Adobe Adds Another Half-Million Creative Cloud Subscribers

Another quarter, another big gain in Creative Cloud (CC) subscriptions for Adobe. The company reported that it signed on 502,000 new paid CC users in the quarter ending August 29, bringing the total to 2.8 million. At that rate, the company's current target of 3.3 million CC subscribers by the end of the fiscal year in November remains well within reach.

But subscriptions through Adobe's distribution channel were lower than expected, following strong sales of CS6 in the previous quarter. Adobe Executive VP and CFO Mark Garrett called it a "last hurrah of perpetual revenue" during a conference call with investors today.

Adobe posted total revenue of $1.005 billion in the quarter ? up slightly from the $995 billion it posted in the same period last year ? and said fully 63 percent of revenue came from recurring sources, i.e. subscriptions and term licensing agreements. However, income was down due to increased expenses across the board. read more...