Tomahawk, WI 09/17/2014 (Basicsmedia) – Adobe Systems Incorporated (NASDAQ:ADBE) reported mixed results for its third quarter but was still able to meet Wall Street estimates, according to CNBC’s Josh Lipton. CEO, Shantanu Narayen, reiterated that the company remained focused on the adoption of creative cloud while also accelerating growth on the Adobe market cloud.
Adobe received a beating on its earnings that came in at $44.7 million for the three months ended August 31, 2014, down by 46% from a high of $83 million a year earlier. Cash flow from operations came in at $269 million with deferred revenue, on the other hand, growing to a record high of $997 million.
“Adobe reporting 28 cents on $1.01 billion the street was looking for 26 cents on $1.01 billion so a beat there by 2 cents on the bottom, but only just meeting expectations on the top,” said Mr. Lipton.
The maker of creative and marketing software spent a total of $133 million on the purchase of 1.9 million shares in the quarter. The company also exited the quarter with 2.81 million of paid creative cloud subscription, up by 502,000 compared to the second-quarter. Marketing revenue, on the other hand, came in at 290 million.
Adobe business remained stable in the third quarter, seen by a 63% of revenue coming in from recurring sources. Chief financial Officer, Mark Garret, reiterated that the results were an indication that the company was enjoying a successful business model transformation. Revenues in the previous quarters had slowed down as Adobe Systems Incorporated (NASDAQ:ADBE) focused on transitioning customers from Pay-up-front licensed software models to Pay-as-you go subscription software model.
Adobe Systems Incorporated (NASDAQ:ADBE) is moving it’s business model from the traditional desktop software model to a more lucrative internet cloud-computing business model. Narayen remains confident that Adobe is still a leader in creative cloud as well as Adobe Marketing Cloud that should set the company for a strong finish in the year.