Adobe — whose quarterly results handily beat analyst expectations — is benefiting from the shift of marketing ad dollars online to social, search, display and video, said Adobe CEO Shantanu Narayen on CNBC's "Closing Bell."
In response to a question about marketers using Adobe products to reach users on Snapchat, Shantanu did not address that platform specifically, but said, "Video is certainly becoming the biggest category of where people want to spend their money." He added that the recently acquired TubeMogul ad tech platform is helping Adobe capture marketers.
For the first quarter of its fiscal year 2017, which ended March 3, the company reported quarterly earnings per share of 94 cents (non-GAAP) and revenue of $1.68 billion. Analysts had expected the company to post earnings per share of 87 cents on revenue of $1.65 billion, according to Thomson Reuters.
The stock shot up more to almost 4 percent following the report.
Adobe also raised its guidance for its fiscal second quarter results, forecasting earnings per share of 94 cents, up from from the 91 cents, and revenue of $1.73 billion, up from $1.72 billion.
"Amazing design that's built on deep data is making a huge impact — whether it's from who wish to create content for the next generation of storytelling as well as enterprises who wish to deliver a great experience," he said.
