Adobe CEO says record quarter is due to going after a 'much larger opportunity in the enterprise'

  • Adobe reported better-than-expected quarterly revenue and profit Thursday, driven by strength in its digital media business.
  • Revenue from Adobe's digital media business rose 29.2 percent to $1.39 billion.
  • The company has gotten a boost from the switch to web-based software subscriptions, as opposed to packaged-licensed software.
Shantanu Narayen, CEO, Adobe
Mark Neuling | CNBC
Shantanu Narayen, CEO, Adobe

Adobe CEO Shantanu Narayen said the company's record quarter was the result of revamped data services for businesses.

"What's changing actually is we're targeting a much larger opportunity in the enterprise," Narayen told CNBC's "Squawk Alley" Friday. "Thinking about not just how you do marketing and visitor acquisition, but thinking about that engagement in a deep and fundamental way."

Adobe reported better-than-expected quarterly revenue and profit Thursday, driven by strength in its digital media business, which houses its flagship product Creative Cloud.

But Narayen touted the companies push into enterprise and data analytics, which he called the "central nervous system" of any business.

"We've moved from just collecting that data to providing action and insight," he said.

Excluding certain items, Adobe earned $1.26 per share, compared to analysts' estimate of $1.16. Total revenue rose 25 percent to $2.01 billion, beating estimates of $1.95 billion.

Revenue from Adobe's digital media business rose 29.2 percent to $1.39 billion, beating analysts' estimate of $1.35 billion, according to FactSet.

The company has gotten a boost from the switch to web-based software subscriptions, as opposed to packaged-licensed software, and has said it will raise subscription prices starting in May.

"There are very few companies that have the profile that we have which is growing the top line and bottom line at the margins at which we have," Narayen said.

--Reuters contributed to this report.