Adobe revenue and earnings come in slightly below 2012, but beat estimates
Adone Systems reported earnings for Q1 after the bell today, reporting revenue of just over $1 billion for the quarter, basically flat with 2012, as was gross profit. Operating and net income fell, however, on slightly higher costs.
Adobe’s results wet on the high end of its forecast, and the company’s stock was up .5 percent in after hours trading.
“Adobe’s Q1 momentum was driven by strong adoption of Creative Cloud and Adobe Marketing Cloud,” Shantanu Narayen, president and CEO of Adobe, said. “We have an amazing pipeline of innovation that we will deliver in the coming months, as well as plans to differentiate ourselves by further integrating our Cloud businesses.”
“We achieved a significant milestone with our transition to the Cloud in our first quarter with more than half of Adobe’s total revenue coming from recurring sources such as Creative Cloud subscriptions and Adobe Marketing Cloud adoption,” said Mark Garrett, executive vice president and CFO, Adobe. “In our Creative business, reported revenue from subscriptions exceeded revenue from legacy perpetual licenses for the first time.”
Adobe announced that they had increased the number of Creative Cloud subscribers by 405,000 during the quarter and that Creative annualized revenue grew to $987 million, and total Digital media annualized recurring revenue grew to $1.15 billion. Adobe has been moving away from a product purchase based model to a recurring subscription model with its products.