Adobe Systems Incorporated (NASDAQ:ADBE) marked a record intraday high of $74.69 per share in early Wednesday trading following a post-market earnings report that beat estimates on both the top and bottom line for fiscal Q2 largely aided by growth in subscribers. 

Specifically, the technology giant best known for its portable document format (PDF) posted revenue and non-GAAP EPS of $1.07 billion and $0.37, above consensus for $1.03 billion and $0.30, respectively. 

FY14 revenue and non-GAAP EPS guidance were reiterated, although shares surged based on optimism for new creative cloud subscribers. 

Adobe initially provided FY14 guidance on its Q4 2013 call, outlining revenues to be “flat” versus FY13 (implying $4.06 billion) and non-GAAP EPS of about $1.10. 

Worth noting, the company has historically been conservative with its outlook. However, management seemed more sanguine on this call, which likely gave investors more confidence on ADBE’s transition. 

Adobe is attempting to extend into new areas outside of portable document formats, which should provide pricing power and consequently, lead to higher margins. 

Adobe also added 464,000 net new subscriptions during the quarter, excluding enterprise term licensing agreement users. The company plans to exit FY14 with 3.3 million subscribers (prior wording was for “at least 3 million”), suggesting that net additions are trending at a faster clip. 

While the company continues to execute well on the evolution to a subscription model, valuation could cause some investors to take a pause. The stock is trading at more than 50x forward price/earning, a premium to its historical valuation as well as competitor multiples. 

The company also guided Q3 earnings of $0.22-$0.28 versus consensus of $0.27. The Street was already baking in seasonal factors and sequential improvement from the shift to ratable recognition. Notably, analysts use the midpoint of Q3 guidance as a measure of whether the forecast is positive or negative. In this case, management’s outlook came in below consensus. 

Adobe Marketing Cloud quarterly revenue was $283 million, representing greater than 20% year-over-year growth. 

ADBE trades near $72 at midday, settling in $2 per share lower from this morning’s surge, on almost double average daily volume.