We’re ‘optimistic’ about our prospects amid trade tensions
Adobe President and CEO Shantanu Narayen said Tuesday he’s bullish on the company’s 2019 outlook — despite U.S.-China trade tensions that have rattled major indexes in recent trading days.
In an interview with Jim Cramer in San Francisco, the CEO said the software firm’s creative and enterprise businesses should be able to function without disruption.
“Our exposure to China in both of those is fairly minimal,” he told the “Mad Money” host. “I think if you look at what we’ve been able to accomplish in the long run and the tailwinds that we have, we continue to be really optimistic about Adobe’s prospects.”
Adobe is riding the secular trends of design and creativity, two areas that Narayen said “have never been more important.” People are creating content in a myriad of spaces, including for automobiles and retail experiences, he said.
The company on Tuesday announced that its digital media segment brought in $1.78 billion of revenue during its first quarter. That included $1.49 billion in its creative business, an increase of 22% year over year.
After shifting from a two-tier distribution channel to the cloud, Adobe recognized that other companies and industries would have to invest in a digital presence as well, Narayen said. That has given the company “credibility” to share its discoveries with other enterprises, while providing a platform that helps businesses monetize their digital presence, he added.
Adobe helps companies attract, engage and create an experience for customers, he said.
“Adobe is the content provider that enables all of these streams to be delivered with incredible content,” Narayen said. “Given design is more important, given mobile devices are every single place, that’s a tremendous tailwind.”
That also goes for industries looking to stave off potential disruption by Amazon, he continued.
“The need to transform is also front and center for every C-level executive,” Narayen said. “Given Adobe’s been through our own transformation and has software, they want to hear from us and they want to experience that same benefit that we have been able to see.”
Adobe said total revenue in its fiscal first quarter grew 25% year over year to total $2.60 billion for the period ending March 1.
Shares of the software company have gained more than 20% in 2019. The stock closed Tuesday up 1.6%.
WATCH: Cramer interviews Adobe CEO Shantanu Narayen
Disclosure: Cramer’s charitable trust owns shares of Amazon.com.
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