Adobe’s Revenue Is Strong (For Now)

Adobe released its third-quarter revenue report today, and there are some impressive numbers in there. Adobe said that thanks to “strong performance in each of our major businesses,” it achieved $990 million in revenue during the quarter. That’s 42% increase over the same period last year.

However, it’s not all sunshine and roses. Adobe predicted a fourth quarter that would be less impressive than what Wall Street analysts were expecting, though not by much. The result: share prices tumbled a bit in the stock market.

Though much of Adobe’s business comes from subscriptions for and purchases of developer tools like Photoshop, most of the public knows Adobe for its Flash platform. Flash is used to deliver rich media content like interactive menus, videos and online games inside the web browser.

Adobe is locked in a battle with Apple and some other tech companies, who wish to leave Flash behind in favor of the competing HTML5 standard. HTML5 is supported on Apple’s iPhone and the related devices while Flash is not. While sales of Photoshop, Dreamweaver and other corporate products have been strong, web pundits have questioned Flash’s future.

However, the lower earnings projections are likely due to sluggish corporate spending, according to Bloomberg. Companies and freelancers purchase new versions of Adobe software when they’re released, but no radical leaps forward are expected this quarter, and most of the people who have a desire to upgrade to the most recent one already have.

[via mashable]

Posted in: Adobe