Adobe subscription number soar as move to cloud pays off

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by Ben Sullivan| 18 June 2014

First sales growth in six quarters after bumpy move away from one-off purchases.

Adobe has posted its quarterly subscription figures, revealing its transition to cloud software has increased customer numbers.

The California-based Photoshop firm said it hauled in customers at a faster-than-projected rate in the second quarter of 2014, getting 464,000 users for its Creative Cloud Web software, bring the total to 2.31 million.

Stocks in the company rose as much as 9.7% in extended trading last night. Adobe's revenue rose 5.7% to $1.07bn, marking the firm's first sales growth in six quarters.

In an interview with Bloomberg, Mark Moerdler, analyst at Sanford C. Bernstein & Co said: "They are moving quite well to cloud subscriptions. The numbers moving over are significant."

Adobe moved its Creative Cloud software to a subscription-only model last year. The transition away from one time purchases of its software such as Photoshop and InDesign resulted in a sales decline for a number of quarters, but with yesterday's results, it appears CEO Shantanu Narayen's decision has paid off.

In May, the Creative Cloud was down for 24 hours, which resulted in Above having to compensate users who were affected.

Adobe said in a post: "The failure happened during database maintenance activity and affected services that require users to log in with an Adobe ID. First, and most importantly, we want to apologize for this outage...and how disruptive it's been to those of you who felt the impact."

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