Adobe just reported earnings for its second financial quarter of 2013. The company reported revenue of $1.011 billion and non-GAAP operating income of $247.3 for an earnings per share of $0.36 (though diluted GAAP earnings were only $0.15). That’s a little bit better than most analysts expected, especially with respect to the company’s earnings per share.
The Wall Street consensus was that Adobe would report revenue of about $1.01 billion and earnings per share of $0.34. These numbers, it’s worth noting, are very much in line with Adobe’s last quarter, when the company announced revenue of $1.01 billion and earnings per share of $0.35. In the year-ago quarter, however, Adobe still reported revenue of $1.12 billion.
“Our Q2 results reflect our leadership position in Digital Media and Digital Marketing,” said Shantanu Narayen, Adobe’s president and chief executive officer a canned statement today. “Creative Cloud is revolutionizing the creative process, and Adobe Marketing Cloud is quickly becoming the platform of choice for the world’s leading brands, advertising agencies and media companies.”
Adobe is clearly betting the company on its Creative Cloud subscription service, which is set to almost completely replace the company’s offering of shrink-wrapped software. Just yesterday, Adobe launched its latest offering of all of its major Creative Cloud apps, and today, the company announced that Creative Cloud now has over 700,000 subscribers. That’s up from 479,000 subscribers in the first quarter of 2013. The vast majority (92 percent) of its subscribers, Adobe says, are on its annual plan (vs. paying a slightly higher fee for a month-to-month subscription).
Adobe itself expects to hit over 1.25 million Creative Cloud subscribers by the end of the year and a number of analysts believe this is actually a very conservative number.
Besides Creative Cloud, Adobe’s second main group of services is its Marketing Cloud, which includes services for social marketing, media optimization, analytics, testing and targeting. Last quarter, Marketing Cloud achieved quarterly revenue of $215.4 million, a 20 percent year-over-year increase. This time around, Adobe reported Marketing Cloud revenue of $229.9 million.