updated 11:40 am EDT, Wed March 20, 2013
Company ups full-year EPS forecast despite Q1 results
Adobe has cracked over 500,000 paid, individual subscribers to its Creative Cloud service, the company announced on Tuesday as a part of its quarterly results. Free and trial memberships have topped 2 million, Reuters reports. Of the paid subscriptions, about 153,000 were added during the most recent quarter; the company expects to reach 1.25 million by the end of the year.
Creative Cloud provides access to the latest versions of Adobe's Creative Suite apps, such as Photoshop and Illustrator, and related perks such as file storage. The company has put an increasing emphasis on the service, integrating it not only into Mac and Windows software but also its mobile apps. Recently Adobe announced plants to halt boxed copies of the Creative Suite and Acrobat, although people can still pay to download the software without a Cloud subscription.
The shift towards subscriptions caused Adobe's quarterly revenue to dip 4 percent year-over-year to $1 billion. Net income dropped to $65.1 million from $185.2 million. The revenue was above analyst forecasts of $986 million, however, and the company is now guiding toward $1.45 in earnings per share for the full year, up from an earlier target of $1.40, and above analyst estimates pegged at $1.41. The quarter's subscription revenues more than doubled to hit $224.3 million.