Adobe Systems forecast its current quarter results below analysts' estimates, but posted a rise in its Creative Cloud suite uptake.
In a trading statement last week, the maker of Photoshop and Acrobat software forecast revenue in the range of US$950 million to US$1 billion (£609.2 million) for its fiscal first quarter. It also forecast adjusted earnings per share between 22 cents and 28 cents.
According to a Reuters poll, analysts were expecting average earnings of 34 cents per share on a revenue scenario of $1.02 billion.
However, Adobe reported a 22 percent jump in the number of subscribers to its Creative Cloud suite from the preceding quarter. It declared 402,000 subscribers in its fiscal fourth quarter to 29 November, up from the 331,000 it added in the third quarter. The total number of subscribers currently stands at 1.44 million.
Since last year, Adobe has been shifting to a web-based subscription service from a licensing model. Such a strategy typically brings in less money upfront as payment is spread over the entire period of use, unlike traditional software package sales.
Shantanu Narayen, CEO of Adobe, called for patience and perspective. “No company has gone through a transition of this magnitude. We want to take our entire base and have it move over to the Creative Cloud,” he said in a call to analysts.
Elsewhere in the data release, the company's net income fell to $65.32 million (or 13 cents per share) from $222.3 million (or 44 cents per share), recorded a year earlier over the same period.