Cloud services are growing phenomenally at Adobe (NASDAQ:ADBE)

Adobe (NASDAQ:ADBE) is to reveal its annual fiscal Q3 results by the 16^th of September and According to Business World, Q2 cloud business was bound to flourish at Adobe (NASDAQ:ADBE) because it was being used by many users. As the adoption remained high, the revenue of Adobe (NASDAQ:ADBE) touched $1.68 billion with the non-GAAP share price at $0.37 in Q2, which was not expected at all! This amount was higher than the target set for the Q2 and in Q3; the cloud adoption trend has remained massive and has gained more revenue for the Acrobat family division and Creative cloud than any other division. Adobe (NASDAQ:ADBE) has started the use of a certain marketing platform which would result in a higher quarter growth and revenue generated. However the revenues from Connect business and Livecycle, as well as the Publishing and Print business remained very flat throughout the quarter.

Q3 FY14 Outlook and Beyond!

If we look at the third quarter of the fiscal, we will find out how Adobe (NASDAQ:ADBE) soared right through the revenue collection of $975 million and gained a fortune of $1.25 billion in total. This in return gave the view of how GAAP was about $0.02 or it could be $0.8 in coming years. And if we have a look at the non-GAAP estimates, we see that it can be around $0.22 or as little as $0.28. The cloud services were adopted in great numbers; there were about 3.3 million CC individuals which were paid.

Consistent growth in cloud services

The expected revenue of fiscal 2014 for cloud is expected to go up to around $1.35 billion as there are various companies which are promoting the adoption of cloud service in their budgets; therefore it is in Adobe (NASDAQ:ADBE) cloud division’s benefit. However in contrast to the profitable revenue generated from cloud services, there is an expectation for the subscription service revenues to decrease. 464,000 customers bought subscription to cloud services in 2013 and the company earned about $2.3 million from these subscriptions. Further, the company progressed in the production of Adobe (NASDA:ADBE) applications such as Adobe (NASDAQ:ADBE) Dreamweaver etc. which also come under the cloud umbrella.

Marketing to increase subscriptions

The marketing division has approximately 21% value in the company overall and a digital and virtual marketing platform has been built for the purpose of marketing of cloud services specially. Shantanu Narayen, the CEO of the company, claims how the digital marketing will be a process worth around $10 billion because the attention paid on this division by Acrobat will result in excellent solutions of marketing capabilities.

Acrobat family growth

10% of Adobe (NASDAQ:ADBE) makes up the total Acrobat family. This division has been neglected before but the revenue generated of 1.9 million proves it deserves attention. It is expected to rise like this in the years to come; moreover there is an expectation of growth from $768 million to a maximum of $1 billion by the year 2020.

All looks good for Adobe (NASDAQ:ADBE)!