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Adobe marks a million Creative Cloud subs with $995 million earnings

updated 05:27 pm EDT, Tue September 17, 2013

Company notes 331,000 more subscriptions in third quarter alone

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.



By Electronista Staff
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Comments

  1. cashxx

    Fresh-Faced Recruit

    Joined: 04-13-09

    Suckers......keep feeding them money!!

  1. lockhartt

    Fresh-Faced Recruit

    Joined: 04-11-00

    Really? People are actually ok with this nonsense?! So much for the court of public opinion passing judgement on the exploitation of the masses.

  1. Charles Martin

    MacNN Editor

    Joined: 08-04-01

    "Chose"? There's a choice?

    Doesn't seem like there's a choice (unless you want to keep using CS6 forever, which you probably won't be able to for very long ...)

  1. Inkling

    Dedicated MacNNer

    Joined: 07-25-06

    I'm quite happy with my Creative Cloud subscription. No more fiddling with older versions and fretting over when to upgrade. I now have the latest of everything. And if you'd got any knack for creative design, you can earn that monthly subscription cost back in an hour or two.

  1. macjockey

    Junior Member

    Joined: 06-23-04

    so glad Adobe came up with a business model that is making them money and finally getting away from all the deadbeats pirating their wares.

  1. Tom Daigon

    Fresh-Faced Recruit

    Joined: 08-09-13

    Thinking of signing up for the @adobe Creative Cloud? Some of these horror stories might change your mind. http://forums.adobe.com/community/creative_cloud ...

  1. cashxx

    Fresh-Faced Recruit

    Joined: 04-13-09

    @macjockey......this isn't a true cloud based product. You still have a local install, all they are doing is causing a mess for Admins. As long as people have access to the software its always pirated, I haven't looked, but I'm sure its out there for this latest version.

  1. Charles Martin

    MacNN Editor

    Joined: 08-04-01

    Having taken issue with the wording of Adobe's head weasel, I also should admit in fairness that for people who make their living with this technology (and there are at least a few million such people), the subscription is actually a BETTER deal than the previous few upgrade cycle pricing was. It's the amateurs (aka "occasional users") who are getting a bad deal (except for the new PS/LR deal, that's actually a fair price and Adobe should make it permanent).

  1. kerryb

    Fresh-Faced Recruit

    Joined: 08-05-01

    I have a subcription to the website building app Muse, it was the only option offered for an app that I would have gladly paid a $150 for a non-subscription copy of. I know have to pay for ever going forward $180 year and if I end my subscription the app stops functioning and I loose access to my files. Muse is not a pro-app by any means but designed for the amateur small business or organization still Adobe offers no alternative than a subscription plan.

  1. coffeetime

    Mac Enthusiast

    Joined: 11-15-06

    Agree on it's a fair price for professional users but not for casual users. Also there aren't much choices out there that are comparable to and at par with Adobe software (except Adobe Premiere).

  1. coffeetime

    Mac Enthusiast

    Joined: 11-15-06

    I wish Cinema 4D does the same thing... cloud based subscription.

  1. RockoBoffo

    Fresh-Faced Recruit

    Joined: 06-12-13

    Oh you can't win here, let me tell you my response to the argument 'you have no choice' is I did have a choice - and I stopped using Adobe. To which the response is 'well you aren't even an Adobe customer, why are you talking!' Thud.

    That's right, I"m not - that was my choice.

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