Tuesday, March, 18 Next Step’s client Adobe posted its Q1 results (fiscal years ending November) , and the market reacted positively to the results as the stock traded higher in after market hours (reports Forbes.com). In the earnings announcement, the company once again reported faster-than-expected adoption of subscription licenses for its Creative Cloud business, as more of its clients chose annual subscription plans. The company reported over 1.8 million paid subscribers for the CC services, a sizable increase of 405,000 over the previous quarter. This generated nearly a billion dollars in annualized recurring revenue in the quarter, and for the first time the cloud subscription revenue exceeded the revenue from perpetual license sales. Adobe also witnessed significant growth in its marketing cloud initiatives during the quarter as revenues grew by 24% year over year to $267 million. However, its LiveCycle software and print and publishing businesses (all relatively small) declined by 10% and 14% respectively.
The company reported diluted earnings per share of $0.09 on a GAAP-basis and $0.30 on a non-GAAP basis. However, the revenues were flat year on year at $1 billion, which is at the high end of its targeted range of $950 million to $1.0 billion. We examine some of Adobe’s key drivers below and its outlook for 2014. (source: Forbes.com) Adobe Creative Suite Cloud Services