Designers and photographers are adopting Adobe’s Creative Cloud at a brisker pace than anticipated, according to Adobe. The company announced, that as of the end of its third financial quarter, there are more than 1,031,000 paid Creative Cloud subscriptions.
Adobe grew Creative Cloud subscriptions by 331,000 in the quarter, some through aggressive pricing promotions. The latest version of its Creative Suite (now dubbed Creative Cloud) software is available via a subscription model only. Lightroom, its software offering aimed at photographers, is still available with a traditional perpetual license as an option.
“Our customers are overwhelmingly choosing subscriptions instead of perpetual model licenses which is accelerating our business model transition,” said Mark Garrett, EVP and CFO, Adobe. “During Q3, 41 percent of our revenue was recurring and we exited the quarter with record deferred revenue on our balance sheet. These results are building a stronger, more predictable revenue model for Adobe which will drive higher long-term growth.”
The company also reported its third quarter financials, which saw revenues fall within expectations at $995.1 million, with a net income of $83 million. Compared from the same quarter a year ago, however, revenues fell slightly, from $1.08 billion. Gross profit is also down from $961 million to $848 million.