Photoshop maker Adobe beats revenue, profit estimates

 Photoshop maker Adobe beats revenue, profit estimates

(Reuters) - Adobe Inc beat analysts' estimates for quarterly profit and revenue on Tuesday, driven by growth in its digital media business that houses its flagship product Creative Cloud.

Shares of the company, known for its image-editing software Photoshop, rose 2.7% in after-hours trading.

Adobe is sharpening its focus on the fast-growing cloud business, a fiercely competitive market dominated by Microsoft Corp, Oracle Corp and Salesforce.

The shift to a cloud-based subscription has brought a more predictable revenue stream for Adobe by selling its software through web-based subscriptions, and not through the sale of packaged-licensed software.

The company expects to report revenue of about $2.80 billion in the third quarter, below analysts' estimates of $2.83 billion, according to IBES data from Refinitiv.

The San Jose, California-based company's revenue jumped 25% to $2.74 billion in the second quarter ended May 31.

Net income fell to $632.6 million, or $1.29 per share, in the quarter, from $663.2 million, or $1.33 per share, from a year earlier.

Excluding items, Adobe earned $1.83 per share, beating the average analyst estimate of $1.78.

(Reporting by Sayanti Chakraborty in Bengaluru; Editing by Maju Samuel)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Your guide to the latest cricket World Cup stories, analysis, reports, opinions, live updates and scores on https://www.firstpost.com/firstcricket/series/icc-cricket-world-cup-2019.html. Follow us on Twitter and Instagram or like our Facebook page for updates throughout the ongoing event in England and Wales.

Updated Date: Jun 19, 2019 03:05:36 IST