Adobe published its second quarter results on Tuesday, and the good news — that its revenue had risen by 27% — sent its stock up by 5%, reaching record highs.
The company reported continuing growth with its Creative Cloud offering which registered an increase of 35% in revenue during the months of March, April, and May 2017. Creative Cloud offers software and services such as Photoshop, Acrobat, and Final Cut Pro to designers, videographers, and other creative professionals on a monthly subscription basis.
Adobe’s Marketing Cloud also saw substantial gains, growing by 29%. The company is focusing this aspect of its business on mobile growth as well as securing long-term contracts with customers. It is also implementing some offerings from other aspects of its business, including TubeMogul, Artificial Intelligence, and Machine Learning.
Adobe Chief Financial Officer Mark Garrett told Investor’s Business Daily, “We’ve got great products and a market tailwind where everyone is trying to digitally transform their company and that is benefiting both the creative side of the business as well as the digital marketing side of the business.”
Most people know Adobe for its Acrobat line of services. But that division has been on the decline for years thank to the Document Cloud services which has consistently chipped away at the Acrobat customer base with its subscription model.
CNBC’s Mad Money host Jim Cramer thinks a new product that Adobe is bringing to market will make the company’s stock rise even higher. After an interview with Adobe chief Shantanu Narayen, Cramer praised the company’s Character Animator, saying, “This is what the world is going to come to. Adobe’s stock is going to go so much higher. Shantanu Narayen is a genius, he’s understated.”
Daniel White for TechFunnel.com.