Adobe’s transition to a cloud-based subscription model for its popular software hasn’t been all smooth sailing. In fact, one huge problem last month was that subscribers couldn’t log on to use the Creative Cloud software. And the San Jose company, which began its transition from the box to the cloud in 2011, cautioned that the payoff would take a while. It seems the time has come, according to the second-quarter earnings report Adobe released Tuesday. And the company’s shares are trading at all-time highs as a result.
The company beat analysts’ expectations for subscribers to its service, which now total 2.31 million. Adobe also surpassed expectations for revenue, which rose for the first time in five quarters, to $1.07 billion. Profit rose 16 percent. Investors were also cheered by Adobe’s forecast that it’ll add 1 million subscribers in the second half of the year.
But the software company also announced new hardware: the long-expected stylus Ink, which is paired with a digital ruler, Slide. They’re creative tools for use with a couple of new iPad apps called Line and Sketch.
Shares of Adobe are up sharply as of this post, more than 7.5 percent, to $72.67.
Photo of Adobe headquarters by Paul Sakuma/Associated Press