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Adobe profits double after shift from software sales to cloud-based subscriptions

“Reassuringly expensive software maker Adobe is laughing all the way to the bank after shunting more of its customers into the cloud – like they had any choice in the matter,” Paul Kunert reports for The Register.

“The company closed off fiscal ’15 ended 27 November with Q4 revenue of $1.31bn, up 22 per cent year-on-year, driven by a 44 per cent hike in subscriptions to $907.4m as products declined 13 per cent to $284.4m and services/ support dipped 1.7 per cent to $114.4m,” Kunert reports. “Digital Media annualised recurring revenues swelled to $2.99bn including an increase of $350m in the quarter. Creative ARR jumped $210m to $2.6bn, with 833k net new individual and team Creative Cloud subs added.”

“Pperating profit more than doubled to $290.4m from $124.5m in the prior year,” Kunert reports. “After tax and finance costs, net profit jumped to $222.7m from $88.13m.”

Read more in the full article here.

MacDailyNews Take: Color us old school, but we prefer to own our software outright. Thankfully, other quality image editors like Pixelmator exist that certainly can replace Photoshop for our needs.

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