Adobe Systems Incorporated (NASDAQ:ADBE) reported its fiscal second quarter earnings today. Adobe beat estimates due to growth in its cloud-subscription service.
Adobe reported earnings of $88.5 million (17 cents a share) on revenue of $1.07 billion. Wall Street was expecting 29 cents a share in earnings and revenue of $1.025 billion.
Adobe added 464,000 paid Creative Cloud subscriptions from a year ago with an annualized recurring revenue of $1.20 billion for the Creative business.
The company exited Q2 with more than 2.3 million Creative Cloud subscriptions, which is well ahead of the target set for the quarter.
Adobe will unveil a set of Creative Cloud innovations, including desktop and mobile applications, new services, and specialized offerings for key customer segments.
For its earning outlook, Adobe is targeting revenue for its fiscal third quarter in a range of $975 million to $1.25 billion. Adobe is also expecting Marketing Cloud revenue to grow 20% year-over-year.