%)
This is what always gets me. Obviously I am a big fan of Adobe, but I deal primarily with the Enterprise and Developer solutions, so these calls are always a wakeup call for me. Why? Because they only account for 8% of revenue in the company. Adobe is still a company that revolves around their tools. Studio and Creative Suite account for a whopping 54.5% of the revenue, so no one is betting the farm on Flex 2 over at Adobe, the big money remains rooted in the tools.
Now does this mean that Flex 2 isn’t important within the company or that enterprise is being ignored? Absolutely not, and revenue from that segment grew at a nice pace from last quarter. But it is still a very small slice of the pie, and the core of the company is still based around the tools and their strategy continues to revolve around that revenue stream.
A couple of interesting tidbits, they finally used Breeze for this conference call. I also noticed that they gave investors and analysts an invitation to attend MAX for one day. I wonder which day and who takes them up on that.
[tags]Adobe, ADBE, Wall Street[/tags]Tweet