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Adobe to Unveil New Experience Cloud Capabilities

Adobe will be introducing new Experience Cloud capabilities at its 2018 Summit, March 25-29 in Las Vegas, according to Shantanu Narayen, its CEO and president.

That “spectrum” of new capabilities will include “new Sensei-powered features that will use new algorithms to simplify complex tasks,” he said March 15 during an earnings call for Adobe’s first quarter (ended March 2). Sensei is Adobe’s artificial intelligence (AI) and machine learning platform.

Experience Cloud, Adobe’s set of cloud services for enterprise customers, was introduced by the company at last year’s Summit.

“We’ve long recognized that our Experience Cloud customers need more than just innovative products. They need a partner who can help them navigate the many challenges involved in digital transformation,” Narayen told analysts on the call March 15. Adobe has “made great strides in delivering new magic through Adobe Sensei, our artificial intelligence and machine learning framework across Creative Cloud, Document Cloud and Experience Cloud,” he said.

Continued strength in Adobe’s cloud offerings again helped the company achieve significant revenue growth in Q1 as the company got off to what Narayen called a “strong start” to its fiscal year 2018.

Total revenue grew 24%, to a record $2.1 billion from $1.7 billion a year ago. Of that, subscription revenue jumped to $1.8 billion from $1.4 billion, while product revenue slipped to $171.6 million from $183.4 million and services/support revenue dipped to $114 million from $114.4 million. Profit increased to $583.1 million ($1.17 a share) from $398.4 million (80 cents a share).

Experience Cloud revenue grew 16% from last year, to $554 million in Q1, with “strong bookings across” Adobe Marketing Cloud, Adobe Analytics Cloud and Adobe Advertising Cloud, Narayen said. “Key customer deals” included Braun, City National Bank, Expedia, Ford, the NFL, Rakuten, Samsung and T. Rowe Price, he said.

Experience Cloud performance in Q1 was “driven by success across our Analytics Cloud, Marketing Cloud and Advertising Cloud offerings, with emerging solutions such as Audience Manager, Campaign, Target and Media Optimizer solutions achieving strong results,” Adobe CFO Mark Garrett said on the call.

Digital Media revenue grew 28% to $1.46 billion, with Creative revenue growing to $1.23 billion and Document Cloud achieving revenue of $231 million, Adobe said.

Pivotal Research Group analyst Brian Wieser was “incrementally more positive about Adobe” after the company’s Q1 results were announced, he said in a research note March 16.

“We think that an array of trends including Facebook’s recently announced changes to its algorithm and the looming introduction” of the General Data Protection Regulation (GDPR) in Europe “reinforce the notion that web publishers (and brands) must increasingly control or otherwise improve their direct relationships with consumers,” Wieser said, adding: “This means increased investment in web experience, mobile app development, email marketing platforms and data management strategies. This should be positive for companies with software focused on marketing technology, including Adobe (along with Salesforce.com and scores of other smaller players in the sector).”
Adobe shares were up about 3% at $225.38 in trading the morning of March 16.