Adobe to Buy Stock Photo Firm Fotolia; Reports Revenue Jump

Advertisement
By Reuters | Updated: 12 December 2014 10:08 IST
Photoshop maker Adobe Systems Inc said it would buy stock photography company Fotolia for $800 million (roughly Rs. 4,998 crores) and reported quarterly revenue above market estimates, helped by a 28 percent jump in the number of subscribers to its Creative Cloud suite.

Adobe shares were up nearly 8 percent in extended trading.

The company said it would integrate Fotolia, a marketplace which offers royalty-free stock photos and video, with Creative Cloud to raise average revenue per user at the business.

Advertisement

Adobe also plans to continue Fotolia as a standalone service.

Adobe is also seeing strong demand from its corporate customers. Chief Financial Officer Mark Garrett told Reuters that Adobe had closed many deals in the quarter with enterprises, and "the deals were getting bigger and bigger."

Advertisement

Garrett added that Adobe, which loses about a third of its revenue through pirated software, is considering a number of options to combat piracy including making products like Adobe's Photoshop available only if users log into the cloud.

The company said it expected new Creative Cloud subscriptions to decline due to seasonality in the current quarter from the 644,000 it added in the fourth quarter ended November 28.

Advertisement

"(The seasonality) is very typical for software companies, because software purchasers have been trained to buy software at the end of the quarter and at the end of the fiscal year, that's when you get the best deals, Brendan Barnicle, Pacific Crest Securities analyst, told Reuters.

"It is generally far more dramatic for other companies than Adobe," he added.

Advertisement

Adobe has been switching to web-based subscription for its Creative Suite 6 from traditional box licenses to attract more predictable recurring revenue. Online subscriptions let customers access the latest versions of a host of software for a monthly payment.

The company also said it expected an adjusted profit of 34-40 cents per share on revenue of $1.05 billion-$1.10 billion (roughly Rs. 6,560 crores to Rs. 6,872 crores) for the first quarter ending February 28.

Analysts on average were expecting 39 cents per share in profit on $1.10 billion in revenue, according to Thomson Reuters I/B/E/S.

Adobe's fourth-quarter net income rose to $73.3 million (roughly Rs. 457 crores), or 14 cents per share, from $65.3 million (roughly Rs. 407 crores), or 13 cents per share, a year earlier.

Excluding items, the company earned 36 cents per share, higher than the analysts' estimate of 30 cents per share.

Revenue rose to $1.07 billion (roughly Rs. 6,685 crores), while analysts had expected $1.06 billion (roughly Rs. 6,622 crores).

© Thomson Reuters 2014

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Adobe, Apps, Fotolia, Photoshop
Advertisement

Related Stories

Popular Mobile Brands
  1. Kaadhal Enbadhu Podhuudamai Out on OTT: Where to Watch it Online?
  1. NASA’s SPHEREx Maps Water Ice Deposits in Cygnus X, Offering Clues to Earth’s Water
  2. Kaadhal Enbadhu Podhuudamai Out on OTT: Where to Watch it Online?
  3. The Legend of Vox Machina Season 4 OTT Release Date: When and Where to Watch it Online?
  4. Aadu 3 OTT Release Date Revealed: Know When and Where to Stream it Online
  5. Safe House (2025) Now Streaming Online: Cast, Plot, Trailer and Where to Watch
  6. Uranus’ Outer Rings May Reveal Hidden Moons, Scientists Say
  7. WhatsApp Is Finally Working on Adding Support for Android's Notification Bubbles Feature
  8. Realme C100x Tipped to Launch in India Soon as Key Specifications and Design Surface Online
  9. Morgan Stanley Announces MSILF Stablecoin Reserves Portfolio for Issuers
  10. Jio Youth and Gaming Plan With Snapchat+, FanCode and Gemini Pro Launched: Price, Benefits
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.