Adobe marks a million Creative Cloud subs with $995 million earnings
Tuesday, September 17, 2013 @ 5:27pm
| Adobe today reported financial results for its third quarter of fiscal year 2013, which ended August 30. Adobe achieved revenue of $995.1 million, within its targeted range of $975 million to $1.025 billion, with earnings per share of $0.16. Adobe exited the third quarter with 1,031,000 paid Creative Cloud subscriptions, an increase of 331,000 when compared to the number of subscriptions at the end of the second quarter. The company cited stronger-than-expected enterprise adoption of Creative Cloud as part of the rise in users.
Including revenue from its acquisition of Neolane, Adobe Marketing Cloud quarterly revenue was $254.9 million, representing 28 percent year-over-year growth. Excluding revenue from Neolane, Adobe Marketing Cloud year-over-year growth was up 25 percent.
"We exceeded one million subscriptions during Q3, demonstrating that the transition to Creative Cloud is happening sooner than expected," said Shantanu Narayen, president and chief executive officer of Adobe. "We successfully completed the acquisition of Neolane, adding a critical cross-channel campaign management solution to the Adobe Marketing Cloud, which will further extend our leadership position in digital marketing."
"Our customers are overwhelmingly choosing subscriptions instead of perpetual model licenses, which is accelerating our business model transition," said Executive Vice President and Chief Financial Officer Mark Garrett. "During Q3, 41 percent of our revenue was recurring -- and we exited the quarter with record deferred revenue on our balance sheet. These results are building a stronger, more predictable revenue model for Adobe which will drive higher long-term growth."
Adobe is not altering fourth quarter projections, or its estimate for the full year.