Shares of Adobe (ADBE) - Get Report were advancing 0.9% to $106 in after-hours trading on Thursday as the software company reported 2016 fourth-quarter results that were higher than Wall Street's expectations.
Adjusted earnings for the quarter were 90 cents per share, while revenue grew 23% year-over-year to $1.61 billion. Analysts surveyed by FactSet were looking for Adobe to post adjusted earnings of 86 cents per share and $1.59 billion in revenue.
Adobe's digital media segment, which includes the popular software Photoshop, saw revenue of $1.08 billion, exceeding analysts' projections of $1.06 billion. Digital marketing, a division that delivers a wide range of enterprise data services, saw its revenue grow 32% year-over-year at $465 million. Wall Street was looking for revenue of $482 million in the segment.
For 2016, Adobe posted adjusted earnings of $3.01 per share with $5.85 billion in revenue. Analysts surveyed by FactSet were looking for adjusted earnings of $2.98 per share and $5.84 billion in revenue.
The San Jose, CA-based company posted adjusted earnings of 62 cents per share on revenue of $1.31 billion during the fourth quarter of 2015. Digital media revenue was $990 million, while digital marketing revenue was $430 million in the quarter.
"Adobe's market-leading digital media and digital marketing solutions are revolutionizing how customers design and deliver exceptional digital experiences," said Adobe CEO Shantanu Narayen in a statement. "We enter 2017 with significant market momentum and strong technology tailwinds."
Adobe has seen continued growth in its subscription-based software offerings since it shifted away from a software license model. In the 2016 third quarter, Adobe was helped by a 41% jump in subscription revenue.
In its most recent quarter, subscription products comprised $1.26 billion of its total revenue, up from the $907.34 million in revenue those services represented during the same quarter last year.
About 5.41 million shares of Adobe traded hands on Thursday, above the stock's 30-day average volume of 2.85 million shares.