Adobe Impresses, Shares Undervalued
The wide-moat firm continues to post strong organic growth as demand from both consumers and enterprises remains robust.
Wide-moat
Total fourth-quarter revenue came in at $2.46 billion, up 23% year over year. Digital media revenue was up 22% from last year as the contribution from Creative Cloud, which grew 25% from last year to $1.45 billion, remains strong. It appears that while Adobe continues to benefit from the cloud transition on both the consumer and enterprise fronts, it has also displayed pricing power, given the lack of any significant competition. Plus, Adobe’s efforts to tap into emerging markets with its creative offerings is paying off.
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