Cloud and Proud… Strong solutions fuel Adobe financials

Fuelled by a surge of cloud solution sales, Adobe has reported strong second quarter results, of fiscal year 2014 ended May 30, 2014.

The company achieved revenue of US$1.07 billion, above the high end of its targeted range of $1.00 billion to $1.05 billion.

Adobe also exited Q2 with 2.03m paid Creative Cloud subscriptions, an increase of nearly half a million when compared to the number of subscriptions as of the end of Q1 fiscal year 2014.

“Adobe’s first-half upside was driven by accelerated adoption of Creative Cloud and Adobe Marketing Cloud,” says 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.”

Second Quarter Financial Highlights:

* 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.

* Diluted earnings per share were $0.17 on a GAAP-basis, and $0.37 on a non-GAAP basis.

* Cash flow from operations was $368 million and deferred revenue grew to a record $929 million.

* 53 percent of Adobe’s Q2 revenue was from recurring sources such as Creative Cloud and Adobe Marketing Cloud.

“Our earnings performance in Q2 reflects the financial leverage we have in our model,” adds 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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