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$ADBE raised its FY18 earnings targets, helped by the impact of the new U.S. Tax Cuts and Jobs Act, which decreases the U.S. corporate income tax rate from 35% to 21%. For 1Q18, Adobe reduced its GAAP EPS target and lifted its non-GAAP EPS outlook. GAAP effective tax rate is expected to be about 17% for 1Q18 and about 13% for Q2-Q4 FY2018 periods.
$ADBE announced that Mark Garrett, CFO and Mike Dillon, EVP & General Counsel will retire in 2018. Both of them will continue to serve Adobe until their successors are found. The Photoshopmaker has started an internal and external search to replace Garrett and Dillon.
$ADBE to do some segment changes beginning from 1Q18 reporting. LiveCycle and Connect businesses, previously reported in Digital Marketing segment, will be moved to a new segment called Publishing, which will include the current Print and Publishing segment products. Digital Marketing segment to be renamed as Digital Experience.
Software juggernaut $ADBE, which celebrated its 35th anniversary last week, reported that revenue hiked 25% to $2.01Bil in 4Q17 thus crossing $2Bil revenue in a quarter for the first time in its history. Profit rose 26% to $502MM or $1.00 per share, aided by the growth in Digital Media business. Non-GAAP EPS spiked 40% to $1.26.
$ADBE targets FY18 revenue to grow 20% to $8.7Bil with GAAP EPS of $4.40 and non-GAAP EPS of $5.50. Revenue for Digital Media is expected to grow 23%, Adobe Experience Cloud subscription to grow 20% and Adobe Experience Cloud total revenue to grow 15%. $ADBE reaffirmed 4Q17 revenue target of $1.95Bil, GAAP EPS of $0.86 and non-GAAP EPS of $1.15.
$ADBE's sales and marketing expense grew 14% in 3Q17. The company confirmed that in 2018, the incremental spend will be mainly in sales and marketing and R&D. Adobe added that sales and marketing expense will be increased to create an awareness about the Creative Cloud business and invest on the sales capacity on the digital marketing business.
For 4Q17, $ADBE targets revenue of approx. $1.95Bil, GAAP EPS of approx. $0.86 and non-GAAP EPS of approx. $1.15. For FY17, Digital Media segment is expected to grow about 26% and the growth in Adobe Experience Cloud business is estimated to be approx. 24%.
Revenue from Digital Media segment, which accounts for 69% of $ADBE's revenue, grew 28% in 3Q17, stemmed by the growth in Creative Cloud and Adobe Document Cloud businesses. Revenue from Digital Marketing, Adobe's second largest segment, rose 23%. Geographically, both Americas and EMEA grew 25%, and Asia grew 31% in the recently ended quarter.
$ADBE posted strong results in 3Q17, benefiting from the digital transformation across the globe. Both revenue and EPS exceeded the company's outlook. Profit soared 55% to $419.6MM or $0.84 per share on revenue of $1.84Bil, which rose 26%. Earlier, Adobe had guided revenue of approx $1.815Bil and EPS of about $0.72 for 3Q17.
$ADBE to personalize in-car experience by bringing in digital marketing into the car. Adobe Experience Cloud, which is already used by the 10 largest automakers in the world, will understand the drive time behavior, give personalized in-car content, and serve targeted audio ads. Adobe expects in-car digital services to open up new revenue sources.
$MSFT and $ADBE extend their partnerships around their cloud services Microsoft Teams and Adobe Sign. Microsoft Teams, which competes with Slack, will be the preferred collaboration service for the Adobe's cloud services. Adobe Sign will become the preferred e-signature tool for Microsoft. The first integrations are expected in the coming weeks.
$ADBE announced new voice analytics capabilities in Adobe Analytics Cloud that enable brands to deliver more customer experiences. Through Adobe Analytics Cloud, brands can capture and analyze voice data for all major platforms including $AMZN's Alexa, $AAPL's Siri, $GOOG's Google Assistant, $MSFT's Cortana and Samsung Bixby.
$ADBE said it acquired the SkyBox technology from VR software developer Mettle. The Skybox toolset, designed for post-production in Adobe Premiere Pro CC and Adobe After Effects CC, complements Adobe Creative Cloud’s existing 360/VR cinematic production technology. Mettle co-founder Chris Bobotis will be joining Adobe.