Adobe Systems Inc, the maker of Photoshop and Acrobat software, has reported a jump of 22 percent in the number of subscribers to its Creative Cloud suite from the preceding quarter. The company forecast current-quarter results below the estimates of analysts. The shares of the company rose about 8 percent after initially falling 5 percent in extended trading.
The company was able to add 402,000 subscribers for Creative Cloud, which includes Photoshop, Illustrator, and Flash, in the fourth quarter, up from the 331,000 it added in the third quarter.
“Investors are giving Adobe’s management team credit for its progress despite the light profit to this point, and will likely continue to do so, as long as the number of new cloud subscribers continue to outpace expectations,” Edward Jones’ technology analyst Josh Olson said.
In September, Adobe said it believes subscriber growth for Creative Cloud to top 331,000 because of strong demand from corporate customers and expects revenue of $950 million to $1 billion in the first quarter. Adobe forecast adjusted earnings of 22 cents to 28 cents per share. In line with analysts’ estimates, the company earned 32 cents per share excluding items. However, revenue fell 9.6 percent to $1.04 billion, slightly above the estimated $1.03 billion.