On Thursday, Adobe released its fourth quarter and fiscal year 2018 results after closing. As usual, the Photoshop software developer said its results broke quarterly and annual revenue records, but some of them were still below Wall Street's expectations.
The software giant reported fourth-quarter net profit of $678 million, or $1.37 a share. Non-GAAP earnings per share in the quarter were $183 million and revenue was $2.46 billion, up 23% from the same period last year. Wall Street expects earnings per share to be $188 and revenue to be $2.43 billion.
Adobe's earnings this year were mixed. The company reported revenue of $9.03 billion and earnings per share of $6.76, while analysts estimated revenue of $8.99 billion and earnings per share of $6.82.
This is Adobe's first financial report since acquiring Marketo, a marketing automation company, for $4.75 billion in October. Adobe said the acquisition increased its revenue by about $21 million in the fourth quarter.
Adobe usually lists revenue figures for its different cloud services and business sectors separately, but its current report only provides year-on-year growth indicators.
The company said revenue in the digital media sector, including Creative Cloud, was 23% higher than last year, while revenue from digital experience grew by 25%. Nevertheless, Adobe said it had an annual revenue of $430 million in the fourth quarter.
The company's chief executive, Shantanu Narayan (Shantanu Narayen), said in a prepared speech:
In terms of expected revenue, Adobe said it had a revenue target of $160 per share in the first quarter of next year, with revenue of $2.54 billion. Analysts expect it to earn at least $188 a share in the first quarter of next year, with revenue projected at $2.52 billion.