Adobe Systems Inc. reported fourth-quarter earnings that increased year over year but fell short of analysts' expectations.
The software company posted net income of $678.2 million, or $1.37 per share, in the quarter that ended Nov. 30, up from $501.5 million, or $1.00 per share, in the three-month period that ended Dec. 1, 2017.
On a non-GAAP basis, EPS stood at $1.83, up from $1.26 in the year-ago period but lower than the S&P Global Market Intelligence fourth-quarter normalized EPS estimate of $1.88.
Revenue totaled $2.46 billion during the quarter, up from $2.01 billion, driven by strong subscription revenue, which increased to $2.18 billion from $1.70 billion in the fourth quarter of 2017.
Operating income was $720.5 million in the fourth quarter, up from $649.3 million in the year-ago period.
In fiscal 2018, the company booked net income of $2.59 billion, or $5.20 per share, up from $1.69 billion, or $3.38 per share, in the previous year. Revenue for the year totaled $9.03 billion, up from $7.30 billion in fiscal 2017.
The company also updated its revenue outlook for fiscal 2019 and now expects it to come in at about $11.15 billion. Adobe's initial estimate last month was for revenue growth of 20% for 2019. The revision reflects the company's acquisition of marketing software and solutions provider Marketo Inc., and currency rate-related changes.
Adobe expects non-GAAP EPS of about $1.60 for the first quarter of fiscal 2019 and about $7.75 for fiscal year 2019.