Adobe Systems (ADBE 177.00, +2.00) has climbed 1.1% in pre-market after beating quarterly expectations and issuing solid guidance for the first quarter.
The software company reported above-consensus fourth quarter earnings of $1.26 per share on a 24.8% year-over-year spike in revenue to a record $2.01 billion, which exceeded estimates. The company's fourth quarter revenue growth rate was essentially in line with the company's full year growth rate.
Digital Media segment revenue totaled $1.39 billion while Digital Media Annualized Recurring Revenue increased $359 million quarter-over-quarter to $5.23 billion.
The Digital Media segment made up 69.2% of fourth quarter revenue, slightly up from 69.0% of revenue in the previous quarter. One year ago, the segment represented 67.1% of quarterly revenue.
Adobe Experience Could revenue grew 18.0% year-over-year to $550 million.
Going forward, Adobe expects that first quarter earnings will be roughly $1.27 per share, which is ahead of current market expectations. Revenue is expected to hit $2.04 billion, which matches current market estimates.
The positive outlook for the first quarter has not altered the company's outlook for fiscal year 2018. Adobe expects to report full year earnings of $5.50 per share. The revenue outlook was nudged higher, as the company expects to report sales of $8.725 billion after its previous forecast called for revenue of $8.70 billion. The company's revenue guidance is a touch below market expectations.