Investing.com -- Shares in Adobe fell more than 1% in after-hours trading after the Silicon Valley-based multinational computer software company lowered its revenue forecasts for the remainder of the year.
In spite of the subdued forward guidance, Adobe said Tuesday that it achieved record quarterly revenue of $1.16 billion during its second quarter that ended in late-May, spurred by an increase in its Create Annualized Recurring Revenue. Over the last quarter, Adobe added more than 638,000 new paying Creative Cloud subscribers, as its marketing Cloud division earned revenue of $327 million. Adobe now has more than 4.6 million Creative Cloud subscribers.
Although the company increased its digital media recurring revenue to $2.93 billion for the remainder of 2015, it lowered its target for total revenue for 2015 to $4.85 billion below prior forecasts of $4.93 billion. Adobe could also miss its target of reaching 6 million paid Creative Cloud subscribers by year's end.
"Strong execution against our Creative Cloud, Document Cloud and Marketing Cloud businesses drove record revenue," Adobe CEO Shantanu Narayen said in a statement. "We are accelerating the pace of innovation in our Cloud offerings and are thrilled to be launching our best Creative Cloud release to date, which includes Adobe Stock – our new stock content service."
During the current quarter, Adobe anticipates earning profits of 0.45 to 0.51 per share on $1.18 to $1.24 billion in revenue. The estimates fall just short of analysts' forecasts of $1.25 billion on 0.54 per share.
“With our business model transition largely behind us, the positive financial benefits are now reflected in our P&L,” Adobe executive vice president and CFO Mark Garrett said in a statement. “We are driving more profit, earnings per share, cash flow and deferred revenue and unbilled backlog."
Shares in Adobe dropped 1.19 points or 1.49% to 78.75 in after-hours trading.