Adobe posts 22% Q4 revenue growth, driven by Creative Cloud

AdobeAdobe Systems has claimed it is only just starting to gain from cloud adoption, after reporting record earnings.

Strong growth in subscriptions to Adobe Systems’ Creative Cloud has contributed to the ninth consecutive quarter in which the software vendor topped market expectations, as it reported revenue of $1.31b in Q4 of the fiscal year ending in November 2015. Of this, revenue from its digital media business, including Creative Cloud, rose by 35% to $875.3 million.

The vendor added 833,000 new subscribers to the Creative Cloud in the three months ending in November, some 150,000 more than market analysts expected. Meanwhile, Adobe Marketing Cloud brought in $352 million in revenue thanks to an unexpectedly strong adoption of its software as a service (SaaS) offerings.

Adobe’s strong growth from Creative Cloud has come as enterprises and professionals have adopted the new model of purchasing apps like graphic design tool Photoshop, web design software Dreamweaver and web video building application Flash. According to Adobe 52% of its customers subscribe to the full Creative Cloud bundle, with the remaining 48% subscribing to individual products within the portfolio.

Adobe Systems’ Photoshop Lightroom is now the fastest growing app in its Creative Cloud, CFO Mark Garrett told Reuters. “It’s growing the most because it’s attracting hobbyists and consumers,” he said. Since these were people that would never buy Adobe’s products before, the Creative Cloud and the switch from traditional licensing to web based subscription has expanded its market, Garrett said. “Our financials show that the benefits of our move to the cloud are just beginning.”

Adobe’s digital marketing business, which makes software that analyses customer interactions and manages social media content, grew by just 2.3% in comparison, to $382.7 million.

The company’s shares jumped 4.7% to $93.10 following the release of its latest trading figures.