Cloud Fuels Strong Q2 for Adobe

17 Jun

SCRI's NewsBriefs

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Creative Cloud is primarily responsible for Adobe’s strong Q2 and YTD financial results, with 53 percent of Adobe’s Q2 revenue coming from recurring sources such as Creative Cloud and Adobe Marketing Cloud. The increasing importance of cloud-based solutions is consistent with the findings of recent SCRI survey data: Clouds Moving into Production/ Post Activities; and Cloudy Future for Broadcast Pro Video & Digital Content Creation  HIghlights of Adobe’s Q2 financials include:

  • Adobe achieved revenue of $1.07 billion, above the high end of its targeted range of $1.00 billion to $1.05 billion.
  • Adobe exited Q2 with 2 million 308 thousand paid Creative Cloud subscriptions, an increase of 464 thousand when compared to the number of subscriptions as of the end of Q1 fiscal year 2014.
  • Creative Annualized Recurring Revenue (“ARR”) grew to $1.20 billion, and total Digital Media ARR grew to $1.38 billion.
  • Adobe Marketing Cloud quarterly revenue was $283 million, representing 23 percent year-over-year growth.

“Adobe’s first-half upside was driven by accelerated adoption of Creative Cloud and Adobe Marketing Cloud,” said Shantanu Narayen, president and chief executive officer, Adobe. “We’re excited about our upcoming product pipeline and expect a strong second half of the year.”

“Our earnings performance in Q2 reflects the financial leverage we have in our model,” said Mark Garrett, executive vice president and chief financial officer, Adobe. “With Adobe’s Creative Cloud transformation behind us, our focus moving forward is to drive strong revenue and earnings growth with our market-leading cloud offerings.”

 

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