Adobe Systems Inc draws US$1.081bn in third-quarter revenue

20 Sep 2012

Shantanu Narayen, president and CEO of Adobe

An increase in Creative Cloud subscriptions, and Digital Marketing Suite revenues helped push third-quarter revenue to US$1.081bn for publishing and design software maker Adobe Systems Inc.

Adobe’s Digital Marketing Suite achieved record quarterly revenue with 40pc year-over-year growth.

The company launched its Creative Suite 6 – which includes Photoshop, Illustrator, InDesign, Flash and Dreamweaver – and the web-based Creative Cloud products in Q2 to provide a more stable revenue model, Reuters reported.

Adobe Creative Cloud paid subscriptions grew to about 200,000 in the third quarter ended 31 August 2012. The company added about 8,000 Creative Cloud subscriptions per week during the quarter, exceeding the addition of 5,000 subscriptions per week that was assumed in its third-quarter financial targets.

“Customers globally are adopting our new Creative Cloud subscription offering more quickly than we projected,” said Shantanu Narayen, president and CEO of Adobe.

“We are the leader in the fast-growing digital marketing category, with 40pc year-over-year Digital Marketing Suite revenue growth this quarter.”

Adobe’s earning per share reached US$0.58 in Q3.

Operating income totalled US$391.8m and net income amounted to US$291.2m. Cash flow from operations reached US$263.3m.

“We’re on a path to drive millions of subscribers to our Creative Cloud offering, as well as build a billion-dollar SaaS business in digital marketing,” said Mark Garrett, executive vice-president and CFO of Adobe. 

“This will drive higher long-term growth and create a large recurring revenue stream.”

Tina Costanza was a journalist and sub-editor at Silicon Republic