Adobe share price slips as Creative Cloud subscribers miss expectation

 
Lynsey Barber
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Subscribers to Adobe's Creative Cloud fell short (Source: Getty)

The figures

Adobe's profits climbed 80 per cent to $84.9m , or 17 cents per share and 44 cents per share on a non-adjusted basis, in the first quarter to February. That was from revenue of $1.11bn which grew 11 per cent on the same quarter last year.

Shares fell three per cent in after hours trading despite the figures beating analysts expectations.

Why it's interesting

Adobe has moved to a subscription-based model for its creative suite of tools such as Photoshop and Illustrator.

Those number grew 28 per cent on the same quarter in 2014, generating revenue of $713.4m, up 52 per cent on last year.

Adding 517,00 new subscribers to Creative Cloud to bring total subscribers to 3.97m was shy of forecasts of 575,000 however.

What Adobe said

"Adobe Marketing Cloud and Creative Cloud continue to be growth engines for Adobe. We are excited about today's announcement of the Adobe Document Cloud, which brings innovative new capabilities, including built-in e-signing, to millions of customers, said president and chief executive Shantanu Narayen.

In Short

While the money was, well, on the money, subscriber growth disappointed making it more difficult to hit its year-end target of six million subscribers.

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