Adobe Beat Earnings Estimates and Oracle Miss at the Closing Bell 🔔

by 29 Sep, 2021

Adobe Beat Earnings Estimates and Oracle Miss at the Closing Bell

Adobe

After the closing bell on Tuesday, September 21, Adobe, Inc. (#adobe) beat earnings estimates with its fiscal third-quarter 2021 earnings release. On the top line, revenues of $3.94 billion exceeded expectations of $3.89 billion. On the bottom line, adjusted earnings per share of $3.11 exceeded expectations of $3.01 per share.

President and CEO Shantanu Narayeni stated, “Adobe had another outstanding quarter as Creative Cloud, Document Cloud and Experience Cloud continue to transform storytelling, learning and conducting business in a digital-first world. Our talented employees, category-defining innovation and product leadership uniquely position us for continued momentum and success.”

We drove record revenues and strong profitability in the quarter, demonstrating our ability to succeed in a dynamic environment,” said John Murphy, executive vice president and CFO, Adobe. “Our operational rigor and data-driven insights enable us to execute while we continue to invest across massive market opportunities.”

Breaking down the headline number segment results, on a year over year basis, Digital Media revenue climbed to $2.87 billion and Digital Experience revenue came in at $985 million. Digital Experience subscription revenue was $864 million.

Looking ahead, with the massive opportunities across creativity, digital documents and customer experience management, Adobe is perfectly positioned to benefit from broad-based digital transformation.

Shares of Adobe have risen 10% this year and are up about 22% in the past three months.

Oracle

After the closing bell on Tuesday, September 21, Oracle (#oracle) missed earnings estimates with its fiscal third-quarter 2021 earnings release. On the top line, revenues of $9.73 billion exceeded expectations of $9.77 billion. On the bottom line, adjusted earnings per share of $1.03 exceeded expectations of $0.97 per share.

“Q1 results were excellent as constant currency revenue beat guidance by $100 million with all revenue segments exceeding forecast, and Non-GAAP earnings per share beating guidance by $0.08,” said Oracle CEO, Safra Catz.

“Oracle’s two new cloud businesses, IaaS and SaaS, are now over 25% of our total revenue with an annual run rate of $10 billion. Taken together, IaaS and SaaS are Oracle’s fastest growing and highest margin new businesses. As these two cloud businesses continue to grow, they will help expand our overall profit margins and push earnings per share higher.”

Breaking down the headline number segment results, on a year over year basis, Cloud services and license support revenue were up to $7.4 billion. Cloud license and on-premises license revenue fell to $813 million. Oracle’s hardware unit was down at $763 million.

Looking ahead, Oracle expects an outstanding increase in Oracle Cloud Infrastructure customer inquiries as both the Oracle Autonomous Database and Oracle MySQL with HeatWave technology have captured the technology high-ground in the cloud database business.

Shares of Oracle have risen 37% this year.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

 

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