Adobe revenue beats; shares fall after in-line forecast

(Reuters) - Adobe Systems Inc on Tuesday reported better-than-expected quarterly revenue, driven by subscriber additions to Creative Cloud, a package of software tools that houses Photoshop. However, the company's shares fell 3.6 percent to $150.90 (111.85 pounds) in after-market trading, as Adobe forecast fourth-quarter revenue in line with estimates. The shift to a cloud-based subscription has brought a more predictable revenue stream for Adobe, by selling its software through web-based subscriptions, and not through the sale of packaged-licensed software. Revenue from Adobe's digital media unit, which includes Creative Cloud, rose 28.3 percent to $1.27 billion, beating estimates of $1.25 billion, according to financial data and analytics firm FactSet. The software maker said it expected an adjusted profit of $1.15 per share and revenue of $1.95 billion for the fourth quarter. Analysts were expecting earnings of $1.10 per share and revenue of $1.95 billion, according to Thomson Reuters I/B/E/S. However, Chief Executive Shantanu Narayen said on a post-earnings call he was disappointed with Experience Cloud bookings in the third quarter. Adobe's Experience Cloud is a set of cloud services and part of its digital marketing unit. The Experience Cloud business recorded revenue of $507.8 million in the reported quarter, about 27 percent of the company's total quarterly revenue. The company's net income rose to $419.6 million, or 84 cents per share, in the third quarter ended Sept. 1, from $270.8 million, or 54 cents per share, a year earlier. Total revenue rose 25.8 percent to $1.84 billion. Excluding items, Adobe earned $1.10 per share, beating the average analyst estimate of $1.01 per share. (Reporting by Munsif Vengattil and Arjun Panchadar in Bengaluru; Editing by Shounak Dasgupta)