Adjusted earnings per share exclude one-time items but include stock-based compensation expense. Better-than-expected earnings were backed by strong demand for the companys Creative Cloud software tools like Photoshop, which added more subscribers. Also, continued growth of Adobe Document Cloud subscriptions and strong bookings for Adobe Marketing Cloud aided the earnings growth. Revenues Adobes revenues of $1.68 billion increased 4.6% sequentially and 21.6% year over year. Reported revenues surpassed managements guidance of $1.625 billion and were above the Zacks Consensus Estimate of $1.641 billion. Subscription comprised 82% of Adobes total fiscal first-quarter revenues, up 29.3% from the year-ago period. Products declined 8.8% year over year and contributed 11% to revenues, while Services & Support saw a 2.2% improvement and brought in the rest. Revenues by Segment Revenues from Digital Media Solutions jumped 22% year over year to $1.14 billion. Total Digital Media ARR (Annualized Recurring Revenue) grew to $4.25 billion at the end of the fiscal first quarter, reflecting an increase of $265 million and indicating strong growth in the Creative Cloud and Document Cloud businesses. The two major revenue contributors within the segment were Creative Cloud (CC) and Document Cloud (DC). Creative revenues were $942 million, up 29% year over year.
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