Adobe Soars on Cloud Optimism: What Wall Street’s Saying
September 18, 2013
Grazed from Nasdaq. Author: Chris Ciaccia.
Adobe Systems shares surged in early Wednesday trading despite the company missing estimates, as its cloud subscription revenue and subscriptions came in better than forecast. Adobe is transitioning from a software company into a cloud computing company, putting its Creative Cloud software in the cloud. On that front, Adobe beat Wall Street’s estimates soundly, adding 331,000 subscriptions, well ahead of a Briefing.com estimate of 262,000 subscribers.
At the end of the quarter, the San Jose-based Adobe said subscribers topped the 1 million mark. “Our customers are overwhelmingly choosing subscriptions instead of perpetual model licenses which is accelerating our business model transition,” Adobe’s executive vice president and CFO Mark Garrett said in a press release. “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." However, for the fiscal third-quarter, Adobe earned 32 cents per share on $995.1 million in revenue, below analysts expectations of 34 cents per share on $1.01 billion in sales…
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