Adobe revenue, profit forecast miss estimates
- 9 years ago
Adobe Systems's lower-than-expected revenue and profit forecast for the current quarter overshadowed a strong rise in net subscriptions for its Creative Cloud software suite, sending its shares down 3.5% in extended trading.
The company also said that David Wadhwani, head of its digital media, was leaving to pursue a CEO opportunity.
Adobe has been switching to web-based subscriptions from traditional licensed software to help attract more predictable recurring revenue.
Recurring revenue had reached 73% of total revenue, chief financial officer Mark Garrett said in a statement.
The company said it added 684,000 Creative Cloud net subscriptions in the quarter ended August 28, compared with the 640,000 net additions that analysts had expected, according to research firm FactSet Street Account.
The company also said that David Wadhwani, head of its digital media, was leaving to pursue a CEO opportunity.
Adobe has been switching to web-based subscriptions from traditional licensed software to help attract more predictable recurring revenue.
Recurring revenue had reached 73% of total revenue, chief financial officer Mark Garrett said in a statement.
The company said it added 684,000 Creative Cloud net subscriptions in the quarter ended August 28, compared with the 640,000 net additions that analysts had expected, according to research firm FactSet Street Account.