Adobe jumped 8 percent Tuesday after the software company forecast a 20 percent upside for 2019 revenue, bolstered by recent acquisitions.
The stock rose above $257 in mid-morning trading, on pace for its strongest day in nearly a year.
At an analyst meeting during the company’s annual Max conference Monday, Adobe reiterated previous revenue estimates for fiscal year 2018 and issued 2019 revenue estimates that beat out Wall Street consensus.
The company is projecting 20 percent year-over-year revenue growth for fiscal year 2019 and roughly $1.4 billion of recurring revenue from digital media.
“Despite a few weeks of chatter about potentially light guidance in top line drivers like Digital Media ARR and Bookings, the company extinguished concerns,” analysts for Stifel said in a note published Tuesday.
Adobe completed its purchase of digital marketing company Marketo last month, and plans to close a deal for online marketplace Magento later this quarter — in what is expected to be another boon for revenue.
“Adobe remains one of the preeminent vendors in the Digital Transformation space, having been one of the earliest movers in each of its core markets,” Stifel said. “Combined with strategic M&A, the acceleration of Digital Transformation projects from the [Small and Medium Business] segment to the Enterprise has contributed to the expansion of Adobe’s Total Addressable Market.”
Adobe said Monday it now projects a total addressable market of $108 billion for 2021, an increase from $83 billion estimated for 2020.
The company also offered updates to product lines and and introduced new applications for drawing and augmented reality. Adobe announced Monday Apple’s iPad is getting a full version of Photoshop next year.
Shares of Adobe are up more than 70 percent in the last 12 months and are now within 10 percent of 52-weeks highs.