With its acquisitions of Magento Commerce and Marketo, Adobe has officially become the “only” one-stop shop for both consumer- and business-facing enterprises, CEO Shantanu Narayen told CNBC on Thursday.
“When you think about what Magento does, it really completely closes the loop with respect to everything we’ve been doing for [business-to-consumer] companies in terms of having the leading commerce solution, and that’s off to a great start,” Narayen told Jim Cramer in an exclusive “Mad Money” interview after earnings.
In its fiscal fourth quarter, the software giant generated year-over-year revenue growth of more than 20 percent for its digital media and digital experience segments and delivered slightly higher-than-expected top- and bottom-line results.
Magento, an open-source e-commerce platform on which businesses can build online marketplaces, exceeded Adobe’s internal revenue expectations in the few months since the deal closed, Narayen said.
Now, with the addition of Marketo, a software company that specializes in digital marketing automation, Adobe has become a “comprehensive platform” for all businesses to control their marketing streams, he told Cramer.
“When you think about Marketo and what it does with respect to [business-to-business], we’re now the only comprehensive platform that can help every single enterprise with … high-volume email campaigns, personalization across all channels, and driving, basically, from leads to revenue across B2B and B2C,” the CEO said.
On Thursday, Adobe raised its fiscal full-year guidance for 2019, adding to its initial boost from October. The company, which offers end-to-end creative and marketing solutions for both consumers and businesses, expects its digital media segment to grow by 20 percent year over year and its digital experience segment to grow by 34 percent.
According to Adobe, digital media refers largely to its Creative Cloud segment, which includes popular paid programs like Photoshop and Premiere Pro. Digital experience refers to its marketing and data services ecosystem, which Adobe is enhancing with artificial intelligence and machine learning capabilities.
Adobe’s stock rose 1 percent to $248.08 a share on Thursday before falling 1.24 percent in after-hours trading.