In the second quarter of 2020/21, Adobe performed well compared to the same period last year. This shows that the group's business had good momentum during this period. As a result, the company has seen a significant improvement in revenues over the quarter as a whole. Alongside its strong Q2-20/21 results, the company has unveiled better than expected guidance for the third quarter.
For the second quarter of 2020/21 (ending in early June), Adobe reported quarterly revenue of $3.84 billion. It reported 23% growth over the year to date period. This was slightly above Wall Street's expectations of $3.73 billion.
The publishing software company also did better in terms of earnings per share. For the quarter as a whole, adjusted EPS was $3.03 (excluding special items). This is an increase of 24% over the one-year period. In addition, it came in above market expectations of $2.82.
In the second quarter of 2020/21, the company saw its net profit rise significantly to $1.1 billion (or $2.32 per share). A year earlier, it was $633 million (or $1.19 per share).
Annualised recurring digital revenues (ARR) are estimated at 11.21 billion dollars. This represents an increase of $518 million over the quarter. This corresponds to an increase of 24%. It should be noted that ARR is a key indicator for the company. It provides a forecast of annual revenues based on subscriptions taken out.
Based on Adobe's best-in-class results for Q2-2020/21, the company says it had a strong quarter. On the back of this, the software company unveiled a solid outlook for the third quarter.
For the new quarter as a whole, the company expects to achieve revenues of $3.88 billion. This is higher than the market forecast of $3.83 billion. Also, the group expects earnings per share of 3 dollars for the quarter.
The market expects adjusted EPS of $2.90. In addition, the company is targeting growth in new annualised recurring digital revenues. The company expects to achieve $440 million in new annualised recurring digital revenue.
Founded in 1982 and based in California in the United States, Adobe is a computer company specialising in graphics software. It has also published video and audio editing software. The group has also produced numerous innovations in its sector of activity.
In addition, the company has a dynamic team. The company has more than 22,000 employees worldwide. In its fiscal year 2020 (ending on 27 November), Adobe generated revenues of 12.87 billion dollars.