Adobe ends 2014 with set of strong financial results

Vendor also announces $800m acquisition of stock photo provider Fotolia

Adobe has enjoyed another quarter of positive financial results thanks to an increase in subscribers to its Creative Cloud and Digital Media.

For the three months to 28 November, the software behemoth's net income was $73.3m (£46.65m), up from $65.3m in the same quarter last year.

Recurring revenue for the firm reached 66 per cent, a jump from 44 per cent in the same quarter in the previous year.

For its full fiscal year its revenue was $4.1bn, up year on year from $4bn. However, net profit slumped to $253m compared with $289bn in its last year.

News of Adobe's financial results comes after the firm announced its acquisition of stock photo provider Fotolia for $800m in cash this week.

David Wadhwani, senior vice president of Digital Media at Adobe, said: "The acquisition of Fotolia will reinforce Creative Cloud's role as the pre-eminent destination for creatives. Creative Cloud is becoming the go-to marketplace for the creative community to access images, videos, fonts and creative talent, through critical creative services like Fotolia and our new Creative Talent Search capabilities."

The acquisition also underlines Adobe's switch to the cloud, which has been going on for the past few years.

Adobe said it is confident it can continue this positive growth into 2015, and is anticipating revenue to grow sequentially in every quarter in its financial year in 2015.

The firm has previously moved away from a traditional licensing model and to a subscription basis, which has caused controversy among certain customers, but this latest set of results appear to show the move is paying off.