SAN JOSE (AP) — Adobe Systems Inc. on Tuesday reported that its first-quarter profit rose 80 percent as more subscribers signed up for its newer cloud products.
But the company’s outlook for its current quarter fell short of Wall Street expectations and its stock dipped in extended trading.
Earnings for the three months through Feb. 27 came to $84.9 million, or 17 cents per share. That was up from $47 million, or 9 cents a share, a year earlier.
Adjusted for one-time items, the maker of Photoshop and Illustrator software said profit came to 44 cents per share in the latest quarter, beating Wall Street expectations.
The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 39 cents per share.
The San Jose, California-based company said revenue grew 11 percent to $1.11 billion, beating the Wall Street estimate of $1.08 billion.
Adobe said that 70 percent of the quarter’s revenue came from its subscription services, a record high. The company has been shifting to subscription cloud-based software like Creative Cloud, and away from physical products.
The company added 517,000 Creative Cloud subscriptions during the quarter. That’s down from its gain of 644,000 in the previous quarter, but up from the 405,000 logged a year ago.
Adobe said it expects to earn between 41 and 47 cents a share on an adjusted basis in the current quarter on revenue between $1.13 billion and $1.18 billion. Analysts on average were expecting 48 cents a share on $1.18 billion in revenue, according to FactSet.
Adobe also announced on Tuesday a new Document Cloud service that includes mobile apps that let people create and edit PDFs on phones.
Its stock slid 3.8 percent to $76.66 in aftermarket trading. The stock has gained about 17 percent in the last 12 months, closing Tuesday at $79.66.