Time for a change, Adobe (NASDAQ: ADBE) CEO to step down as the stock dis on earnings results

Adobe (NASDAQ: ADBE) on Thursday said its chief executive of eighteen years, Shantanu Narayen, will step down and that its board had initiated a search for a successor.

The company separately announced a quarterly top- and bottom-line beat and issued current quarter guidance that was largely above expectations.

Shares of ADBE tumbled more than 8% in premarket trading Friday.

Top boss to step down

Narayen is an Adobe veteran, having joined the company in 1998 and promoted several times until finally taking on the helm of chief executive in December 2007. One of Narayen’s biggest moves was bundling the company’s various software products into a cloud-based subscription model.

Under Narayen, Adobe’s annual revenue has surged to a massive $23.77 billion from $3.58 billion.

“Over the coming months, I will be working with Frank Calderoni, our lead Director, and the Board of Directors to identify my successor and to ensure a smooth transition. I will stay on as Chair of the Board to support the next CEO just as John and Chuck did when I took on this role,” Narayen told employees in an email.