Not only did the the San Jose, Calif.-based maker of digital media and digital marketing software beat Wall Street's estimates, it also revealed an interesting acquisition.
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Adobe reported a profit of $73.3 million, or 14 cents a share, for its fiscal fourth quarter, which ended Nov. 28. Excluding one-time expenses and gains, the company earned 36 cents a share, topping the average Wall Street estimate of 30 cents, according to Thomson Reuters.
Revenue was $1.07 billion, ahead of the $1.06 billion average estimate from analysts.
Adobe, which has invested considerable amounts of money over the past couple of years to grow its digital cloud business, also said it acquired Fotolia, a privately held stock image and video company, for $800 million. The deal is expected to close in the current quarter.
An Adobe news release describes Fotolia as a leading marketplace for royalty-free photos, images, graphics and HD video, with 34 million images and videos.
Adobe says it plans to integrate Fotolia into its Creative Cloud subscription service, giving current and future subscribers a way to gain access to all of Fotolia's images and videos. Adobe sees this as a way to save its customers both time and money, while also making customers' design process faster and easier.
David Wadhwani, senior vice president of Adobe's digital media unit, said:
"The acquisition of Fotolia will reinforce Creative Cloud's role as the preeminent destination for creatives. Creative Cloud is becoming the go-to marketplace for the creative community to access images, videos, fonts and creative talent, through critical creative services like Fotolia and our new Creative Talent Search capabilities."
This deal shows that Adobe realizes digital marketing is the future. Research firms such as Forrester predict that the market for digital marketing will grow to more than $43 billion in the next two years.
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