The Strategist

Creative Cloud boosted Adobe's revenue


12/16/2016 - 14:39



Adobe Systems Inc. company, specializes in software development, reported a better-than-expected quarterly earnings thanks to increased demand for cloud service Creative Cloud, including Photoshop, Illustrator, and InDesign.



Max Kiesler via flickr
Max Kiesler via flickr
Revenue of a unit, which develops Creative Cloud, rose by 33 percent to $ 886 million.

Average regular income from sale of paid subscriptions amounted to $ 4.01 billion versus $ 3.70 billion in the previous quarter. This figure exceeded expectations of analysts, who forecasted the income at $ 3.97 billion, according to market research firm FactSet StreetAccount.

Over the past six quarters, Adobe has been reporting revenue double-digit growth, facilitated by the manufacturer’s transition to a subscription model of software distribution.

According to the company, forecast revenue in the first quarter of the next fiscal year will amount to $ 1.63 billion, below analysts' estimates of $ 1.65 billion, according to Thomson Reuters I/B/E/S.

Adobe's net income increased to $ 399.6 million, or 80 cents per share, in the fourth quarter ended December 2, from $ 222.7 million, or 44 cents per share, during the same period a year earlier.

Total revenue increased by 23.1 percent to $ 1.61 billion, and occurred better than analysts' forecasts of $ 1.59 billion.

Excluding one-time balance sheet items, the company earned 90 cents per share, beating forecasts at 86 cents.

Strong growth in financial performance of the company explains increase in demand for digital media. "All our business showed strong results in 2016, we met or exceeded all of our key financial targets for the year" - the release cites words of Executive Vice President and Chief Financial Director of the company Mark Garrett.

Adobe Systems Inc. is an American software development company specializing in products for graphic design and publishing. The most popular products are Adobe Reader and Photoshop. Headquartered in San Jose (CA).

source: businesswire.com




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