Shares in Adobe Inc. failed to move in after-hours trading after the software company delivered solid first-quarter earnings and offered guidance close to analysts’ expectations.

For its first quarter ended Feb. 28, Adobe reported revenue rose 19%, to $3.09 billion, from a year ago. Net profit was $955 million, or $1.96 a share or $2.27 adjusted for costs such as stock compensation. Analysts had been predicting an adjusted profit of $2.23 per share on revenue of $3.05 billion.

Adobe’s Digital Media segment booked revenue of $2.17 billion, up 22% year-over-year, while Creative revenue grew to $1.82 billion and Document Cloud revenue came in at $3.51 billion. Digital Media annualized recurring revenue grew to $8.73 billion, up $400 million from the previous quarter.

“Adobe delivered strong revenue, earnings and cash flow in our first quarter,” John Murphy, executive vice president and chief financial officer of Adobe, said in a statement. “Our recurring revenue model and the real-time visibility we have into our business uniquely positions Adobe to manage through an uncertain environment.”

Although Adobe’s first quarter was solid, the company became the latest to warn of issues in the second quarter from the impact of the coronavirus.

For the second quarter, Adobe predicted total revenue of $3.175 billion and an adjusted profit per share of $2.35. Analysts had been predicting revenue of $3.22 billion on adjusted earnings per share of $2.33.

Adobe said that while it expected its revenue and earnings are relatively predictable as a result of its subscription-based business model, it expected to be hurt by enterprises deferring booking decisions, delaying consulting services implementation and reducing marketing spend because of the spread of COVID-19.

Also cited as potential impacts: consumers reducing spending in countries more adversely impacted by the coronavirus and software license revenue driven by channel partners.

“We delivered a record Q1 and our first $3 billion quarter,” said Adobe Chief Executive Shantanu Narayen. “Our strategy in light of the COVID-19 situation has been to ensure the well-being of our employees, serve our customers and focus on our long-term opportunity.”

Adobe shared were hammered in regular trading on a day the Nasdaq Composite dropped 9.4%. In regular trading Adobe shares fell 9.6%, to $285. Although Adobe did warn of potential coronavirus impacts in its second quarter, its guidance was close enough to analysts’ predictions that its share price didn’t move at all in after-hours trading.

Photo: Adobe MAX/Flickr